Nike concluded that backing Kaepernick made good business sense despite the risk of angering the NFLGETTY IMAGES
A debate "raged" at Nike HQ last summer over whether to cut ties with Colin Kaepernick, and the company "very nearly did," according to sources cited by Creswell, Draper & Maheshwari of the N.Y. TIMES. However, Nike Exec VP & Chief Communications Officer Nigel Powell "persuaded his colleagues to reverse course because of the potential for negative publicity." He "argued that Nike would face backlash from the media and consumers if it was seen as siding with the NFL rather than Kaepernick." Nike "concluded that getting behind Kaepernick’s crusade," at the urging of its longtime ad firm, Wieden+Kennedy, "made good business sense despite the risk of angering the NFL." The company "ultimately decided it was a risk worth taking, given the credibility the company would gain with the young, urban market it has long targeted." But the "starring role for Kaepernick represents a big reversal in his relationship with Nike." Earlier this year, sources said that Nike’s decision to "keep him within its stable of sponsored athletes without using him had prompted lawyers for Kaepernick to tell the company it was not living up to its contractual obligations." But Nike VP/North American Communications KeJuan Wilkins said that sponsorship agreements "don’t guarantee an appearance in a campaign or a product" (N.Y. TIMES, 9/27).
MEDDLING WITH NIKE TOO: WIRED's Matt Burgess cites analysis from data firm Graphika as showing that pro-President Trump Twitter accounts "helped to drive the campaign to boycott Nike once it named Kaepernick as the face of its Just Do It campaign." Twitter activity also "shows accounts believed to be linked to Russia's ongoing disinformation campaign helped to amplify the anti-Nike sentiment." Social media analysis firm Graphika co-Founder & CEO John Kelly said that Russian accounts were "definitely participating in the Nike hashtag" and "driving it at the beginning." Kelly said that potential Russian accounts targeting the Nike boycott "should not be a surprise," as the overall issue was "politically divisive." Graphika's analysis shows that the Nike boycott was "largely pushed by Trump's online supporters." These accounts were "densely connected to each other," as the first analysis showed 66.1% of tweets using the #nikeboycott hashtags were "used by pro-Trump accounts" as were 58% of #boycottnike uses (WIRED.co.uk, 9/27).
HATS OFF: Strategic Wealth Partners President & CEO Mark Tepper said of Nike recent stock gains, "This is an iconic brand and iconic brands command premium valuations. Everyone was so worried about the Kaepernick ad, and the week after, their sales actually increased.” Tepper noted Nike's “consumer-direct offense is amazing” and the brand is “really able to identify the right product at the right time and deliver it.” CNBC’s Scott Wapner: “Their digital is very strong.” Aureus Asset Management Chair & CEO Karen Firestone said some analysts a year ago were calling Nike "old" and "obsolete." Firestone: "They really turned it around. They really worked on their digital platform. They have gotten back really on top of the trends with shoes, but also sort of lifestyle brands. I think they were brilliant with Kaepernick” (“Fast Money Halftime Report,” CNBC, 9/26).
