Chapter 1024: Selling Points

Choosing a shoe design is certainly not easy, but picking out a shoe you like is definitely fun.

Lu Ke and Curry stayed in the office for nearly an hour, communicating with the designers, discussing their preferences, and talking about their habits. They then made some modifications to the designs, and after confirming that both parties had reached an agreement, the morning’s work came to a temporary close.

After the meeting, Curry didn’t stay in San Francisco for long, as they would be hosting the Los Angeles Clippers tomorrow, and he still had regular practice this afternoon.

Compared to the NFL, an NBA season has a staggering 82 games. It’s not only long but also compact. Sometimes, there are three games in a single week, which is a serious test for every team and player. The NFL’s regular season is over, but the NBA’s regular season won’t end until April.

However, Lu Ke didn’t have time to rest either. Yesterday was the only day of rest between the regular season and the playoffs. Starting today, he had to get ready for the next game. After upgrading his ultimate cheat, he still had a huge amount of game film to review and analyze. There was no time to be lazy.

As he got back into the car and left the office, heading toward downtown San Francisco, Lu Ke thought back to Curry’s story with Nike. Because Chris had just brought up Yao Ming, Lu Ke now remembered that Yao Ming also initially signed with Nike but later switched to Reebok.

This incident was a hot topic of discussion in various media outlets.

In 1999, Nike, with its keen eye for talent, signed the 19-year-old "Little Giant" who was still playing in the CBA to a four-year, $200,000 contract. With Nike’s promotion, the Little Giant decided to enter the NBA Draft and was successfully selected as the first overall pick in 2002. Nike immediately released his exclusive shoes.

However, at the time, Yao Ming was a pioneer who was making history in North American sports. He was the first of his kind. Therefore, many of Nike’s executives were skeptical about whether the big man’s shoes would sell. There was already a lack of market for center shoes, and his contract was set to expire in just one year. Whether he would get a renewal was still an unknown.

So, even though the Little Giant was a Nike spokesperson at the time, he had virtually no advertisements. Nike was worried that if they invested too much in advertising and increased his popularity, they wouldn’t be able to renew his contract, and the initial investment would be wasted. So, they decided to take a cautious approach and wait and see.

In May 2003, the Little Giant’s contract with Nike expired, and both teams began negotiations. Nike offered a four-year, $1.6 million contract and promised to immediately release advertisements to increase his exposure after the signing. In fact, Nike had already offered this contract a year before, after the draft, but the Little Giant’s team decided to wait until the end of his rookie season.

But now, his rookie season was over, and Nike still didn’t have any intention of offering him a big contract.

At the time, Nike had just signed LeBron James to a seven-year, $90 million deal, and Kobe Bryant to a four-year, $45 million deal. They also had countless other big-name basketball players. In comparison, the Little Giant’s contract seemed insignificant, and Nike’s sincerity was simply not satisfactory.

The Little Giant’s team was hoping for an offer of between $1 million and $5 million per year, but the reality was only $400,000 per year, a huge difference. The Little Giant himself said that if the difference between Reebok’s and Nike’s contracts was less than $5 million per year, he would choose Nike, as Nike had helped him in the beginning.

Later, Reebok and Adidas both joined the bidding. Nike also realized the crisis and followed suit with an increased offer, but it was still lower than Reebok’s seven-year, $50 million deal.

However, this time, Nike showed enough sincerity and directly handed the contract to the Little Giant, who was almost ready to sign. But just before he signed, he noticed a serious problem in the contract details, which was the final straw.

The Little Giant agreed to Reebok’s offer, and Reebok also had a special clause. Over the next seven years, he had to appear in the All-Star Game at least three times. If he did, his contract would become a lifetime contract, just like Allen Iverson’s.

The Little Giant informed Nike of his decision. The Nike executives were surprised and immediately offered a third bid: a seven-year, $120 million contract without the clauses that Reebok had. But the Little Giant replied, "It’s not about the money. You can give me less money, but you have to be honest with me."

