Tiger Woods dropped a bombshell on the sports world Monday, officially announcing that he will be ending his partnership with Nike Inc (NYSE:NKE) after more than 25 years as a sponsor with the company.
Rumors circulated around Twitter and other sites that Woods may be joining On Holding Ag (NYSE:ONON) as a sponsor, but the company denied those rumors.
On Holding is the holding company for On-Running, a Swiss-based shoemaker backed by tennis legend Roger Federer. On's stock traded up more than 8% Monday morning on the rumors that Woods may sign a partnership deal with the company, but after its CEO Marc Maurer announced that Tiger is not partnering with the company, shares dropped back down 4%.
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Federer owns about 3% of On-Running, according to a report from Quartz. When the company went public in 2021, Federer's stake was worth nearly $200 million. Federer, who is from Switzerland where the company is based, has his shoe line with the company, including court shoes for tennis and pickleball.
Where's Tiger Going?: It's likely that Woods will sign a partnership/endorsement deal with a different golf company amid his departure from Nike. Topgolf Callaway Brands Corp (NYSE:MODG) and Acushnet Holdings Corp (NYSE:GOLF) shares traded higher Monday morning, potentially on speculation that Woods will sign a deal with one of the two companies.
Topgolf Callaway Brands owns and operates various golf brands such as Callaway golf clubs and balls, Travis Matthew apparel, Odyssey putters and more. Acushnet owns and operates Titleist, Footjoy and more. Because Woods is still one of the most popular and well-known names in golf, whichever company signs him is likely going to need to shell out hundreds of millions of dollars.
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