Keeping Score - Why Nike Still Holds Court in the NBA
The stars were out last night in Indianapolis, Indiana, the home to the 73rd NBA All-Star game. While there are more players than ever in the NBA with signature shoe deals, Nike and its swoosh sneakers still reign supreme.
Nike was worn by more than half of the players in the NBA All-Star game per Boardroom.
So, how much are signature deals worth?
Some key player signature shoe deals revealed:
- Lebron James brings in ~$500 million annually for his signature shoe line, per Sportskeeda.
- Kyrie Irving shared that his Nike signature line brought in 2.6 billion in revenue over the past seven years, or ~$371 million annually.
- Steph Curry’s first signature shoe, The Curry One, brought in $153 million in revenue in the first three months per Yahoo, but analysts are “doubtful” that Steph Curry shoes are “greater than a $250 million business” per CNBC.
While signature shoe lines are excellent at driving top-line revenue, they, more importantly, are higher-margin shoes. By leveraging the brand power of players, brands can command higher prices for shoes of a similar cost of goods sold.
See the prices for a stock brand Nike basketball shoe versus a Lebron James signature shoe.
While Nike is winning the shoe game today, there may be some cracks in the armor. Kyrie Irving left Nike to sign a five-year deal with ANTA, a Chinese shoe brand. Lebron James and Kevin Durant, the two most popular Nike signature shoes, are nearing the end of their careers. James teased a retirement tour at the All-Star Game media sessions, and Durant is 35 years old.
While many may assume the star will come from the NBA, shoe brands are hedging for it to be a WNBA player. Sabrina Ionescu stole the show at All-Star Weekend when she competed and nearly beat Steph Curry in a 3-point shootout. She lost to Steph 29-26, but that would have tied Damian Lillard, who hit 26 in the opening and final rounds to win the NBA Three-Point Contest. And yes, she shot from the NBA line. NBA stars like Jordan Clarkson, Jrue Holiday, Mikal Bridges, and Jordan Poole are regularly spotted wearing the Sabrina 1’s in games.
