Nike, Hurley and Converse have teamed together again to open the third of a series of a series of new retail concepts entitled ‘Salvation Malibu’.

The trio promises that this store, located in Malibu, California, will offer ‘fresh attitudes, innovative consumer experiences, market tailored product offerings, community resources, and the introduction of customization services.’

The previous two iterations of this multi-brand store, 225 Forest and Salvation Irvine, opened in 2009, in Laguna Beach, CA and Irvine CA respectively.

As mentioned, Salvation Malibu looks to provide a unique opportunity for consumers; on-site customization,

Salvation offers the consumer the best products from NIKE, Hurley and Converse, and a premium shopping experience with a sales staff that demonstrates a passion for action sports, art, music and fashion.

Salvation also offers consumers the unique and exciting opportunity to express their own sense of style and creativity at “The Workshop,” an on-site customization station allowing consumers to create their own custom footwear, apparel and accessories leveraging artwork from artists across all three brands. Consumers can choose items to customize, such as NIKE and Converse footwear, Hurley boardshorts and bikinis, tees and bags, providing consumers the power to create products that speak to their individual sense of style. It’s a portal into a design community, both virtual and hands-on, for consumers to share ideas, concepts and bring an artist’s eye to the key items from each of the brands.

For more information on Salvation Malibu, check out the store’s Facebook page.

[format] Lebron Jordan — The Brooklyn-based start-up shoe company that was started using Google ad revenue from online dating sites — is suing the aforementioned better-known entities for what essentially amounts to a count of tortious interference with business relationships. And how did those entities interfere with the business of Lebron James? [/format]

By sending cease and desist letters for what they believe to be trademark infringement violations.

[quotes]Nike, in its letter, pointed out that not only does the company own several trademarks using the terms Jordan and LeBron, but one of the shoe models on Lebron Jordan’s Web site appeared to be a carbon copy of Converse’s iconic Chuck Taylor All-Stars. Going further, Nike pointed out that the shoe appears to be standing atop a Converse shoe box. (via Portland Business Journal)[/quotes]

Nike believed Lebron Jordan infringed on its various trademarks due to various factors (Similar types of goods, strength of Nike’s own marks — there’s numerous criteria to examine in trademark infringement lawsuits) and they sent their cease-and-desist. The problem is that Lebron Jordan ignored the letter(s), apparently to their own detriment, hence the lawsuit,

[quotes]“The negative press surrounding the threatened action against us has caused us to lose a multi-million dollar deal in addition to declining sales because of the assumption that we have infringed on their respective trademarks,”[/quotes]

Yeah…Good luck with that.

[format] Although Lebron Jordan did state their lack of affiliation with Nike and their various entities with their press release, the terms “Lebron” and “Jordan” are already pretty well established brand names and barring Lebron Jordan’s ability to show priority (they established their trademark first), or to effectively assert a fair-use or parody defense, I don’t see how the can even effectively litigate their lawsuit, let alone win it. [/format]

Seriously…you’re selling basketball shoes called Lebron Jordan’s, for roughly the same price as a pair of Lebron James’ or Michael Jordan’s shoes, and you seriously believe that you won’t confuse any consumers into inadvertently buying your product or dilute Nike/Converse trademarks in the process?

[format] I hope they enjoy the publicity of this lawsuit, as Lebron Jordan may not be long for the basketball shoe world. [/format]

(image via LebronJordan.com)

[format] Last night, millions of viewers watched the Auburn Tigers squeeze out a win over the Oregon Ducks to win the BCS National Championship.  What viewers also saw was a clash between two apparel companies; Nike and Under Armour. [/format]

Oregon — with their custom made Nike uniforms, and Nike chairman Phil Knight, their omnipresent benefactor, came up 3 points short to the Under Armour-clad Auburn Tigers led by Heisman winning QB Cam Newton.

