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So many people saying this and it makes it very clear that none of you are informed on the business end of things, whatsoever. Yes, Nike's market cap is nearly double that of Adidas currently - but their sales are fairly equal. In 2012 Nike did about $24B and Adidas did about $20B...
What you also have to take into account is that Nike's value and profitability has increased as much as 66% since Mark Parker took over as CEO in 2005. Now do that math. In less than 10 years Nike has expanded from where Adidas is now to their current position (market cap wise).
Now, the question I propose to all you "expert" businessmen is, what makes you think that Adidas can't achieve the same growth? The market is fed up with Nike gouging the customer on high price for questionable quality to the point where major figures representing Nike as a brand are publicly dragging them through the mud as they (reportedly) sign with the competition. No matter how you slice it, this is a HUGE loss for Nike... and nothing but a business opportunity for Kanye. Market cap is determined by assets invested by shareholders and who is to say that there isn't a mass pull out from Nike in the face of this controversy? It's bad now, but wait until Kanye starts throwing names out there in interviews... It will undoubtedly cause panic on Wall St.
Now my next question is, with Kanye, ASAP, Raf Simons, and Rick Owens aligning with the stripes in the last 12 months, what makes you think that Adidas couldn't potentially surpass Nike in global sales for FY14? If you ask me, I think that it's LIKELY to happen by FY15 if these rumors are true. And please, anyone who can metrically disagree with this, show me the numbers. I don't want your opinion. I want numbers to back up what you guys are saying.
You all look at Nike like some impenetrable force of sneakers. They aren't. Anyone who's a TRUE sneaker collector is undoubtedly frustrated with Nike's direction over the last decade and if you ask me, we aren't far from the **** hitting the fan. 3 years ago I'd have scoffed at the idea of Kanye moving to Adidas, and Kanye himself would have probably too, so don't be so naiive to think that the next 3 years couldn't get worse for Nike. The numbers may not reflect it immediately, but business is established on working relationships - relationships that Nike thinks they have immeasurable leverage on and treat them as such (like ****). Not the case.
Random, but I think the key chess piece in this is Kyrie Irving. If Nike doesn't give him a sig by the end of his current contract and he leaves for Adidas..... RIP Nike.
KANYE. WILL. CAUSE. PANIC. ON. WALL. STREET.
DEAD