Nike blistered after shoe malfunction
Nike is looking into what went wrong after college basketball’s biggest star sprained his knee when his shoe fell apart, one of the most high-profile apparel failures in basketball history.
Duke University freshman Zion Williamson, the consensus No. 1 pick in this year’s NBA draft, tumbled to the court less than 35 seconds into Wednesday night’s loss to in-state rival North Carolina. He had planted his foot to change direction when his left shoe — the PG 2.5 PE — came apart, causing him to fall awkwardly.
The fallout for the world’s largest sportswear brand was immediate. Twitter lit up with jabs from fans and rival brands, making “Zion” and “Nike” trending topics within the social media network. The company’s stock fell as much as 1.7 percent in trading Duke basketball star Zion Williamson checks his blown-out left shoe after falling awkwardly to the floor during a game against North Carolina on Wednesday. The freshman’s Nike-brand shoe split apart about 30 seconds in; Williamson suffered a sprained knee and missed the rest of the game. on Thursday.
“We are obviously concerned and want to wish Zion a speedy recovery,” Nike said by email. “While this is an isolated occurrence, we are working to identify the issue.”
Though the incident, which occurred during the highestprofile rivalry game in college basketball, certainly is embarrassing, it likely won’t affect Nike’s prominent standing within the sport, Bloomberg Intelligence analyst Chen Grazutis said. By combining Nike and its Jordan brand, the company has more than 90 percent of the basketball market. Nike reported $4.35 billion in wholesale equivalent basketball sales in fiscal 2018, about 14 percent of its overall sales.
“They might get a lot bad press over the next couple days, but I don’t think it will have a direct impact on the shoes,” Grazutis said.
Companies such as Nike and Adidas pay tens of millions of dollars for the exclusive right to outfit high-profile college programs, including Duke, meaning their athletes are required to wear uniforms and shoes made by the team’s sponsor. Though Duke’s contract with Nike isn’t public, the Durham school is one of Nike’s most important basketball partners. By comparison, the University of Kentucky, another top basketball school, recently extended its Nike deal for eight years and $30.6 million.
The malfunction might also hurt Nike’s ability to sign Williamson once he decides to go pro. College athletes can’t sign endorsement deals, but competition for elite draft prospects is fierce every year. Last year’s No. 1 pick, Deandre Ayton, signed a deal with Puma that was reported to be the largest rookie deal since Kevin Durant’s sevenyear, $60 million deal with Nike in 2007.