[format] Sounds like a victory for Under Armour and a loss for Nike, right?  Well…not exactly. [/format]

Under Armour received roughly $5.3 million in advertising exposure from the championship broadcast, $2 million more than Nike, with both teams receiving roughly 10 minutes of focused television exposure. (via Darren Rovell)  They also managed to purchase every billboard outside of the University of Phoenix stadium to increase their presence for those fans on-site.  The marketing plan, on its face, seems sound.  Actually, it was impressive.  Cam Newton was adorned in Under Armour logos, UA billboards were outside, and they received extended exposure on SportsCenter during the live interview session (see: Cam Newton and his Under Armour headband/fashionable choker).  Moreover, its quite fortuitous that Under Armour happened to sponsor the team that eventually participated in the National Championship.  UA hasn’t thrown a ton of money into the collegiate marketplace — University of South Carolina, University of Maryland, and Auburn — ranking outside the top 25 in NCAA apparel licensees, yet they were able to land the 14th most popular team (Ed. Note — not every team sells through the CLC.  Teams like Ohio State and USC do their own licensing, but a large majority of the NCAA is represented)…and that team went on to win a National Championship.

[format] Of course, don’t throw a pity party for Nike, they’re still doing just fine. [/format]

To understand why, you have to remember that Nike still has a stranglehold on every business in which they participate.  This is partially why they were so slow to move into the fast-growing “toning-shoe industry”, why they were seemingly willing to let Tom Brady go (he later signed an equity deal with Under Armour), and why, while they’re certainly watching the success of Under Armour with some interest, they are probably far from concerned.  Nike is the company that stole the show away from Adidas at last year’s World Cup, the company that was largely featured with Team USA basketball, and the company that signed an exclusive uniform/sideline apparel deal with the NFL last year.  Is Under Armour making great strides? Of course.  But Nike is still miles ahead of its younger competition.

[format] Need proof?  Nike brought in $20 billion in revenue from November 2009 to November 2010…Under Armour brought in a little under $1 billion in the same time span. [/format]

Need more proof?  The shirts and hats that the Auburn players were wearing after the game…Guess who makes those?

[format] Even though Nike took a “hit” in the apparel battle, they’re still clearly doing quite well in the war. [/format]

So who are these Chinese companies and who are their athletes?  For starters, Yao Ming’s appeal and air time on Chinese television makes any Houston Rocket player a hot commodity and prime suspect to be nabbed by a Chinese shoe brand.  Patrick Patterson is a prime example.  Recently he was signed by Peak sports brand and is position by the company to be their American face.

In the past Chinese shoe brands have kept to signing established and sometime second tier veterans.  LiNing signed Damon Jones a few years ago, before he headed to Puerto Rico.  And Anta signed Steve Francis and Bonzi Wells back when they where playing alongside Yao on the Rockets.

Last year Anta signed it’s largest deal ever by landing the 34-year old Kevin Garnett.  But a few months ago Li Ning signed rookie Evan Turner and was reported to be having discussions with John Wall before he signed with Reebok.  While Anta may be keeping with the old model of sighing veteran players Peak and Li Ning are looking to begin gambling on young talent to build awareness of their brand.

Expect more headlines featuring young NBA talent signing deals with Chinese sport brands.  And don’t let yourself think this is necessarily a plan designed to sell more shoes in America.  Actually, it is a branding strategy to obtain more market share in China.  Yep… these companies are not interested in your greenbacks.  So before you say to yourself  or blog comment ” these shoes are all ugly”, remember… they where not designed to appeal to your fashion tastes.     They have been made in China for China.  They are just using the NBA and its players to sell more shoes in the market everyone is licking their chops to get into.

Below is a list of current NBA players with Chinese shoe contacts.

PEAK

Patrick Patterson – Rockets

Shane Battier – Rockets

Kyle Lawry – Rockets

Carl Landry – Rockets

Ron Artest – Lakers

Sasha Vujacic – Lakers

Jason Kidd – Mavericks

Sonny Weems – Raptors

Darnell Jackson – Cavaliers

Kevin Love – Timberwolves

Jason Richardson – Suns

LI NING

Evan Turner – 76ers

Baron Davis – Clippers

Shaquille O’neal – Celtics

Jose Calderon – Raptors

ANTA

Kevin Garnett – Celtic

Luis Scola – Rockets

Nike’s new deal will take effect in April of 2012.

Although the terms of the deal were not disclosed, Sports Business Daily reported that Reebok paid the NFL a reported $25 million a year to become the official equipment supplier…in 2001.  Needless to say, with the NFL’s marked increase in popularity over the last nine years, Nike paid a  larger sum for the right to supply the NFL’s jerseys and sideline apparel.

