LeBron James’ lifetime Nike deal was finally revealed and it was worth $1 billion dollars. But did Nike invest too much into the King?
Typically sales are dominated by Kobe, LeBron, Kyrie and KD signature sneakers from Nike Basketball, but as of late sales have been down to stateside Foot Locker locations.
According to a report posted on the TheStreet.com, Footlocker CEO Richard Johnson stated that Nike is starting to “reset the price relationship” on its signature basketball sneakers. In other words, Nike may be lowering some prices on LeBron and Durant styles in order to spur sales.
The news comes after Nike inked a billion dollar deal with LeBron James and a 300 million for Kevin Durant.
With Stephen Curry’s Under Armour signature sneakers and adidas are becoming more competitive than ever, Nike is forced to act now. For example, with the recent release of the LeBron 13 Elite you may notice that Nike kept the prices at $200 USD like its standard counterpart – the non-Elite version.
Fortunately, Jordan Brand is doing well. According to Sam Poser, “The Jordan business is exceptionally strong, while the Nike basketball business has been soft. It’s an item issue as [offerings from] Kobe Bryant, Kevin Durant and LeBron James did not do as well last year,” said Sam Poser, a veteran footwear industry analyst and managing director at Sterne Agee.
So if LeBron James can’t sell his signature shoe for $200 plus over the life of his deal, Nike might want to renegotiate their contract.
Cast your vote below and let us know what you guys think in the comment section. Did Nike invest too much into LeBron?