While discussing the goal of a company, maximize shareholders wealth, in FIN101 this week a student asked a thinly-veiled political question: “what are your thoughts on the Nike-Kaepernick deal.” I connected Nike’s decision to the goal just discussed: maximizing shareholder wealth. True, Nike is down a little bit, but time will tell if Nike’s calculations were correct.
Another point to consider, but not mentioned in the Bloomberg article, is the fact that Nike is a global company. As such, the opinions of a few Trump supporters or right wing folks in the United States may be meaningless compared to additional revenue generated outside the United States. In short, on a global scale, there may be just a few loud and irrelevant people burning Nike products (instead of giving them to homeless veterans or something) and billions of quiet people buying more Nike products in support.
Nike Orders Rose in Four-Day Period After Kaepernick Ad Debut