And as for the apparel itself?  Apparently we can expect a radical change to the NFL’s uniforms, according to CNBC’s Darren Rovell’s interview with Nike Brand President Charlie Denson,

Darren: Many fans want to know how much you are going to change the jersey. Will it be similar to what you’ve done in college with pretty significant overhauls?

Denson: We plan on changing the NFL jersey dramatically just like we’ve done with the college programs, using new thinking and the greatest technology available. The NFL program hasn’t had the same type of advancement in recent years. (via CNBC)

It’s been an impressive few months for Nike.  When they weren’t stealing Adidas’ spot light as title sponsor during the 2010 World Cup, or being mentioned as the “big sponsor” behind Team USA basketball during this summer’s World Championships, they apparently were plotting to score a sponsorship deal with the NFL.  The NFL deal comes on the heels of Nike reaching an all-time high stock price (a record which has since been broken), after the company set several financial records, including highest gross margins, free cash flow, and direct-to-consumer sales.

While Nike is riding the high of what will be a huge NFL deal, what about the company that lost the sponsorship, Reebok?

To say that the revenue obtained from the NFL deal was a large piece of Reebok’s revenue pie?  That’d be an understatement.

Citigroup Inc. estimates that nearly $350 million of Reebok’s $565 million in annual US sales came from their NFL contract (approximately 2% of Adidas’ overall yearly revenue).  While Reebok does have licensing deals with other sports (MLB, NHL, MLS) and high profile endorsers (Chad Ochocinco, Sidney Crosby, Peyton Manning, and John Wall all endorse the ZigTech line), the sales obviously pale in comparison to the roughly 60% of sales generated from the NFL contract.

$350 million dollars…So, does losing more than 62% of their yearly U.S. sales revenue effectively kill Reebok?  Not exactly.

There has been a shift within the Reebok organization towards womens athletics and fitness, hence the ZigTech line, and Reebok’s wildly successful Easy-Tone shoe product.  Of course, for the sake of comparison, Reebok’s Easy-Tone shoes, which were consistently sold out at various stores during the summer months, allowed Reebok to double their market share in the womens footwear industry to 7% (approximately $90 million in sales), with Nike still dominating the industry with more than 30% of the market share.

$90 million is a far cry from $350 million…but such is the cost for shifting the company’s focus.

Nike has always had an advantage over its two competitors; it took Reebok being purchased by Adidas in 2006 to even make the yearly revenue comparable.  They simply have more money to spend on the big sports sponsorships, especially when they’re otherwise intrinsically tied to the sport, as they are with football.

Maybe, for now at least, Adidas and Reebok are resigned to finishing in second place.

If you are a Nike shareholder, you had a pretty good day yesterday.  The company’s stock hit an all-time high ($79.04) before closing $78.37.

The apparel giant, based outside Beaverton, also held its annual shareholder meeting Monday. Shareholders approved four measures at the meeting, each nearly unanimously.

“Those might have been the highest votes we’ve ever had,” said co-founder and Chairman Phil Knight. “It might have been because of the high stock price.”

Nike’s fiscal year concluded on May 31. Despite a dip in sales, the company set several financial records, including its all-time highest gross margins (46.3 percent), free cash flow from operations ($2.8 billion) and direct-to-consumer sales (nearly $2.5 billion).

At Monday’s meeting, CEO Mark Parker reiterated his aggressive growth plans for the company, saying he wants to grow revenue to $27 billion by fiscal 2015. For Nike’s 2010 fiscal year, the company had $19 billion in revenue.

“That’s an ambitious goal, but it’s exactly what investors should expect from Nike,” Parker said.

The company’s growth plans focus on several areas, including continued innovation and growth in brands such as Converse and Hurley. Parker wants to double Converse’s sales to $2 billion within five years.

Nike also plans to spend between $500 million and $600 million to beef up its retail presence. (via Portland Business Journal)

Nike has certainly been busy in the past couple of months, doing a great job of ambush marketing during this summer’s world cup, they were just named the title sponsor of the 2010 Winter Dew Tour, and of course, who can forget Nike’s strong ties with Team USA basketball?

Brandon Jennings can tell you all about that, if you’ve somehow forgotten.

Of course, that all being said, Parker’s growth plan really is extremely aggressive.  Granted, we seem to be out of the economic recession, but growing revenue by $8 billion dollars in 5 years? When you already seemingly have a stranglehold on the market?  Nike should be a very interesting company to watch over the next couple years, as they try to reach that goal.

