"Nike shares fall as backlash erupts over new ad campaign featuring Colin Kaepernick"
Lauren Thomas of CNBC published an article regarding the recent deal that Nike, world renowned athletic wear company, has made with Colin Kaepernick only days after they sealed the deal with the NFL. Colin Kaepernick, after being the first to take a knee during the national anthem during an NFL game in 2016, was kicked out of the NFL. Not long ago, Nike and the NFL signed a deal stating that Nike would provide jerseys and other merchandise until 2028. Controversy has been sparked by Nike's revelation that Kaepernick is the face of their 30th anniversary campaign, especially regarding the timing of their announcement to the public.
Much of this controversy that has been shared across the internet includes people cutting up their Nike socks, burning their shoes, or simply removing the iconic swoop and criticizing Nike's decisions, especially as they had a very impressive pipeline and an estimated market cap of $127.4 billion. This pipeline was only furthered by the deal with the NFL, making the endorsement of Colin Kaepernick appear more disputable. However, the Nike stock has dropped around 3.2% in the past eight hours, since the release of the campaign, lowering Nike's estimated growth percent that is soon to be released in their quarterly business report.
In my personal opinion, while Nike may have waited to announce that Kaepernick was the face of their 30th anniversary campaign, the decision appears to have been backed by economic logic. In my personal opinion, the decision that Nike made was intended to benefit the company, and as currently, the NFL has yet to release a statement directly addressing the conflict of interests, it appears that the backlash is to be relatively tame. I personally would advocate for the black lives matter movement, and it is unclear as to whether or not this is a message that Nike is trying to send, but given its market, it is certainly a possibility. The questions I would personally ask the company Nike, or those in charge of negotiating deals and endorsements is this: why now when you've had the opportunity to make this deal for years? Are you trying to send a message, and if so what is it? Are you believing in something even when it means sacrificing everything?
I agree with you 100 percent. I believe that maybe Nike is doing this to maybe bring a point across and I think Kaepernick being the new face could also bring new things to the tabl.
ReplyDeleteI can imagine it would be incredibly hard for Nike to make the decision to announce controversial details about their campaign, so I have to agree with you when you say that they backed it up with economic logic. Though there is a lot of controversy in the media, Nike must have made the decision for a reason, meaning they could be trying to get out a specific voice or reach specific people regarding Kaepernick's beliefs.
ReplyDelete-Ryan Mecca
While it’s a big step for Nike to take a hard stance on such a weighted, controversial issue, Nike did wait until they had already signed the contract with the NFL for ten years to release the 30th anniversary campaign, which does undermine their credibility a little bit. However I can appreciate Nike’s bold step in corporate America.
ReplyDelete-Violet Wiedemer
I agree that Nike was trying to get a point across as to what ideology they support but on another note I think that the boycotts of people cutting the swoosh off their items is not going to harm Nike in the long run and it may even work in their favor in the future
ReplyDeleteWhile I agree with the Black Lives movement and every American having the right to express themselves, I am not sure Nike did not want to exploit the situation with the NFL. This ad has made the news, something I believe Nike wanted regardless of individual feelings. -Anna Speer
ReplyDeleteI agree with your point that Nike was attempting to make a point regarding their views, but I would also like to point out the timing of the ad. Why was the 30th anniversary ad aired now instead of earlier in the year? Personally, I believe it has to deal with the fact that as Nike finished securing a NFL jersey deal through 2028, and we all know how the NFL views Kaepernick.
ReplyDeleteI think you make an interesting point about the decision being made for the economic benefit of the company. While I think that could be true, I do think it was a choice they made because of their belief in the movement.
ReplyDelete-Mary Kate Madden
I agree with you. I believe that all people should have freedom to express their individuality in all aspects. However, the timing of the ad and the choice they made i think was all based on their belief in the movement.
ReplyDelete