Sponsor Scandals and Shopping Innovations

* In the midst of this year's battle for the NCAA Men's basketball champion, Nike was the in the middle of a minor scandal of its own. Los Angeles Laker star Kobe Bryant may or may not have contacted a college player about signing with Nike. The LA Times reported Thursday that Bryant apparently called Texas freshman Kevin Durant about signing a "$30 million to $50 million shoe deal." While Bryant adamantly denies the claims that he called Durant, this story, whether true or not, is bringing attention to the freshman player whose team recently lost in the tournament to USC in the second round. [report]

* Nike's been a little secretive lately. In a recent report, Nike President and CEO Mark Parker said the company wants to change the way the people shop. How? They wont release any of that information! Parker said these concepts will be in retail within the next year.
I don't know about you, but is there anything Nike could do to be better? The company's third-quarter profit rose 7.7 percent after higher European sales and the ipod-compatible shoe hit the market. Net income also climbed $350.8 million and European sales had their biggest gain in two years. Nike is definitely at the top of its game! Nike's stock closed Friday at 109.5 a share and continues to rise. [report]

Who Would You Wear?

* Back on my Feb. 1st blog, I mentioned that Nike wanted to sign with the German football (soccer) teams as their main athletic endorser. As of Feb 28, Andy Eckardt, reporter for NBC news, said the battle between Nike and Adidas has just begun.
Apparently, Adidas had a contract with Germany's Soccer Federation for a measly $14 million annually. Nike's bid was $63 million. You don't have to be a mathematician to decide which contract you would sign. But Adidas is saying they wanted to renew their contract until 2014. The decision is yet to be made, but I'm sure Nike will put up a big fight. They know how important it is to be the sole athletic sponsor for Germany's football teams. [Nike Challenges Adidas in Home Market]

* One place Nike already won the battle over Adidas was the University of Minnesota. The University's campus newspaper reported that Nike was chosen over its competitor because it offers the "largest financial commitment [and] it has experience in quality service at other major universities." [Nike to Brand All Sports Teams]

* Nike and Payless ShoeSource Inc. are collaborating to market a high-performance running sneaker for only $34.99. Compared to the highly successful (and pricey) Nike Shox, $34.99 for a quality shoe is not bad at all. The line will be produced under the Tailwind Collection and will be sold exclusively at Payless Shoe Stores.
At a press introduction on Feb. 26 in New York, soccer players Hope Solo and Brandi Chastain joined volleyball player Logan Tom to introduce the new footwear. [report]

Nike Celebrates and Saves Money

*After last week, where Nike made its own stock market history, the company had a lot to celebrate! In Las Vegas, during NBA All Start weekend, the MGM Grand Resort hosted the Air Jordan launch party where celebrities showed up to support. Guests included Ciara, Jadakiss, golfer Michelle Wie, T.I., and many NBA starts including Michael Jordan!

* In a local mall in Baltimore, the Downtown Locker Room is selling coveted Air Force One 25th Anniversary sneakers for anywhere from $200 to $2,000 a pair! [report]

* Nike is still enjoying its stock market high and reached $107.73 this past Thursday, Feb 22. It closed Friday at a high of $108.23! It is hard to believe that last August, the stock was at a low of $75. With the stock splitting 2 for 1, I cant imagine how happy the owners of Nike stock are right now. But Nike has decided to end stock option payouts. [report]

Here's a look at the gradual increase of Nike's stock:

* In sports news, Wimbledon has decided to award women with the equal monetary prizes as men during their tennis championship in London in June and July. For those who don't remember, last year there was a huge debate from female athletes as to why the prize money should be equal. Tennis stars such as Serena Williams and Amelie Mauresmo felt it was unfair for men to be paid more.
However, Wimbledon backed up their reasons for the different amounts because of the fact that more fans attend men's matches, thus more money is being spent to see men so the men should be awarded more prize money. Last year, women's champion Mauresmo won $1.117 million while men's champion Roger Federer won $1.170 million, 4.6 percent more than Mauresmo.
For the full story, go [here]