Donovan’s game winning goal, in stoppage time, has branded him as an American hero.  Of course, from a marketing standpoint, the question becomes what can be done with Donovan’s new found fame?  Octagon’s David Schwab summed it up best with this tweet:

“Landon may have just done what Lance, Mia & Phelps did.  Be marketable outside of his sport.”

…And maybe he has.  The first rule of being a nationally recognized endorser?  People have to know who you are.

Check.

In the minutes following Landon Donovan’s game winning goal in the 91st minute of action (which sent the U.S. to the round of 16), (Internet) traffic spiked to 11.2 million visitors per minute, which moves the event past the 2008 presidential election as the second highest traffic spike of all-time.

Today’s number was also likely pushed significantly higher because England and Slovenia were also playing a suspenseful World Cup match at the same time. The plethora of World Cup breaking news briefly knocked Yahoo Sports offline and also caused issues at Twitter –- though the latter has been somewhat of a regular occurrence during the World Cup (on a related note, tweets containing “USA” spiked to 6% of total tweet volume). (via Mashable)

Combine that with whatever number of people that were watching the game on television and did not use the internet, and it’s probably safe to assume that Donovan is in the consciousness of the general American public.

It’s also vitally important that the athlete be “in demand”.  The whole nation can know your name, but if they don’t actually want or believe in your brand?  Endorsers will not be beating down your door.  Needless to say, Donovan currently has that area covered as well,

Donovan, the face of American soccer, first appeared on a certified autograph trading card in 2004, pictured as a Los Angeles Dodgers fan as part of an insert set in the Playoff Absolute Baseball set.

That card, prior to Wednesday, was valued at a mere $40 but had been selling for as much as $75 during the first 10 days of the World Cup. In the moments after the U.S. national team’s victory over Algeria, one of the cards on eBay had eclipsed the $100 barrier with three hours still remaining while four new copies of the card had been listed within minutes of the outcome, with two sporting Buy It Now prices of $499.99 and the other two featuring $200 price tags. (via Beckett Blog)

Now, do I expect a Landon Donovan card to sell for $500?  Well, no. But the fact that anyone even had the audacity to ask $500 for the card says something in and of itself.

Finally, the athlete has to actually be marketable.  There are already a few well-known companies that believe in Donovan’s marketability; he currently has endorsement deals with Gatorade and AT&T among others, and was most recently spotted in Nike’s brilliant Write the Future commercial.  He also is an apparent endorser of the Mexican lottery,

Donovan appears to be relatively marketable, he’s well-spoken, talented, and after today, he’s well-known and in demand…even amongst non-soccer fans.  It certainly isn’t outlandish to see some more endorsement opportunities in the near future.  Will Donovan’s goal put him on a plateau with heavy marketing hitters like Peyton Manning?  Of course not.  But might he be mentioned in the same breath as Michael Phelps or Lance Armstrong?

Quite possibly.

You know, I’m starting to think that this Nike company may be able to stick around for a year or two.

Nike, the sports shoe/athletic apparel/casual apparel super company, has immersed itself in the social media space.  Whether you’re reading the latest basketball tweets on Nike’s basketball account, checking out one of their many Facebook pages, or checking out something on Nike’s blog, the company seems to be everywhere you look in the new media space.

Particularly, if you’re looking for a viral video.

According to branded video content distributor goviral, Nike owned three of the top ten most viral videos during the month of April.  It seems like time and time again, there are a handful of big brand sponsors that are owning the viral video marketing space and Nike is one of them along with regulars Heineken, Coca-Cola, and Red Bull. (via Activ8Social)

As the article goes on to point out, three Nike videos (Secret Behind Nike Air, Nike Music Shoe, Earl and Tiger) went on to accumulate over 4.3 million views on Nike’s official YouTube channel…in the month of April.  That’s not even taking into account all of the various copies of those videos that weren’t on Nike’s official YouTube channel.  That’s a lot of eyes viewing your products, and hopefully making you, as a company, a lot of money in the process.

For the sake of showing an example, below is Nike’s controversial Earl and Tiger (created by Wieden+Kennedy Portland), taken from a non-Nike YouTube channel .

