IS KAEPERNICK THE NEW FACE OF CAPITALISM?

While everyone is excited about Kaepernick being the new face of Nike, and rightfully so, we must realize the capitalism at play, and ask a pivotal question, what is Nike going to do regarding real change now that they stand to profit from Kaepernick’s Civil Rights protest?

But why would Nike attempt to profit from Kaepernick’s protest? Maybe supporting him and his protest was inevitable. After all, one of their biggest athletes in LeBron James has become more vocal on social issues. They can’t sway too far from his off-the-court mission, right? So despite the perceived controversy, why not sway towards it. As a publicly traded company (NKE), increasing shareholder value will ALWAYS be their number one priority. So odds are management wouldn’t make such a decision that could possibly threaten their revenue if they didn’t believe they could somehow flip it and capture the value they’ve sought to highlight and attach to their brand.

This is an interesting move by Nike considering Kaepernick is actively suing NFL owners for colluding to keep him out of the league, and they (Nike) just signed an 8-year extension to continue being the official sponsor for the NFL’s sideline apparel and game-day uniforms. If you’re Nike it sounds like a hell of a conflict. So why jump head first into this controversial issue?

A few reasons come to mind… 

#1 They truly agree with Kaepernick’s protest, and unlike most brands who are trying to avoid this issue, they realize their involvement at some point is inevitable, so why not be the first brand to get behind it?

#2 They realize the value and potential revenue that can be made from jumping behind this issue. They’ve calculated the risk or potential pushback by being the first brand to do so, and they’re willing to experience the short-term pain in return for long-term gain… or…

#3 Some weird combination of 1 and 2.

Whatever the reason might be, it’s done. Just remember, Nike is a public company (NKE). They don’t make moves without thinking about their shareholders, specifically how to increase shareholder value and ultimately maximize it. So while a publicly traded company in Nike has decided to recognize Kaepernick’s protest, I think we’re within bounds to question how genuine it is if they likely stand to profit from it, and more importantly… what are they going to do regarding real change specific to why Kaepernick decided to protest in the first place, police brutality and other injustices in the criminal justice system? Time will surely tell. 

What do you think? 

(On August 31, 2018, Nike’s stock closed at $82.20. Let’s see how their stock is doing in 3, 6, 9, and 12 months.)