Why Athletes Are Leaving Nike

It's crazy how every footballer as a  kid wanted to wear or be signed by Nike; But now. . .

for some reason, they are leaving. Harry Kane, Neymar, Bukayo  Saka, Sterling, Roger Federer, Tiger Woods, are a few among many  top-tier athletes who've turned their backs on the once-mighty empire.  It’s almost like a revolt, but why?

In this video we are going to make a deep dive into why Athletes HATE Nike but first  here’s a brief recap of its history. I can still remember the first time  I fell in love with the Swoosh, from that iconic ad of a young Wayne Rooney,  eyes blazing with raw ambition, launching to save his dream. That was the dream Nike sold us,  the promise of becoming a legend.

And for decades, they have been the undisputed kings of the pitch. But that dream wasn't built overnight. It was a journey that began back in the 1950s when  Phil Knight, a track athlete, met Bill Bowerman, his Coach at the University of Oregon.

There  their partnership of a lifetime was formed. The two sports enthusiasts and visionaries founded  Nike in 1964, originally calling it Blue Ribbon Sport. However, they changed its name in 1971  to Nike - after the Greek goddess of Victory.

They were merely distributors to  Japanese shoemaker Onitsuka Tiger, but in 1971, they designed the first Nike Swoosh. The plan was to have that boot feature in the 1970 world cup, but it didn’t work out. Though the boot  didn't make it to the tournament, its introduction marked the beginning of a remarkable journey.

The first Nikes however, had some flaws; in cold temperatures like that in the US, it  cracked easily, thus rendering them useless. But due to that failure, Nike had  to turn to markets in other sports, to make their money. But by 1978, they were back.

That year, Nike made history by creating its first professional sports team uniforms for  the Portland Timbers of the North American Soccer League. Two years after returning to  football, they had signed over 40 athletes and had 10 contracts with several associations. This milestone marked the beginning of Nike's journey to becoming a global sports powerhouse.

Subsequently, throughout the 1980s, the company aggressively expanded its product line,  diversifying into various sports and penetrating markets worldwide, laying the foundation for its  dominance and ability to compete in the industry. First, in 1982, Nike made a bold move by signing  with underdog Aston Villa, as other teams snubbed them for Puma and Adidas. But to the world’s  surprise, Villa clinched the European Cup title, and Nike's kits were the star of the show.

This  Cinderella story propelled Nike to the top. But, they didn't stop there. In 1984, the signing of Michael Jordan blew them up even further.

In 1994, they successfully signed 8 of Brazil's World Cup-winning squad with  all wearing the Nike Tiempo Premier boots. Due to Brazil’s success, Nike  was keen on sponsoring the full team and two years later they did just that. At that point, Nike was no longer just a brand, they became one to watch.

The late 90s and early 2000s were Nike's playground. I mean, you must remember their unforgettable marketing campaigns like the 1998  "Airport" commercial, directed by the one and only John Woo featuring the Brazilian national team. If not that, then the viral "Secret Tournament" series, which was a playground for  the world's greatest footballers.

Also, don’t forget Ronaldinho's  viral "crossbar challenge" in 2005. As Nike's dominance grew, so did their ambition.  The swoosh became a symbol of excellence, of innovation, and of style.

But, as with all great empires, the tide is turning. The dream that Nike  sold so convincingly is now starting to fade. The story of Nike's grip  loosening in the sportswear endorsement market has been fairly recent.

Brands like Adidas, Puma, Under Armour,  and New Balance are gaining traction, signing top athletes and teams, and pushing  the boundaries of innovation and style. One of the most recent departures from Nike is Bukayo Saka who signed a  contract with New Balance in 2021. Saka's decision to sign with the  New Balance Brand was driven by the brand’s alignment with his  future goals as a pro athlete.

Not to mention a mouthwatering offer of  £1. 8 million that adds to his account. But it is not just him, Harry Kane's switch to Skechers in 2023 was a surprise  move that raised a few eyebrows.

But when you think about it, it makes total sense. Just before his surprising transfer to Bayern  Munich, Kane’s team asked for double his £836,000 per year deal. But Nike were reluctant to  renew the deal because of the arrival of a young and exciting striker in Haaland.

Plus,  they felt Kane’s name no longer moved the market. Feeling undervalued by Nike, he  made the switch for his future. With Skechers, Kane found a partner  that shares his vision and values.

He got an even better deal from  them - a lifetime partnership. As for Skechers, the move was a brilliant one.  Given it's their first major athlete in football, they felt the striker’s record in world football  and his position as record scorer in the England team was a great deal.

Indeed it was, as they  got to reap a huge rise from the buzz which surrounded his shocking move to Bayern. So the  deal was a win-win for both parties involved. But this wasn’t the sweetest  switch from Nike by a superstar.

Neymar's move to Puma is perhaps the  most shocking and lucrative deal of all. The Brazilian superstar's high-profile switch was  more than just a change of clothes brands. With a staggering £23 million per year deal, Neymar  became one of the highest-paid endorsement athletes in the world, surpassing even the  likes of Lionel Messi and Cristiano Ronaldo.