4.3 million views in one month is just another example of the power of social media.  There is a reason why sports sponsors and sports teams are moving into this new media space; it produces results.  Don’t believe me?  Maybe you should go check out the video views on your favorite sports video.

“Nike’s relationship with LeBron has created innovative basketball products and captivating campaigns,” said Nike.

James, who plays for the Cleveland Cavaliers, had a seven-year contract with Nike that was due to expire soon, according to Cleveland newspaper The Plain Dealer. It said the new deal will keep the two together for at least the next seven years.

James, who becomes a free agent in July, won the National Basketball Association’s Most Valuable Player award in 2009. (via Reuters)

Beleaguered Philadelphia Eagles QB, Michael Vick, has an endorsement deal once again.  You may have heard of his suitor.  A company by the name of Nike.  Details at Yahoo!,

“Mike has a long-standing, great relationship with Nike, and he looks forward to continuing that relationship,” his agent, Joel Segal, said Wednesday.

Segal would not reveal terms of the agreement. Nike declined a request for comment.

The deal was announced during a panel discussion at the Sports Sponsorship Symposium by Michael Principe, the managing director of BEST, the agency that represents Vick.

Nike, which signed Vick as a rookie in 2001, terminated his contract in August 2007 after the Atlanta Falcons star filed a plea agreement admitting his involvement in the dogfighting ring. At the time, Nike called cruelty to animals “inhumane, abhorrent and unacceptable” and halted release of his fifth signature shoe, the Air Zoom Vick V.

Back when Vick first signed with the Eagles, Carter had said he was “too toxic for most companies to even consider taking a chance on him.” What’s changed? As Carter noted Wednesday, there has been little backlash to the quarterback’s return to the NFL.

But Paul Swangard, managing director of the Warsaw Sports Marketing Center at University of Oregon, isn’t surprised that Nike re-established its relationship with Vick.

“Nike has a history of supporting athletes. I think they are supporting an athlete who still garners attention,” Swangard said. “This is about Michael Vick as the athlete not Michael Vick the prisoner. … When he is inside the lines of the field he is an exciting football player and that’s what a brand like Nike can tap into.”

We’ve seen the reconstruction of professional athletes before.  Kobe Bryant, for example, had the whole Veil, Colorado incident, only to seemingly come back as strong as ever, with a string of endorsement deals, video game covers, and the NBA’s most popular selling jersey.

There has been seemingly little resistance to the Vick-experience, his jersey is even selling well, even without being sold in Pittsburgh-based Dicks Sporting Goods stores…but that doesn’t mean that there hasn’t been any resistance.  When this deal was first announced by main stream media last night, twitter was full of messages like this,

#boycottNike RT @BreakingNews: SportsBusiness Journal: Michael Vick signs endorsement deal with Nike, spokesman says.

Nike, we’re through. RT @BreakingNews SportsBusiness Journal: Michael Vick signs endorsement deal with Nike, spokesman says.

Gross. No more Nikes for us. RT @BreakingNews SportsBusiness Journal: Michael Vick signs endorsement deal with Nike, spokesman says.

No more Nike in this house! @BreakingNews: SportsBusiness Journal: Michael Vick signs endorsement deal with Nike, spokesman says.

Apparently, over the last 12 hours, Nike listened.  Today, they’ve announced that Vick has no endorsement deal with the company.

Nike says it does not have a “contractual relationship” with Michael Vick(notes), a day after the quarterback’s agent announced a deal with the manufacturer.

In a statement released Thursday morning, Nike says it has “agreed to supply product to Michael Vick as we do a number of athletes who are not under contract with Nike.”

So apparently, Nike is providing Vick with equipment, but hasn’t formally endorsed him.

Vick is definitely one of the more intriguing stories in sports history.  Maybe the story itself is still too novel, but at times it seems that the American public is unwilling to ever forgive Vick (of course most have, but the small pockets we see that aren’t forgiving Vick seem a lot larger than what you’ll see with other athletes).  Sports history has had its share of murders, gamblers, cheaters, racists, sexual offenders, adulterers…America has usually not only been quick to forgive these people, but some of them were vigorously defended from the onset (Steelers QB Ben Roethlisberger is a recent example that comes to mind).  But Vick, with his dog fighting ring, is arguably the figure that has been and will be the hardest to redeem in sports history.

