The NFL had a bad week, losing $14 billion in court, and one of its top partners was even worse — twice as bad.
On Friday, Nike $28 billion in shareholder value lostThe stock price plummeted nearly 20 percent in one day on Wednesday, the day after Nike said it expects sales to decline in the next fiscal year.
The company’s stock price has fallen steadily since November 2021, from more than $177 a share to $75.65 as of Friday’s closing price.
As CNBC.com noted: A bad day for Nike stock Since going public in December 1980.
Nike also laid off 2% of its workforce and cut its total payroll by $2 billion.
Nike has been the NFL’s exclusive apparel provider since 2012. It’s the only corporate logo that appears on players’ uniforms, and the company has also helped lead pro football into the myriad uniform combinations adopted by some college programs.
Nike is now focused on bigger things than how many helmets, jerseys and pants it makes for any given football team. CEO John Donahoe could step down in one of several major personnel changes at the company’s top. The company has angered retail partners by focusing too much on existing brands, not creating new styles and selling directly to consumers, which has resulted in it giving up shelf space to competitors and hurting its bottom line.
Nike’s contract with the NFL runs through 2028, by which time the NFL could potentially avoid $14 billion in losses due to future court rulings. It remains to be seen whether Nike can turn things around.
