Tiger Woods took the golf world by storm in 1997 with a victory at the Masters Tournament. The win and a renewed interest in golf also paid off for Nike Inc. NKEone of Woods’ main sponsors over the years.
What happened: Tiger Woods entered the 1997 Masters as a betting favorite with odds of +800. Woods’ pick to win came after missing out on the 1996 Masters Cup, his only cup to date in the prestigious tournament.
Woods first competed in the Masters as an amateur in 1995 where he finished tied for 41st at five over par.
Although the 1997 Masters took place so many years ago, Woods still holds the record for the youngest Masters tournament winner at the age of 21.
Woods also holds the record for the largest winning margin when he won the 1997 Masters by 12 strokes.
Prior to the 2020 Masters, Woods also held the record for the lowest four-day score.
Nike signed Woods to an endorsement deal worth an estimated $40 million in 1996. Woods prominently wore Nike polo shirts and Nike golf gear.
Winning the 1997 Masters helped cement Nike’s place in the golf industry. Sale of golf clothing increased 76% year over year and golf shoe sales increased 100% year over year for Nike in 1997. This followed 1996 which had already seen both categories recorded triple-digit growth.
Here’s how well investors have done with Nike over the years.
Related Link: How Golf Stocks Have Fared Since Tiger Woods Won The Masters In 2019
Invest $1,000 in Nike: The 1997 Masters took place from April 10-14. On April 14, the day after Woods won his first Masters, Nike shares were trading at $56.16.
A $1,000 investment in Nike stock could have purchased 17.81 shares.
Three stock splits have taken place for Nike shares since the hypothetical purchase, with splits in 2007, 2012 and 2015. The splits would bring the number of shares to 142.48.
The 142.48 shares would be worth $18,287.31 based on a current price of $128.35 for Nike.
This represents a gain of 1,729% for investors, or an average annual gain of 69.2%. Investors who bet on Nike and Tiger Woods landed on the green and may have taken a hole-in-one.