Everyone knows what happened next. The Little Giant became an important member of the NBA. His contract with Reebok also successfully turned into a lifetime contract. Even after Adidas acquired Reebok in 2005, they still maintained a good relationship with the Little Giant, which became a major misstep for Nike.

Of course, for Nike, they never lack superstars, even top-tier ones. They wouldn’t feel too bad about losing a Yao Ming or a Curry, because there’s always another superstar waiting. This also shows that Nike has countless options and holds the upper hand when dealing with players.

As a side note, tennis superstar Roger Federer had a long-term partnership with Nike, which started in 1994 when he was a teenager. Nike was with him every step of the way as he became the number one player in history. The relationship between Federer and Nike was inseparable, just like LeBron James’s lifetime contract with Nike. Federer even had his own registered trademark and an entire series of products at Nike.

However, in 2018, Federer left Nike after 24 years and signed a 10-year, $300 million contract with Uniqlo, which shocked the entire tennis world.

People once thought it was impossible for Federer to leave Nike, and for Nike to let go of Federer. Now, people realize that in business and sports, nothing is impossible.

So, if Lu Ke were to choose Nike, could he become an indispensable member of Nike’s superstar family?

Throughout his career, Lu Ke has always maintained a relatively calm attitude toward sponsorship matters. He wasn’t too worried about gains and losses because he knew that his only job was to go out on the field and play well. What’s meant to be will be, and what’s not meant to be will leave. He could just leave the off-field matters to Leigh.

But now, from Yao Ming to Curry, Lu Ke was thinking about this question seriously for the first time.

Lu Ke is the same as Yao Ming and Jeremy Lin. They are outsiders and intruders. On this continent made up of immigrants from all over the world, they have to constantly prove themselves and face constant challenges.

"Leigh, can I ask you a question?" Lu Ke asked. Leigh was a little surprised but put away his phone and got ready to listen seriously. "Why did Nike give up on Yao and Stephen?"

This was a completely unexpected question. Leigh adjusted his posture slightly to face Lu Ke. "Why are you suddenly curious about this?"

"I just talked with Stephen. Until Stephen signed with Under Armour, Nike still had a chance to keep him, but why did they give him up? It was just like the contract negotiation with Yao. They always had the upper hand, but they were reluctant to show more sincerity. Why?" Lu Ke asked objectively and calmly, like he was studying an academic topic, with no personal emotions involved.

"Hmm..." Leigh drew out the sound, as if he was thinking about his answer. "You know, that’s a very interesting question. In fact, I’ve been thinking about it recently because I need to be more prepared for the tough battle with Nike and Adidas."

A tough battle. Leigh said it in a half-joking tone, so it was clear he wasn’t too worried.

"I think there are similarities and differences between these two players, and you can find common ground with both of them. It’s a very interesting question indeed." Leigh thought about it seriously and organized his thoughts before giving an answer.

"Before we talk about them, do you know which position in the NBA has the best-selling shoes?" Leigh asked a question that Lu Ke, as a layman, couldn’t answer. He didn’t need an answer anyway, and he continued, "Nike’s most expensive shoe series have always been for wing players: Michael Jordan, shooting guard; Kobe Bryant, shooting guard/small forward; LeBron James, small forward."

"Their shoes are the best-selling ones. You can simply put it this way: Bryant is Jordan’s successor, and James is Bryant’s successor—at least in terms of Nike’s shoe market. So, they are Nike’s signature and the core of Nike’s market summary. When Nike chooses a new face, they are more inclined to choose the same type of player because their shoes sell."

If he were to explain it in detail, the ins and outs would be even more complicated. But Leigh still summed it up in a relatively simple way: For a brand, they ultimately need profit. A player’s image, ability, and performance are useless to them if they can’t be converted into profit.

In short, in a championship team, all the main players are champions, but that doesn’t mean every main player can get a top-tier contract. This is the rule of business.

"Nike didn’t give up on Stephen Curry. They chose Kyrie Irving over Stephen Curry. It’s that simple," Leigh said, explaining the whole story in one sentence.

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