Nike stock reportedly took a 3.2 percent hit following the announcement of the brand’s endorsement deal with Colin Kaepernick. The Swoosh made the former NFL quarterback a face of its new “Just do it” campaign and reports suggest he has signed a multi-million dollar “star” endorsement contract to boot.
The endorsement contract could see Kaepernick get his own line of apparel, accessories, and shoes, much like a top athlete such as LeBron James. Still, due to Kaepernick’s strong political stance, Nike’s support of the civil rights activist has split opinion.
Some NFL fans have taken to boycotting the Swoosh for “picking sides” and several Twitter users even uploaded videos of themselves burning or destroying their Nike gear.
— Colin Kaepernick (@Kaepernick7) September 3, 2018
According to Fortune, the online backlash has led to investors weighing whether Colin Kaepernick’s endorsement deal would slow Nike’s stock bull run, as the drop in stock is the equivalent of roughly a 4 billion loss in Nike’s market cap.
However, the financial magazine doesn’t think The Swoosh should be worried, as even with the dip, Nike’s stock is still up more than 50 percent in the last year and 134 percent in the past 5 years.
But it wasn’t just the market and fans that reacted to the campaign. President Donald Trump, a vocal critic of NFL players’ “take a knee” protest, gave his thoughts on the Nike deal in an interview with The Daily Caller.
“I think it’s a terrible message that they’re sending and the purpose of them doing it — maybe there’s a reason for them doing it,” Trump said. “But I think as far as sending a message, I think it’s a terrible message and a message that shouldn’t be sent. There’s no reason for it.”
The NFL, however, issued a positive statement about the campaign with the unsigned athlete. “The National Football League believes in dialogue, understanding and unity. We embrace the role and responsibility of everyone involved with this game to promote meaningful, positive change in our communities,” Jocelyn Moore, the NFL’s Executive Vice President of Communications and Public Affairs said.
“The social justice issues that Colin and other professional athletes have raised deserve our attention and action.”
What are your thoughts on the Colin Kaepernick deal? What about Nike’s stock taking a hit? Let us know in the comments.
In other news, Amazon has now joined Apple as only the second trillion dollar company. Read more here.