Chapter 184: Choice
"It is reported that Nike has the intention of accepting Kyle to its subordinates and offering him a large contract with an annual salary of more than 10 million." Yahoo was the first to strike, and it was around noon. caused people to talk about it, tens of millions of big contracts, and many stars drooled. Is Kyle really that valuable as a rookie?
"According to reliable sources, Adidas has issued a total of 90 million sneaker contracts for Kyle, with a contract period of six years, and the details are unknown." A certain person broke the news, the time is half past six in the afternoon of December 1, this is of course Allens's masterpiece, wait for the price and sell, let the two sides turn over the hole cards and then make a choice.
People are dumbfounded again, I rub! That's a lot of money! Are NBA stars worth that much now?
Then, less than half an hour later, another reporter broke the news that "Nike has increased the value of the contract, breaking the total amount of LeBron's contract that year." ”
These two pieces of news directly create the illusion that money is not money! LeBron didn't play a game in his rookie year, and the contract he signed for seven years and 93 million has shocked everyone, and it is simply an ironclad superstar ruler that is loved by thousands of people. Why is Nike so sure James can play? LeBron is just a high school student. In fact, at that time, the name of "Little Emperor" had resounded all over the United States, that kind of perverted physical fitness has exceeded the limits of human beings, and it is rare to see in a hundred years, plus he is young and old, the ball quotient is very high, and he has absolute dominance on the court, Nike also sent special personnel to follow up and inspect, data analysis, conduct long-term dissection, compare and summarize, and came to the conclusion that he has more than 65% of the possibility of becoming a superstar, 30% of becoming a star, 5% of becoming a qualified starter, and the possibility of waste materials is basically non-existent.
Of course! That's pure gambling, gambling with data and physical talent. After many meetings, they finally offered LeBron a shocking sneaker endorsement contract. As everyone knows, Nike won! A contract with an annual salary of more than 10 million is completely worth it, and at the same time it wins LeBron's heart, after all, he will soar if he dares to press him before the game starts, there are really not many, Nike has this courage, this is Bole.
Now Nike's contract for Kyle is easier to understand. When Kyle didn't enter the league, he didn't have LeBron red, and he didn't have the physical talent against the sky, and he couldn't reach the potential value of being followed up and examined, so he was ignored by the brand companies early on, and when he entered the league to kill the Quartet, the brand companies finally put their hot faces together, and it just so happened that he would be abused by the Spurs, and these capitalists retracted their heads again, wanting to wait and see, they still don't have much confidence in Kyle, or physical problems!
When Kyle violently cut down 60, they looked back at it and realized that Kyle had become a big name, and he was only nineteen years old, with great potential and the strength to compete with LeBron, which made everyone red-eyed. How powerful is 60 points, what a legend! It's amazing! Awesome! Crazy! Great! It's all fiction, and I can't describe its ultimate effect. And now directly scare those small brands of sneakers away, the two major sports brands actually send money first, and the contract is like snow, which is the most straightforward and effective way to explain the power of 60 points.
Compared with the "Little Emperor", the contract offered by Nike is only a few million more, but the difference is a millimeter, and the word "breaking 100 million" is more dazzling. Because Kyle has proven himself on the court, he can play super and lead the team out of the quagmire, and the superstar position is not far away, he is so valuable.
The two sports super brands are competing with each other, and the action of grabbing people is fast and accurate, and at this time they can't care about being reserved, and offer their biggest price, striving to eat Kyle's fat.
Outside, the Kyle brothers and Allens start a small meeting to weigh the pros and cons and discuss which one is better.
Adidas' price code is 90 million in six years, with an average of 15 million per year, Nike 100 million in seven years, with an average of more than 14 million per year. There are pros and cons when it comes to cash. In terms of additional rewards, the bonuses given by both sides are similar, and it is a draw!
The sales share of sneakers is 5%, which is the absolute highest price. And then the publicity efforts, Adidas is going all out to create a sales pitch for Kyle, and will praise him as the top brand, Nike will not have so many resources, and a Jordan can crush you, the top brand? Dream on! All right! Jordan is a subsidiary and has little to do with it, so what about Kobe? What about LeBron? It's clear that Adidas has the upper hand in this regard.
But at the same time, it also shows a problem, the influence of the two sides Nike far exceeds Adidas, and this is talking about basketball.
