PA-based AND 1 "still believes there is a future in
basketball shoe sales and in getting athletes to endorse
them," according to Edward Moran of the PHILADELPHIA DAILY
NEWS. Although the company recently ended its relationship
with the T-Wolves' Stephon Marbury, AND 1 signed Sixers
first-round draft pick Larry Hughes to a $500,000 deal, and
also inked Nuggets first-round pick Raef LaFrentz. Instead
of replacing Marbury with a big name, AND1 "is pursuing
young players with potential who are still relatively
inexpensive." AND 1 Founder & President Seth Berger said
the company "still want[s] to have endorsement athletes. It
helps define you to the consumer. But everybody is getting
a little gun-shy." AND 1, which was founded in '93, has
increased its earnings from $1.7M five years ago to $28M in
'97, and Berger is predicting earnings of $40M this year.
Along with an additional $20M from licensing deals with
other sports apparel companies, Moran reports that the
company's '98 earnings "could reach" $60M. Berger: "Our
goal is to be the number one basketball company in the
world. ... Right now, a kid's first basketball shoe is going
to be Nike. In six months, a kid's first basketball shoe
has got to be AND 1" (PHILADELPHIA DAILY NEWS, 7/30).
