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Nike Is The Most Foolish Business Decision In Nearly 10 Years.

2015/11/18 11:08:00 90

NikeNIKESports ShoesTights

  

NIKE

At that time, it was only willing to provide $2 million 500 thousand a year, and UA offered us $5 million 500 thousand a year.

As a result, UA was selected.

NIKE last year matched Durant's UA billion contract.

What's the result?

2014 the total revenue of UA in the accounting year is US $3 billion 84 million, while basketball business is less than $100 million, or less than 3.3%.

However, UA2015 reported its first quarter earnings.

footwear

Products grew by 41% over the previous year, to $161 million.

Then I checked Forbes's sales of signature basketball shoes in 2014, and Lebron's first defended No. 1 (sales 340 million) and Durant Kirby ranked two or three.

In 2013, Currie refused Nike's offer of $2 million 500 thousand a year and switched to UA, but the details of its contract were not announced.

However, according to Nike's offer, UA's contract should be at the level of US $5 million.

(at the same time, the total revenue of the curi era is $5 million 500 thousand, so the average annual endorsement fee of UA can not exceed that figure).

If we take Lebron

Gym shoes

The selling price is simply $200, so Lebron sold at least 1 million 700 thousand pairs of sneakers a year on the basis of $340 million in annual revenue.

According to the second sales of kunii Jersey this year and the all star first prize, we have every reason to believe that the performance of curry shoes will not be much worse than that of Brown (the price of 120 kits is relatively competitive).

If Currie can sell 1 million pairs of signature sneakers, then the sales volume will be $120 million a year, according to the price of 120 dollars per pair.

In comparison with its annual endorsement fee of $5 million, the investment return of Cooley sneakers may reach an astonishing 2000%.

What is more important? Opening the basketball market, Nike occupies 95% of the basketball market in the United States. However, overseas market has no such share. Curry's performance at present is like giving UA a great topic and advertising benefits. How many people are watching the warriors watching the UA is watching UA advertisements. UA is the tightest garment in the main market of the mainland. It also mentioned that the sales of shoes in the UA market share is only 3%, but the shoes are the first industry under the giant brand of Nike.

In the long run, as long as Currie remains in shape, his basketball shoes are likely to help UA complete its strategic pformation and further open its doors to overseas markets.

500W dollars has the opportunity to help a company with annual sales of more than 3 billion of strategic pformation.

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