The main reason is that the market positioning and marketing strategy are different. Nike's main consumer groups are young, have purchasing power, like sports, love fashion, and pursue leisure. This group has the vitality of sports, the psychology of pursuing fashion, as well as the consumption potential and consumption strength, positioning this part of the people as the main body of market consumption can maximize market share and income. Their innovation in marketing lies in communication, using teenage idols such as Mike Jordan for communication, as well as designing Nike's dedicated games with video games. Nike focuses on sponsoring individual athletes, hoping for their success and role models on and off the field. From product management as the core to brand management as the core. In terms of sales channels, Nike attaches great importance to distribution and implements unified management of distributors.
The adidas brand includes different collections, each of which is given its own logo and targeted at different demographics. Since different series of products represent different sports styles, the products are very deeply catering to the consumption psychology of today's sports enthusiasts. Globally, Adidas' marketing strategy is mainly based on the strategy of close connection with world-class sports events, as well as the signing of endorsement agreements with gold medal sports teams and gold medal athletes to carry out the strategy of mutual promotion of the brand. Adidas focuses on in-depth brand segmentation, three major collections (such as clover) and channel expansion.
So with such a comparison, it is clear that Nike's positioning and consumer group are more suitable for Kyle than Adidas. The summary is that Adidas attaches more importance to Kyle and wants to support him to become the top brand and break Nike's hegemony in basketball, but their shortcomings are that the idol packaging operation is immature, whether the reputation can be based on the market, and whether it can change the strategy to completely stimulate the consumption of young people, is very unmarked. Nike can provide a better platform for Kyle, have a stable consumer base, and can establish Kyle's brand image faster, all of which they are familiar with. The downside is that will the market be saturated? Is the pitch big enough?
While the three of them are struggling, another big man arrives, Under Armour's boss Kevin Plank. After the three of them talked and talked about each other, they finally completed the transaction and shook hands.
Why didn't the two giants choose, but signed this sports brand that made a fortune in sports bras? You must know that Under Armour's strength in the United States can only be regarded as upper-middle, and its influence in the world can be ignored, compared with Nike and Adidas, there are two galaxies so far away!
The reason is very simple, the price given by Purran, Kyle can't refuse, the pie is too big, Kyle feels full just thinking about it!
First of all, the contract is 100 million for five years, and the additional reward is a quarter more than the other two giants, and his sneaker share is still 5 percent, and he will become Under Armour's top brand. The highlight of these little KS is to separate the sneaker part from the company and set up a subsidiary, and Kyle will get 20% of the company's dry shares. And that's not all, as long as Kyle plays super according to the contract, then he can get a three-hundredth stake in Under Armour, provided that he wins two scoring titles, or a regular season MVP or FMVP, and every time he wins this honor, he will get +1 shares. This is definitely a big crit, knocking out the three of them, giving money and then giving away shares, pie in the sky.
Although the market share of Under Armour's sneakers is very small now, it can only maintain normal operation and make a few million dollars a year. But a brand is a brand, they have their own channels and models, after Kyle becomes the owner, as long as he performs well on the court, then it can run rapidly, make a sign, attract other players to join, and when the time comes...! It's drooling just thinking about it.
And there's Under Armour's stake, which is no problem at all for Kyle, that's how confident he is.
The key to all problems is to see how Kyle plays, as long as he can play superstardom, all problems will be solved. But if Kelserv Street, then...! The market share of Ander sneakers will be completely sluggish, and it will also be on the street.
It's definitely a big gamble! But Purrank has no choice, others only see him with infinite scenery, in fact, his bitterness is all over his body. Since the company's IPO, it has indeed made a lot of noise, but the caves and caves are all over Under Armour's body.
Purrank invented the sports bra, which was their main source of income. But sports bras are different from sneakers and sportswear, the market is so big, so many sports brands are grabbing this share, they are now trapped to the point of sponsoring college teams, as for the momentum, it is all an illusion, the reason why he recruited, is that the company has fallen into a quagmire, and the money from the fundraising is not as big as imagined, I don't know how long it can last. Under Armour's life is not easy at all, it has reached the point where it can't be repaid, and if it can't break out of the encirclement, bankruptcy is possible.
Now he can manage so much, and the incomparable Kyle is his lifeline. Of course, he caught it, because the company had reached the point of life and death. As long as Kyle can make a play, that stake is definitely worth paying. (To be continued.) )