After last month's "unprecedented deal" where Fogdog
Sports gave Nike a minority stake in the company in exchange
for a sales partnership, "rival manufacturers" are
"shunning" Fogdog and "throwing their support behind" PA-
based Global Sports Int'l (GSI), a company that has "yet to
sell even a single shoelace" on the Internet, according to
Bernhard Warner of the INDUSTRY STANDARD. Though a
"commitment from Nike is a badge of legitimacy," rival
manufacturers are "bitter" that Fogdog would "bend to Nike
pressure" in making the deal. As part of the deal, if
Fogdog "makes money" selling Reebok or adidas goods, Nike
"collects part of the windfall." Asics Tiger Corp. Dir of
Sales Jim Hoff: "It confuses me why Fogdog would go into a
deal like this." Robertson Stephens analyst Lauren Cooks
Levitan, on Fogdog being viewed as a "business unit" of
Nike: "If you read the fine print, Nike stands to benefit a
lot. But you've got to wonder what Fogdog gets out of it."
Fogdog CEO Tim Harrington "defends" the Nike deal: "They are
the only 8,000-pound gorilla in the market." Harrington
added that history has shown, "What's good for Nike is
what's good for the industry" (INDUSTRY STANDARD, 10/18).
