It wasn't very long ago that the most glaring addition to the pro athlete uniform was a little iconic swoosh. Nike was the king of sports apparel as it gave street credibility to anyone wearing it. It also sat quite comfortably in the pole position for a while as the dual entity of Nike-Bauer in hockey equipment and clothing.But today, The Hockey News is reporting that Nike Inc. will be seemingly "throwing up the white flag of surrender" and sell off their hockey brand subdivision by the end of the fiscal year.
The parent company is looking to focus its energies in other fields and the hockey firm just wasn't bringing in enough revenue for Nike Inc.’s aggressive long-term business plan. Nike Bauer took in more than $160 million in revenue last year.By this admission, it seems as if they are willing to admit defeat to the Reebok company. Could Reebok be the ones waiting in the wings to totally devour their one time business rival and eliminate them for good? Or would speculation lead to a dramatic come from behind Cinderella story and a fresh new company knock off Reebok and become the new kings of the hill.
[Via: The Hockey News]
1 comment:
I don't think it's Nike admitting defeat to Reebok. I think it's simply a case of Nike wanting to focus its resources where there is a better upside. Let's face it, the hockey business has been stagnant for a long time. A company gains market share simply by taking it from other companies. There's no growth in the sport.
Nike Bauer grossed $160 million last year and likely made money. But this is chump change compared to the $15 billion Nike makes, mostly in footwear! With countries like China, Russia, and India modernizing there's such an upside for Nike. In China alone, if only 10% of the population can afford Nike's that's over 300 million people! As big as the US! It makes perfect sense to put effort there, and not in hockey.
In my opinion, despite all the heat Nike has taken in the sport, the bottom line is Nike facilitated great changes in hockey. Nike innovated and pushed Bauer and other companies to do the same or be left behind. Light skates, performance sticks, cutting edge materials, helmets, performance apparel - it's all, in part, due to Nike entering the industry. What's too bad is that Nike Bauer seemed to get it right FINALLY and the game's over.
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