The NFL suffered a setback this week, losing $14 billion in court, with one of its top partners, Nike, faring even worse. On Friday, Nike saw $28 billion in shareholder value vanish as its stock dropped almost 20 percent in a single day. This significant drop occurred after Nike announced an expected decline in sales for the upcoming fiscal year. The company’s stock has been steadily decreasing since November 2021, going from over $177 per share to $75.65 at the close of trading on Friday. According to CNBC.com, this was the worst day for Nike shares since the company went public in December 1980. Additionally, Nike has cut two percent of its workforce, reducing its payroll by $2 billion.
Since 2012, Nike has been the NFL’s exclusive apparel provider, with its logo being the only corporate logo displayed on player uniforms. The company has played a role in introducing a variety of uniform combinations to professional football. However, Nike is now shifting its focus to larger issues beyond uniform designs, such as potential leadership changes. CEO John Donahoe may be replaced, among other significant alterations at the company’s top level. Nike’s excessive focus on established brands, the lack of innovation in new styles, and its direct-to-consumer sales approach have caused friction with retail partners, resulting in lost shelf space to competitors. Nike’s agreement with the NFL runs until 2028, and by then, the NFL may have recovered from its $14 billion loss through future court decisions. Whether Nike can reverse its fortunes remains uncertain.