Nike, Inc. faced a billion USD wardrobe malfunctions this Wednesday night. The forward of Duke, Zion Williamson’s shoes were split open within just the first 36 seconds of a matchup against UNC (University of North Carolina. Nike faced an approximate of 1.1 Billion US dollars in terms of market capitalization, all due to the left shoe of the Dukes Basketball star. The Shares of the firm fell by a high rate of 1.7 percent on Thursday.
Nike clarified regarding the scenario by stating that they were clearly troubled and they wished Zion a quick recovery. They further stated that the quality of their projects is crucially important for them.
Despite this clarification from Nike, the firm has already faced enormous damage financially in the short term, as well as being ridiculed by the twitter users; yet most of the financial analysts believe that this incident would not have any long term impact on the company’s reputation. An analyst at NPD Group, Matt Powell spoke to CNN and stated that “This is embarrassing for Nike, but will have no material impact on the business.”
Zion Williamson, who was probably the first overall choice for the 2019 NBA draft, has faced minor short term damage due to the injury. Zion Williamson had to leave the game due to the mild injury of knee-sprain right after the blow out of his shoe. The Entertainment and Sports Programming Network (ESPN) said claim Zion Williamson is formally the most sought after the basketball player.
This event has the probability of turning out as a product liability case for the famous sports firm, As the lawyer from New York’s Edelstein Faegenburg and Brown would predict. The failure of the company’s product is clearly evident and resulted in the untimely injury of the basketball star.
Nike, with its Jordan’ has practically dominated the market of basketball shoes. Nike reportedly made 4.35 Billion in the previous years, with basketball shoes being about 14% of its overall sales. Last year, the Company spent nearly USD 11.5 Billion on marketing and endorsement contracts with star athletes and pro sports leagues.