Duke University’s superstar basketball player Zion Williamson had what must be the most expensive wardrobe malfunction of all time. In front of millions of people watching at home – and none other than Former President Barack Obama sitting in the arena – Williamson’s Nike shoe split in half in the middle of a shot. It was bad enough that he injured his knee and had to sit out the rest of the game.
It’s a horrible outcome for Williamson and Duke, but it’s also a disaster for the Nike corporation. The next day its stock lost 1.7% of its value, which comes out to more than $1 billion. Nike’s entire thing is making sports equipment for elite athletes and regular people alike, so to have a high profile failure is unacceptable… including, it seems, to investors.
Though it appears the stock is bouncing back, any rally is based upon continued performance of their products. And if Williamson’s injuries turn out to be more severe than originally thought, it will be a problem that doesn’t go away.