From Shared Success to Separate Struggles: Nike’s Stock Plummets as NFL Faces Legal Setbacks

The NFL and Nike, two giants in their respective industries, suffered significant setbacks this week. On Friday, Nike lost $28 billion in shareholder value after its stock dropped almost 20 percent, following an announcement of expected declines in sales for the upcoming fiscal year. This was the worst day for Nike shares since the company went public in December 1980. Additionally, Nike cut two percent of its workforce, reducing its payroll by $2 billion.

Nike has been the NFL’s exclusive apparel provider since 2012, with its logo appearing on player uniforms. However, the company is now shifting its focus to larger issues beyond uniform designs, such as potential leadership changes. There are rumors that CEO John Donahoe may be replaced, among other significant alterations at the company’s top level. Nike’s excessive focus on established brands, lack of innovation in new styles, and direct-to-consumer sales approach have caused friction with retail partners, resulting in lost shelf space to competitors.

The NFL also suffered a setback this week when it lost $14 billion in court. One of its top partners, Nike, fared even worse. With one of its stocks dropping almost 20 percent in a single day and losing $28 billion in shareholder value. This significant drop occurred after Nike announced an expected decline in sales for the upcoming fiscal year. The company’s stock has been steadily decreasing since November 2021 from over $177 per share to $75.65 at the close of trading on Friday according to CNBC.com

Whether Nike can reverse its fortunes remains uncertain as it faces challenges both within and outside the industry. Its agreement with the NFL runs until 2028 and by then; the NFL may have recovered from its $14 billion loss through future court decisions or other means of revenue generation