Wie’s Impact on Business Not Wee

As expected, Michelle Wie celebrated her 16th birthday last week by turning pro and becoming part of Nike’s stable of staff professionals. This is the most celebrated signing of a teenager with no official playing status on any of the world’s tours since Ty Tryon inked a deal with Callaway Golf in 2001.

Wie’s potential – and solid results in LPGA and PGA Tour events – suggests she won’t be ending up on the mini-tours like Tryon. But what does the near future hold for Wie, and what is the ripple effect that is being felt throughout the equipment industry?

For Nike, the move was a no-brainer. In the last week alone they have made back the estimated $10 million they will pay Wie over the next year in free media exposure alone. With Wie and Tiger Woods on board, Nike now has the two most intriguing golfers on the planet in the fold. Tiger commands our attention because of his amazing talent and his clear goal of surpassing Jack Nicklaus’ record of 18 professional major championships. Wie is compelling because of her amazing talent, and because she has no clear goal at this point. Her potential seems limitless because she has carefully kept all her options open. Will she become the first woman to try playing the PGA Tour full-time? Will she become a presence on the PGA and LPGA Tours? Or will she eventually decide on the LPGA Tour – and will she ever become dominant on any of these tours?

Like Woods, Wie has the potential to be a once-in-a-generation talent. If she flames out to Tryon-ville, at least Nike took a shot with her and reaped the initial attention. I don’t think that’s going to happen, though. Another similarity Wie shares with Tiger is potential breakout popularity in Asia, where golf is huge. Both golfers have Asian heritage that can be played up, and Wie’s home base in Hawaii makes her even more available to this market. That’s just another big plus for Nike (which, not coincidentally, is big in Japan already). Nike tried this approach by signing Grace Park two years ago, but she hasn’t ascended to the heights that were predicted for her.

Will Wie help Nike sell a lot of golf clubs? Probably not. Again, her impact here is Woods-ian. Many people in the golf business will argue that Tiger doesn’t help Nike sell clubs, but he does help in terms of overall brand awareness and attitude. He helps reinforce the notion that whatever sport Nike’s involved with, it has the best athletes using its products. Wie will be utilized in much the same way, I would imagine. Not as a golfer, but as an athlete.

With Wie now a professional, other companies are likely to rethink their endorsement strategies, especially in regard to the LPGA Tour. While Wie is only likely to play in a handful of LPGA Tour events over the next couple years, she will attract major media attention when she does tee it up with the gals. Most golf manufacturers have cut way back on spending on the LPGA Tour in the last couple years. Callaway Golf has Annika Sorenstam locked up in a long-term deal, and TaylorMade-Adidas has both Paula Creamer and Natalie Gulbis. But many big brands, especially Titleist, have been quiet on the LPGA front in recent years. There could be a rush to sign some of the other relatively big-name LPGA Tour players who don’t have equipment deals – Cristie Kerr stands out, and Morgan Pressel will do well when she finally turns pro. But don’t expect that to trickle down to the rank-and-file of the LPGA Tour. Endorsement dollars are tough to come by for the ladies these days, and equipment companies are more likely to pool their money and put it toward signing one player rather than spreading it around over 10 smaller contracts.

And last, but not least, I can’t wait to see how Nike will flex its marketing and advertising muscles now that Wie is in the fold. Nike does a great job when presented with a unique situation, and Wie is one of a kind – a photogenic 16-year-old girl who hits it farther and better than most men. Anyone ready for a barrage of “I am Michelle Wie” ads?

Photo Credit: © Unknown.