![]() ![]() Sportico conservatively estimates MJ’s take at $150 million. Nike’s Jordan division reported revenue of $3.6 billion, up 15%, in the company’s fiscal year ending in May 2020, including the brand’s first $1 billion quarter. The Swoosh hopes Zion can carry the Jordan torch for the next generation, but it will be a long time before anyone can match the shoe legacy of MJ. Williamson’s deal is worth an estimated $12 million this year, and his first signature shoe, The Zion 1, is available in limited quantities in stores starting Friday. The only blockbuster sneaker contract signed over the past three years belongs to New Orleans Pelicans power forward Zion Williamson, who joined Nike’s Jordan Brand in July 2019 after captivating hoops fans for a year at Duke University. “They are legacy contracts that I think many of these brands would wish they didn’t have.” “Most of these contracts were written a long time ago,” said Powell. Their contracts all run at least 10 years, but Adidas has only 5.5% market share, a tick behind the 6.1% of Under Armour, which built its basketball business on the back of Warriors point guard Stephen Curry. retro business in the 12 months ending in March, per the NPD Retail Tracking Service.Īdidas is paying three players-James Harden, Derrick Rose and Damian Lillard-at least $10 million this year. Nike doesn’t need Kobe to maintain its dominance it has already cornered the market in basketball with an 86% share of performance sneakers, including the Jordan Brand, and a massive 96% of the U.S. “Kobe was a big deal in China but was never a big force in footwear in the U.S.,” Powell said. Nike and the estate of Kobe Bryant did not renew their contract last week-ending a nearly two-decade relationship between the Los Angeles Lakers icon and sportswear giant-and weak sales of performance basketball shoes no doubt played a role. ![]() They have done a masterful job managing the marketplace.” “Nike is doing a lot of different colorways now, and they are launching product in very smart, very creative ways. “The retro product has done phenomenal,” said Cowen & Co. The retail performance business, which does not include direct-to-consumer sales, was $600 million in 2020, while retro, dominated by re-releases of old Jordans and Air Force 1s, was six-and-a-half times larger at $3.9 billion and up roughly 20% year-over-year, according to NPD analyst Matt Powell. The two sneaker markets were roughly the same size in 2015 but have gone in opposite directions ever since. Performance shoes are current basketball styles that are made to be played in, while “retro” shoes are typically performance styles from a decade or more ago that are intended for fashion. was collapsing, down double-digits in most years since its peak in 2015 and plummeting a whopping 23% in 2020, according to market research firm NPD Group. Nike, Adidas, Under Armour, Puma and others have jockeyed to sign the hottest rookies or NBA All-Stars who were sneaker free agents.īut while the latest crop of stars were signing nine-figure contracts, the performance basketball shoe market in the U.S. The blockbuster shoe contract has been a staple for NBA stars since Michael Jordan made basketball sneakers fashionable in the 1980s. ![]()
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