By Andrew Beaton and Khadeeja Safdar
Nike Inc. ventured into charged political territory when it put
National Football League quarterback-turned activist Colin
Kaepernick at the center of its latest advertising campaign,
risking backlash to align itself with a cause that has resonated
with young consumers.
The Oregon-based shoe giant saw opposition to its decision in
the aftermath of the announcement when many shoppers began calling
for boycotts of its products. Images of people torching Nike shoes
and cutting swooshes out of gear surfaced on Twitter and other
social-media sites, countered by expressions of support for Nike
and Mr. Kaepernick. Shares of the company fell more than 3%
Tuesday, though they are still up about 27% for the year.
The reaction laid bare the perils of Nike's decision to feature
Mr. Kaepernick, who emerged as the face of protests in 2016 when he
began kneeling on the field during the national anthem to call
attention to racial injustice and social inequality. The player
protests Mr. Kaepernick helped kick-start have been a contentious
issue for the NFL, with criticism coming from President Trump and
fans who have labeled them unpatriotic.
Now Nike faces questions on two fronts: whether its
reinvigorated partnership with one of the most controversial
figures in sports will prove fruitful; and how this move will
affect its relationship with the NFL. While Nike is one of the
NFL's biggest partners with a reported billion-dollar deal that was
extended in the spring, the league is engaged in a high-profile
legal battle with Mr. Kaepernick, who has filed a grievance
alleging that he has been effectively blackballed from signing with
a team because of his political views.
"Although the company's stand may go down well on its native
West Coast, it will be far less welcome in many other locations,"
Neil Saunders, managing director of GlobalData Retail, wrote in a
research note, adding that the brand "cannot afford to make bad
decisions" in a highly competitive sports market.
Mr. Kaepernick revealed his role in the campaign with a Monday
tweet that said: "Believe in something, even if it means
sacrificing everything. #JustDoIt." The tweet, which was shared by
Nike on its official account, included a black-and-white picture of
Mr. Kaepernick's face.
An NFL executive said the league had received a "modest
heads-up" that Mr. Kaepernick was going to be used again by Nike,
but the exact messaging attached to him and the extent of the
revitalized commercial relationship with the player wasn't made
clear.
Nike played down the significance of Mr. Kaepernick's
involvement in its marketing, saying he is one of many athletes
featured as part of the brand's 30th anniversary of the "Just Do
It" campaign. A spokeswoman pointed to ads featuring tennis star
Serena Williams and NFL player Shaquem Griffin, who became the
first one-handed player to be drafted in the Super Bowl era. "All
of those athletes embody the 'Just Do It' spirit," she said.
The company declined to comment on whether it had expected any
backlash from featuring Mr. Kaepernick.
In a statement, NFL spokeswoman Jocelyn Moore said the league
embraces its responsibility to promote change. "The social justice
issues that Colin and other professional athletes have raised
deserve our attention and action," she said.
Mr. Kaepernick has been signed with Nike since his days as an
emerging star with the 49ers. A person familiar with the
negotiations said a new deal was struck that will pay him a "top of
the line," multiyear deal for football players that will include a
shoe and apparel line. Mr. Kaepernick hadn't been featured in Nike
campaigns recently and has gone unsigned by teams since March 2017,
leading to his collusion grievance against the league.
Mr. Kaepernick's discussions on a new deal with Nike have taken
place since around the start of this year, the person said, which
was also in the months before Nike and the NFL completed their new
apparel deal. During that time, Around March, Mr. Kaepernick also
received interest from other apparel companies including Puma SE
and Adidas AG. The person said Mr. Kaepernick's previous deal with
Nike went through mid-2019, all leading to the new pact revealed
Monday.
Representatives of Adidas and Puma didn't respond to requests to
comment.
During a question-and-answer session at a sports-industry
conference in April, Adidas executive Mark King said the company
would "definitely want to sign" Mr. Kaepernick if he signed with a
team.
Recent data from a Wall Street Journal/NBC News shed light on
the divisiveness of the player protests during the national anthem.
In total, 54% of respondents said they found the protests to be not
appropriate, versus 43% who did.
But those numbers sharply diverge by demographic. People between
ages 18 and 34, a key target audience for any apparel brand, view
the demonstrations more favorably -- 56% said they found the
protests appropriate. Older fans overwhelmingly deemed them to be
not appropriate, as did Republicans -- only 10% said they were
appropriate.
Some on social media, including prominent athletes and other
celebrities, have praised Mr. Kaepernick, saying he has drawn
attention to issues such as police brutality and criminal-justice
reform. Basketball star LeBron James, who is sponsored by Nike,
shared the image of the new ad campaign on his Instagram page.
Actress Jamie Lee Curtis tweeted: "The swish got it right!"
Sentiment expressed about Nike on social media, blogs and other
websites turned negative after news of Mr. Kaepernick's involvement
in the campaign was released, according to data from Brandwatch, a
social-media monitoring company. Not including neutral references,
more than 90% of Nike-related mentions were positive in the days
leading up to the news, the data show. Positive sentiment dropped
to about 50% on Monday and 40% on Tuesday.
Doug Hamburger, 62, who lives in Knoxville, Tenn., said he and
his wife are Gold Star parents and take issue with Nike describing
Mr. Kaepernick's actions as "sacrificing everything." "We said
forget it, we can walk away from Nike," the retired district
manager said.
Miranda Lang, 23, who lives in Washington and works at a
nonprofit, said she intends to buy more Nike products as a result
of the campaign. "In the last year or so, I have made a conscious
effort to spend on brands that support the things I support," she
said.
Write to Andrew Beaton at andrew.beaton@wsj.com and Khadeeja
Safdar at khadeeja.safdar@wsj.com
(END) Dow Jones Newswires
September 04, 2018 19:35 ET (23:35 GMT)
Copyright (c) 2018 Dow Jones & Company, Inc.
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