Shoe brand Nike took a massive loss of $1.1 billion in market value and was dubbed as one of the most “expensive apparel failures” of all time. The 1.7 percent drop of Nike in the stock market last Thursday was a result of Zion Williamson’s defective shoe. Millions of television viewers and basketball fans who blamed the company’s defective shoe for endangering the university basketball star.
During the big-time basketball game, the athlete’s shoe partially tore apart as he jumped to take a shot. Sports enthusiasts were horrified as they witnessed his shot resulting in a sprained ankle. Former U.S. President Barack Obama was apparently seen saying “His shoe broke” as he watched the match on the court in disbelief. Former President Obama also tweeted support for Zion Williamson’s fast recovery.
University freshman Zion Williamson was benched the remaining time of the basketball match between his team Duke Blue Devils and competitor North Carolina Tar Heels. He is currently drafted for the next season of the NBA.
New York MBLM managing partner Mario Natarelli stated about Zion Williamson’s unfortunate incident in CBS News, saying that it was a “very visible show structure failure for a company committed to performance and technology of its products.” Other analysts also stated that the defective shoe could significantly affect Nike’s leverage to sign Williamson after he becomes a professional athlete. The deal may potentially cause an even bigger loss that would be worth millions of dollars down the road.
“We are obviously looking concerned and want to wish Zion a speedy recovery. While this an isolated occurrence, we are working to identify the issue.” The company made this statement in response to the backlash. Last Friday at noon, Nike was able to swiftly recover from the market value loss the day before after positive economic headlines made way and rose U.S. stock markets.
Similar brands to Nike sponsor its “exclusive right” to assets including “high-profile college teams” thus, requiring its athletes to were company-made jerseys and trainers.