No one was vowing to boycott Under Armor when Ray Lewis became a spokesperson (or SOBE life water, for that matter).  There weren’t throngs of people outside of Steeler games, looking to protest the fact that Ben Roethlisberger was on the field.  Fans cheered for Kobe Bryant a few years ago, even if sponsors weren’t beating down his door.

Simply put, what is it about dogs, that we don’t see with people?  Are dogs more highly valued in our society than someone claiming rape? or people involved in a double homocide?  Are people able to intrinsically connect all dogs together (dogs that died are like my dog!) and not people? Or like I said, maybe the situation with Vick is still too fresh?

I’m still not sure.  Maybe we’ll get a better understanding about where we’re at with the Vick experience once he officially gets an endorsement deal.

The 4.2 rating is down 8.7% from a 4.6/12 for last year’s Rafael Nadal-Federer final, which was delayed by rain and contained an extended fifth set. Outside of last year’s final, Federer-Roddick is the highest-rated men’s final since a 5.0/14 overnight in ’00 for Pete Sampras’ final Wimbledon championship. The previous two Federer-Roddick Wimbledon finals earned a 2.8/5 overnight in ’05 and a 3.6/10 in ’04.

Interesting that ratings were actually down in a match in which Federer made tennis history.  Maybe everyone thought it was a foregone conclusion, and didn’t feel the need to watch?  And what did viewers get to see after Federer clinched the record with his 15th major victory?

Come on Nike…maybe next time you’ll get some big name stars to appear in your commercial?  The interesting thing about the spot is that its merely congratulatory; no attempt to sell merchandise of any kind.  Who throws around money like that in a recession?  Probably the same people that seemingly have no problem continuing to do business, even during a recession.

Sports Business Daily — NBC earns 4.2 overnight for Federer’s record setting victory

The Univ. of North Carolina (UNC) and Nike have signed a new 10-year contract for Nike to be the exclusive supplier of athletic footwear, apparel and accessory products for the school. The deal was signed in late May and is retroactive to July 1, 2008. Nike will provide the athletic department with shoes, uniforms, coaching gear and other equipment. UNC will receive $1M for signing the contract…

…In addition to apparel and equipment, Nike as part of its deal will give UNC $2M to the Chancellor’s Academic Enhancement Fund. UNC Chancellor Holden Thorp said that he will direct the funds to faculty support (UNC). In Raleigh, Robbi Pickeral notes the deal is worth $37.7M.

Another day, another deal for the shoe giant that is Nike.  Quite frankly, I’m all for it…as long as Nike doesn’t start giving UNC uniforms similar to the assault on my eyes that is the Oregon Ducks uniforms (but their cutting edge!) then it doesn’t bother me.

Sports Business Daily — Well Heeled: North Carolina signs new 10-year deal with Nike

The contract with Nike, the world’s largest sports shoe and apparel maker, extends its deal through 2013, but the company has an option to renew it through 2017, said USATF Chief Executive Doug Logan. The terms were not disclosed.

Nike has been a team sponsor since 1991 of the national team of the USATF, the governing body for track and field, long distance running and race walking in the United States.

The company outfits all USTF teams in international competitions, including the Olympics.

Logan said the sponsorship deal will establish a fund to help promising athletes in the sport who lack sponsorships by major industry brands.

This is a pretty easy decision.  US Track & Field have no reason to deviate from Nike as far as uniforms and such, and Nike has no reason to not take the extra visibility they’ll receive (especially during the 2012 Olympic Games).  Honestly, this deal has been in place for so long, i don’t think anyone even remembers USATF being with anyone other than Nike.  The one thing I am interested in, which the article did not detail, were the terms of the deal.  Any chance there are some additional digital media terms added to that deal (if they weren’t there previously)? I’d say yes.

Reuters — Nike, USA Track & Field extend sponsorship deal

Shoe and apparel company Nike Inc. said Thursday that it will cut about 1,750 jobs worldwide, or 5 percent of its global work force.

About 500 of the jobs lost will be at Nike’s world headquarters in Beaverton, Ore. The company did not specify what departments the cuts would be in.

“Our new structure sharpens our consumer focus globally to drive continued growth while positioning Nike Inc. competitively in today’s marketplace,” Chief Executive Mark Parker said in a statement. “We remain a growth company and we know these changes have created a stronger organization that will enable us to invest in our most significant opportunities.”

