BY KEN ILCISIN
Nike, started in 1964 is the dominant company in sports footwear. In 1995, it had 36.8 percent share of the U.S. athletic-shoe market and Nike stock is now valued at $54.5 U.S. (as of Dec. 18, '96).
The company exhibits all the signs of corporate success however accusations have been made that employees are exploited and underpaid. If the money isn't going towards employees and facility maintenance, where is it going?
The key to Nike's market success is the constant presence of its swoosh. Look on a billboard, television screen and the clothing of major sport figures and you'll see it.
Michael Jordan, the world's most famous athlete, received an estimated $20 million in endorsement fees. When the market giant decided to move into the world of golf, an estimated $40 million deal was signed with Tiger Woods. Even the University of Michigan football team received a $7 million deal, trading equipment, apparel, money for scholarships in women's sports and a sportswriting fellowship in return for a well-placed logo on the teams' outfits.
Admittedly, Nike funds are helping sports teams survive. It is creating an environment of outrageous salaries and corporate hype. Although Nike didn't become an official sponsor of the 1996 Summer Olympics in Atlanta, it did spend $100 million on "ambush advertising" during the event.
In 1992 the effect of Nike's commercialization of sports was well demonstrated when the Dream Team won its gold medal at the Barcelona Olympics. Charles Barkley was quoted as saying he had "two million reasons," not to receive his gold medal while wearing a sweatsuit which had the Reebok Logo (actual figures later proved he received $4 million in 1992).
Even a Utah University ties into how the sport is being affected by the money waved by companies hoping to gain advertising through sponsorship deals. The Sept. 1, 1995 issue of the Detroit News reported U-M Athletic Director Joe Robertson wanted to stop his coaches from signing endorsement deals. He believed that if the schools reputation was going to be put on the block, the money should be going to that school and no others.
And there is the major problem created by endorsement money. Salaries are augmented and even surpassed due to sponsorship deals. People who want in on the money have no problem proudly displaying a company's logo. When Tiger Woods was seen announcing his participation in his first pro tournament his cap showed three Nike logos and a swoosh was rather evident on the back of his golf shirt.The message put across to fans of sports used to be: work hard, train hard and you might be able to be the next all-American sport god. Now the message is: watch my antics and buy these products and if you work hard and train hard you can sign a multi-million dollar contract.