Tiger Woods has lost a MusclePharm as a sponsor, ending an endorsement deal after a little less than two years.
SeekingAlpha (via Geoff Shackelford) reports the sports nutrition and supplement maker paid Woods $2.5 million to get out of the deal despite almost three-and-a-half years remaining on their five-year, $7 million contract. Woods was to receive vesting in $5 million in company stock and royalties related to sales of Woods’ specific products.
“Our goal is to take the stigma out of supplements,” said Woods’ agent, Mark Steinberg, to the New York Times shortly after the deal was announced in June 2014. “Tiger Woods, maybe the most fit golfer that we’ve had, let’s show that it’s O.K. to align yourself with supplements. Just be safe when you do it. That’s the message we collectively want to spread.”
When the deal was announced, MusclePharm stock went for nearly $12 per share, with the Woods news sending the stock up about 10 percent. The deal included putting the MusclePharm logo on Woods’ bag.
The stock peaked at $14 in October of that same year. The stock is currently priced around $2.70 per share.
MusclePharm is facing a number of lawsuits, including a $65 million suit filed this week by supplier Capstone Nutrition for breach of contract.