The PGA’s minor league Nike Tour is not only hell for the pros but for its primary sponsor, as well.
Nike Inc. is set to walk away from the developmental tour next year after eight years because it just isn’t getting enough bang for its buck, according to people familiar with the situation.
Tiger Woods and David Duval can certainly sell a lot of golf clubs, apparel and shoes, but golfers aren’t affected by the second tier of golf pros.
Nike signed on to sponsor the minor league tour in 1993 when it was called the Ben Hogan Tour, and after the 1995 season extended the deal through 2000.
The sports industry giant spent about $5 million on the tour and in the mid-1990s, or B.T. (Before Tiger); it was the best way it could grow its fledgling golf business.
But now with a Tiger in its tank – and with layoffs and softer stock price to deal with – concentrating on where it will get its best return is what Nike is all about.
Nike spends hundreds of millions of dollars to market its brand around the globe, and in the past has spent the cash like a drunken sailor.
With it tightening its belt, Nike is forcing major sport organizations and athletes to scramble.
In April, Nike decided not to renew its sponsorship of the New York City Marathon after many years, forcing the New York Road Runners to run to Nike rival Asics to fill the role.
In addition, many NBA stars, used to pocketing $25,000 to $50,000 in endorsement money from Nike, what some called Lexus money, are having to go without as Nike cuts back.
While the split with the PGA Tour is not yet official, a decision is expected in the next several weeks.
A spokesmen for the PGA Tour told The Post yesterday only that “talks between us and Nike are ongoing.”
“We have a contract with Nike that runs through 2000 and no decision has been made beyond that,” the spokesman added.
At the same time, PGA officials say they do not expect any trouble in finding another company to replace Nike’s $5 million.
Ironically, some of the biggest stars on the PGA Tour today came up through the Nike Tour, including Duval, John Daly and Tom Lehman.
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