Nike fully understands that the secondary market drives future Nike sales, not only for Nike, but for their retailers.
When people see Dunks and AF1s selling for well over the original retail, it only whets appetites for future releases. Collectors/dealers will scour Niketalk and other sites, waiting to hear where/when the next "hot" release will drop. When it does, their is a mad rush to go and get as many pairs as possible before they sell out.
And when shoes sell out, guess who is happiest of all? The retailers. The profits they reap when a shoe completely sells out it's size run makes up for the numerous Nike models that have to be sold at or below wholesale cost due to lack of customer demand.
Nike has a unique position in the business world, in that Nike has the ability to manipulate demand as well as supply. I'm not thinking too hard to come up with a major corporation in a similar position, but none comes to mind. If someone does have another example, please post it.
While Nike may want to tighten the supply chain somewhat to prevent eliminate some of the more egregious abuses by their retailers, Nike is not going to tamper much (if at all) with the environment that creates such a huge, pent-up demand for Dunks, AF1s, etc. As was pointed out by Caraval15, it was but a few years ago when Dunk LOs could be found marked down into the $20 range (I personally know an online retailer/NTer who picked up some substantial size runs of the "Georgetown" Dunk LOs from various FAs in that price range).
And don't forget that AF1s have been around for a couple of decades now. Do you remember AF1s being so popular worldwide back in the late 80s, early 90s? Nike obviously isn't going to do much (if anything) that might wreck the current success they're experiencing with AF1s.
E and JG seem to be fairly smart. I'll give them the benefit of the doubt that they have been keeping meticulous business records, and have been reporting their taxable income faithfully.....
All smart gangstas know that the easiest way to lose your position of power is to get smacked by the authorities for tax evasion. Al Capone is the prime example. I personally know a few people who diligently pay taxes on the illicit profits of their enterprises (which I can describe as "shady" at best, and downright illegal at worst). The IRS cannot report you for being engaged in illegal activity, unless you are in violation of IRS regulations.
Those are your emotions acting without the benefit of intellect...
I ain't got time to bleed...