The company, whose other brands include Converse, Cole Haan and Umbro, remains the industry leader. But Nike saw its profit drop in the most recent quarter, largely on one-time items, and its revenue fell 2 percent as the economic downturn dragged on.

You know, you have to love the spin that people always put on bad news.  Layoffs = sharpening our consumer focus globally to strategically position itself in today’s marketplace.  Really? Cause it looks like you’re laying people off because the economy has caused revenue to dramatically slow down making it unprofitable to keep so many workers.  Maybe Cristiano Ronaldo can bring some good news to brighten Nike’s spirits?

Cristiano Ronaldo will give the clearest indication yet that he will remain at Manchester United next season by signing a long-term deal with his sponsors Nike this week.

The new deal, which is worth up to £25million over the next five years, effectively rules out a move to Real Madrid, who are endorsed by Nike’s biggest rivals, adidas.

So, maybe Nike has to lose a few workers, but they’ll be keeping the man who is arguably the worlds most visible athlete (*cough* Tiger Woods is the greatest sports figure ever *cough*) in their stable for another 5 years for only $38 million dollars.  Goes to show how profitable American sports is, doesn’t it?  You are dealing with arguably the most popular player in the most popular sport at the peak of his abilities, and he gets a 5 year/$38 million dollar deal.  Nike signed Lebron James to a 7 year-$90 million deal out of high school, when he was still unproven.

And speaking of Bron-Bron, what’s Nike doing to “sharpen consumer focus” here in the states?  Puppet. Commercials.  Maybe I’d appreciate them more if they used Kobe and Lebron’s real voices (they’re under contract, right? you couldn’t get them to make a commercial?) or if they just weren’t Nike’s ‘little Penny’ commercials recreated, minus Chris Rock and Tyra Banks (Nike! I’m old enough to remember those commercials, you cant fool me by re-making them using puppets and no celebrities).  Maybe the real Kobe and Lebron would have cost too much money, and Nike wanted to make sure the lay-off number didn’t go over 1,750? Maybe Nike is re-positioning itself to take over the athlete-puppet market? Who knows.

I hope this recession is over soon, or 6 months from now Nike might be passing off pet rocks as NBA superstars.

Houston Chronicle — Nike to cut about 1,750 jobs worldwide

Mail Online — Long-term Nike deal holds key to Ronaldo’s future at Manchester United

Under Armour, known for its moisture-wicking shirts, is rapidly expanding its footwear business and made its biggest splash to date in January when it entered the $5 billion running shoe market. That will soon be followed by a soccer cleat launch to help grow its presence internationally…

Analysts say Under Armour will be paying closer to attention to how much it spends on marketing and athlete endorsements. Under Armour spent around $55 million in marketing in 2008. Company executives have also said they’ll pull back on hiring plans.

One decision the 2,200-person company made was to freeze new retail store openings this year. The move is a smart one, industry experts say, as shoppers are becoming more conservative about how much they spend.

Dick’s Sporting Goods, one of Under Armour’s biggest retail partners, is also scaling back its expansion activity. Stifel’s Shaw [Ed. -- Thomas Shaw, an analyst with Stifel Nicolaus & Co.] said the sporting goods giant grew its square footage by 12 percent last year, but that’s expected to drop to 4 percent this year. And that will ultimately impact Under Armour’s retail presence, he said.

I have discussed Under Armour and its battle with the economy on this blog previously (See: Under Armour…Protecting this house? Not so much) and quite frankly, I’m running out of ways to put “protect this house” and “Under Armour” in a title, so it needs to stop.  While it looks like Under Armour is finally taking steps to weather the economic storm (i.e. freezing new retail store openings), one has to wonder if they really have the staying power to compete with the sports apparel giants, like Nike and Adidas.  Especially when they have decided to not cut prices on any of their apparel, and the price point for their new soccer shoe is over $200.  Is their brand strong enough to retain customers and generate new revenue when their price points are pre-recession, larger companies can afford to slash prices and make comparable products, and consumers are willing to spend less?

The sports apparel market has lost many a competitor before, now we’ll just have to see if they’ve claimed another victim or if Under Armour can regain its composure and continue its fight with the sports merchandising giants.

Baltimore Business Journal — Under Armour’s Growing Pains (via The Sports Marketing Professor)