Reality of Irving’s Import to Nike: ‘They Can Drop Him’

There are a lot of challenges for Nike this year.

Concerns have been raised that Nike will have to heavily mark down prices on shoes and sportswear if it wants to sell them during the holiday season due to a large amount of sneakers and sports clothing. Its stock has fallen 41 percent in the last year.

On Thursday, the Nets suspended one of their superstars, Kyrie Irving, after he posted a link to an antisemitic film on social media.

After suspending its relationship with Mr. Irving, Nike decided not to release his new shoe on Tuesday. The shoe has been made by Nike. It is not clear how much revenue Mr. Irving's shoes bring in, but it is a lot less than what the company makes from Michael Jordan.

There are things outside of Nike's control that are not easy to fix. Nike was in charge of the situation. They can let him go.

Nike did not reply to an email asking about the financial implications of the suspension or the future of Mr. Irving.

The company said in its statement that it condemns any form of antisemitism and that it had suspended the relationship with Mr. Irving. It went on to say that they were sad and disappointed by the situation.

It was the second time in a few weeks that an athletic apparel company was in the middle of a controversy.

The rapper and designer, who now goes by Ye, made antisemitic remarks and wore a shirt with a slogan associated with white supremacists. The Creative Artists Agency cut ties with the artist.

Adidas will suffer a financial impact as a result of severing its relationship with Ye. The division was dedicated to manufacturing and selling Yeezus merchandise. The company said the move would cost about $246 million.

The financial impact of suspending its relationship with Mr. Irving is not likely to be the same as that of Adidas and Ye.

The Jordan brand is the gold standard for Nike. The Jordan brand made up $5 billion of Nike's total revenue last year.

In the hopes of finding the next Mr. Jordan, Nike has inked deals with several basketball stars, including the Los Angeles Lakers superstar.

Fans and fellow basketball players like the early versions of Mr. Irving's sneakers.

On a December 2020 call with Wall Street analysts and investors, John Donahoe, the president and chief executive of Nike, said, "This quarter's launches in basketball, including the King 18, have sold incredibly well."

It's nothing new to use celebrities and athletes to promote products. For athletic giants, forming ties to entertainment stars or top sports figures has been very profitable for decades. In the age of social media, the risks of linking a brand to a celebrity are more obvious.

Barbara Kahn, professor of marketing at the University of Pennsylvania, said that brands have always been concerned about celebrity endorsements.

She said that in the past companies used to tie their advertising campaigns to the attributes of their products.

The brands are having to wrestle with what their brand values are. The branding decisions are more complicated because of that.

In the past, Nike has embraced divisive endorsers. Ms. Kahn said that Mr. Irving's antisemitic remarks made him suspend him. She said that it was a continuation of the diversity and equity values that it has been signaling to consumers.

The situation involving Mr. Irving began when he posted a link to a film on social media. The Holocaust didn't happen, according to its claims.

Mr. Irving was suspended by the Nets because he had not said that he had no antisemitic views.

Mr James told reporters that he believed Mr. Irving had hurt a lot of people.

Mr. Irving apologized on his social media accounts. He apologized to the Jewish families and communities that were hurt by his post.

Many of the shoes he collaborated on with Nike were personal, like his "I love you mom" series of shoes.

Mr. Irving went after Nike and a version of his shoes, claiming that he was not involved in the design process.

Mr. Irving said that Nike would release it without his permission. He apologized to all of his supporters and sneakerheads.