|I'm selling all my Nike stock.||TNSquared|
May 24, 2003 7:22 AM
|$90 million endorsement deal to a kid who hasn't put a zero in the second digit of his age but once in his life? I wouldn't want to be the Nike exec that put my signature on that dotted line. I realize LeBron James is supposed the next everything, but still.
What if the kid cracks or flops or just isn't quite as good against NBA players as he appears to be against other 16-17 year olds? What if he blows out his knee in a freak gardening accident this summer?
Even if he is a smashing success, how long will it take Nike to make their investment back? Nike has already saturated the market of people who wear athletic shoes untied while smoking a cigarette on the street corner. Will James's name increase revenue that much?
OK, I admit it. I'm just envious as heck and bitter. Doesn't help that the Grizzlies lost out on the #1 pick (and the chance to sign James) in the lottery yesterday. If he were coming to Mempho-town, I'm sure I'd feel all warm and fuzzy about everything good thing coming to him.
DISCLAIMER: I am in no way licensed, sanctioned or otherwise qualified to provide any type of financial advice. The bamboo and coconut shell lean-to I call home speaks to my investment savy.
May 25, 2003 8:26 PM
Pure speculation, but I'd bet there are a list of conditions and contingencies in that contract...
Like smoking, Nike has to capture every new generation, too.
Nike already has several million in advertising back just because of the contract, too.
May 26, 2003 5:40 PM
|I guess a $90 million deal does start to pay for itself immediately with all the media exposure. Definitely got my attention!
When I first heard about it, I speculated that there would be alot of contingencies in the contract to protect Nike, but people who follow this stuff alot more closely than me say no, at least not if LeBron has a good agent. Still, I think Nike is smarter than that. Who knows? All I know is $90 MILLION DOLLARS IS ALOT OF DOUGH!!
Don't get me wrong, I'm a big Nike fan. Most of my running shoes over the last 15 years have been Nikes. Good company and still hard to beat them for quality.
I just have a hard time digesting the idea that a high school b-baller is worth that much right out of the chute. Of course, I'm probably dead wrong. :)
|13 year old gets $1 million from Nike||txcross|
May 27, 2003 6:58 AM
|It's becoming clear - I'm just too friggin' old!!||TNSquared|
May 27, 2003 10:44 AM
|And I probably chose the wrong sports!
Or I guess it could be my lack of any athletic ability that's keeping me from getting in on one of these deals. :)