Nike Goes for Huge Stockholder Payoff

* Last week, after writing my blog entry, I decided to go on Yahoo's finance section and see how Nike's stock was doing. It was at around $94 per share. I began to toy with the idea of buying (or telling my Dad to buy) 100 shares of stock. That would have cost $9,400, which is pennies compared to how much money I could have right now. According to a February 15 news release on Nike's website, the Nike stock will be splitting 2 for 1 AND offering dividends to its stockholders.
To make it worse (for me), the stock is currently at $106 per share.
In conclusion, had I gone through with purchasing 100 shares of Nike stock, I could be S11,800 richer. [news release]

* NikeGO Head Start campaign is currently underway! NikeGO Head Start was started to fight childhood obesity. The campaign was launched to increase the quantity and quality of physical activity in America's schools. The campaign's long-term goal is to get full-time physical education classes taught by trained professionals back in every school.
To visit the NikeGO Head Start web site click [here]

Nike, along with the National Head Start Association and SPARK (Sports, Play and Active Recreation for Kids) announced on February 13 that Charleston, W.Va. will be one of the 12 new sites where the program will be offered in the following year. [report]

* On February 15, Nike donated $9 million over the next five years to public schools in Portland, Beaverton and Hillsboro, Ore. The large sum of money was donated in hopes of developing programs, expanding schools and helping better prepare children for the first grade. [report]

Nike Celebrates Anniversary with Record High

*The Nike stock (symbol: NKE) hit a record high of $103.82 on Monday, Feb. 12. [report]

*The Nike Air Force sneaker line, launched in 1982, recently celebrated its 25th Birthday. They've decided to do "second coming" campaign to boost sales for this product. The campaign's ads will feature basketball stars Lebron James and Kobe Bryant, as well as other athletes. On February 20, iTunes will release an Air Force rap track featuring Kanye West, Nas, KRS-One and Rakim. [report] [commercial]

*This is the new design for Brazilian football star Robinho's custom-made Nike 10-R shoes. Robinho plays for Real Madrid and his shoes are seen here during a match against Zaragoza at the Santiago Bernabeu stadium on January 14.

Nike Ups Its Game

* Nike recently said they will be opening 100 new company stores over the next 3 years. They also hope to reach $23 billion in sales by 2011. Can Nike "just do it"? [report]
* Nike and Apple are being sued for their Nike+ipod Sport Kit. A Colorado company claims the new product infringes on their patent for a similar product. My guess is, the Nike one is so popular and selling so well that the Colorado company wants to get in on the profits. [report]

Three Times a Winner

This week, the Nike Tracker finds three champions across the globe - in San Diego, California, at golf's Buick Invitational, and down under in Melbourne, Australia, at the first tennis grand slam of 2007 - the Australian Open!

* Tiger Woods won 1st place at the Buick Invitational, beating Charles Howell III by two shots. This was Woods' 7th straight PGA Tour victory!



* But Nike's big news for the week, by far, is an outstanding representation in the winner's circle at the Australian Open. Winner Serena Williams, winner Roger Federer and runner-up Maria Sharapova, were all decked out in their Nike gear as they shot for victory.

* During her first-place trophy acceptance speech, Williams even thanked Nike for the "cute outfits" they provided for her and Sharapova. But while Nike was represented on the court, where was Nike on the TV? No memorable TV ads come to mind when thinking of the Aussie Open, unlike last year's "I feel pretty" ad during the U.S. Open with Sharapova.

* Many are dumbfounded as to why #1 and unbeatable Federer has yet to be capitalized on in the marketing realm [report]

Sharapova, she becomes the first female athlete to grace the cover of Teen Vogue magazine!! In the February issue of Teen Vogue, the magazine and Nike are offering a design contest: Create a tennis dress worthy of the number one-ranked female tennis player. Applicants must submit a sketch and brief explanation of the design and Nike, Teen Vogue editors and Sharapova herself will select the winner. Winner will receive a $1,000 shopping spree at Niketown, plus a chance to meet Sharapova at the 2007 U.S. Open. To Enter, Go [here]


Other Nike News:
Sports Illustrated on Nike signing with Germany's football teams [report]
Rapper Juelz Santana to be the new sound in Nike commercial [report]