Nike (NKE) shares are on the decline Tuesday amid a blossoming controversy over the Swoosh's latest "Just Do It" ad campaign — and a fresh endorsement deal — with former NFL quarterback Colin Kaepernick. The athlete has been a controversial public figure for his on-field protests of racial injustice, taking a knee during the national anthem.
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The existing Kaepernick-Nike contract was expiring, but the Associated Press and other outlets are reporting that it has been renewed as a multiyear deal. According to AP sources, Kaepernick will not only be featured in the 30th anniversary of Nike's "Just Do It" ad campaign, but will be the focus of a new Nike apparel collection. The company is also reportedly donating to his charity, Know Your Rights.
Kaepernick tweeted the ad on Monday.
Believe in something, even if it means sacrificing everything. #JustDoIt pic.twitter.com/SRWkMIDdaO
— Colin Kaepernick (@Kaepernick7) September 3, 2018
Nike's decision has been met with massive social media reaction from both ends of the spectrum. Some have posted images of Nike shoes being burned, while tennis star and fellow Nike endorser Serena Williams tweeted Monday that she is "especially proud to be a part of the Nike family today."
Nike is likely aware that its campaign and endorsement deal would court controversy. Interestingly, the world's biggest athletic apparel brand had in March renewed its deal to supply the NFL with gameday uniforms through 2028. Kaepernick is in the midst of pursuing a collusion case against the NFL.
Shares of the Swoosh fell 3.2% to 79.60 on the stock market today in very heavy volume. Nike stock dropped out of buy range after clearing a flat base from an 81.10 buy point last month.
Colin Kaepernick Upside
Many see the Kaepernick-Nike deal as a positive one for Nike. As of August of last year, Kaepernick's jersey was a top seller, ranking No. 39 despite not being signed to an NFL team.
And Yahoo Sports sources say that in the event that Nike did not extend its partnership with Kaepernick, Adidas and Puma were considering wooing the high-profile athlete.
Under Armour (UAA) edged up 1.5%, Adidas (ADDYY) fell 1.7%, and Lululemon (LULU) rallied 1.5%.
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The post Nike's Colin Kaepernick Deal Goes Beyond 'Just Do It' Ad Campaign appeared first on Investor's Business Daily.
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