But this wasn't just about the money -  although the significant upgrade from his previous £11 million per year contract  with Nike was certainly a sweetener. However, this was about control  of his image rights, creativity, and the chance to make his own face away  from the goated names. Puma offered Neymar something Nike couldn't - the freedom to be  himself, to express his unique style and flair.

But it's not just these guys we  have mentioned. Other footballers, such as Raheem Sterling, Jack  Grealish, Sergio Ramos, Casemiro, Lisandro Martinez, to name a few,  have also left Nike for rival brands. But when did it all go wrong?

When  did Nike really lose its shine? One of the most significant issues  has been the company's use of sweatshops in developing economies.  For decades since its first Swoosh, Nike has taken advantage of cheap labor  in countries like Japan, South Korea, China, Indonesia and Taiwan, forcing workers to  toil in appalling conditions for meager wages.

The issue first came to light in  1991 when Jeff Ballinger exposed the truth about Nike's factories in Indonesia.  Workers were earning just 14 cents per hour, barely enough to survive. And as expected,  the public outcry was swift and fierce, with protests erupting at  the 1992 Barcelona Olympics.

But Nike simply gave half hearted apologies and  didn’t learn from its mistakes. Then in 1996, Life Magazine revealed that children as young as 12 were sewing Nike footballs  for next to nothing in Pakistan. But that's not all.

The company was also accused of discriminating  against pregnant athletes. As a result, the most decorated athlete in World  Athletics Championships history, Allyson Felix was forced to  set up her own shoe brand. These controversies have had a significant  impact on athlete decisions.

But how have these policies impacted the decision of other  athletes and how has Nike been faring since. The recent departures of high-profile athletes  from Nike mark a turning point in brand loyalty. A growing list of high-profile athletes have made  notable departures from Nike in recent years, citing various reasons for their decisions. 

The crazy thing is it’s not just footballers. Starting with names like Roger Federer  who left Nike for Uniqlo in 2018 in search of a more lucrative deal which he got when  Nike didn’t want to overpay aging athletes. Also, we can’t forget when Tiger Woods ended  his 27-year partnership with them in 2017, signing with TaylorMade for better equipment and  a competitive edge.

Although the major reason they let him go was because Nike  wasn’t really looking to Golf anymore, and Woods hadn’t been the  same top player for a while. Meanwhile, female athlete Simone Biles has  left due to reasons of morality and solidarity. The reactions to these departures have been mixed, with some praising the athletes for  prioritizing their values and needs, while others have criticized them for abandoning  a brand that had supported them for so long.

But here’s what’s truly crazy! Despite these departures, Nike's financial performance hasn’t fully taken  a huge hit. In fact, its stocks and revenue growth when compared to its competitors  like Adidas and Puma have gained ground, with its highest rise recorded first in 2023  - the same year Kane decided to part ways.

In comparison, this is not to say Adidas and  the likes haven’t benefited from these upsets, however, when it comes to taking  a hit, Nike seem to be doing fine. Ultimately, this begs the question  - if Nike are doing ok financially, then there’s no need trying to stop  players from ditching them, right? Well, the truth is, everything  isn’t about money and that is why Nike keeps losing high-profile athletes.

In one of its campaigns, titled ‘Dram Crazy’, Nike gave a powerful mantra “Don’t ask if your  dreams are crazy. Ask if they’re crazy enough” But, according Allysia Montano, that  mantra is total bull because she said: “Nike told us to dream crazy until  we were ready to have a baby” So, basically, discrimination  is the reason she dumped Nike. This repulsion for Nike’s prejudicial  treatment is why other female athletes like Biles and so many others have left.

They  all had similar things to say about Nike’s questionable Female working Protection  Rights as reasons for their departures. Nevertheless, it’s not entirely bleak for  Nike. I mean, isn't that why they still have a bunch of top-tier talents like Haaland and  Cristiano Ronaldo bearing the Swoosh?

Indeed, ever since these controversies, Nike  have improved upon those policies. That said, for players like Ronaldo,  the end may just be around the corner with Nike. This is because of the company’s  reluctance to overpay aging athletes or those outside the top tier.

This approach  has led to athletes like Federer, and Woods, as stated before, seeking  more lucrative deals elsewhere. Additionally, Nike's cost-cutting measures have  impacted contract renewals and athlete retention. The company has also shifted in business  strategy, prioritizing running, women's apparel, and the Jordan brand, and these have caused  the reevaluation of its sponsorship deals.

This focus on specific market segments has  led to a decline in support for athletes outside these areas, contributing  to their departure from the brand. Despite all of these departures, Nike  has chosen to keep the indispensable next generation of stars - Mbappe, Vinicius, and  Haaland and they seem to be doing just fine. So what do you think?

Will Nike be able  to keep their position at the top or not?