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NIKE losing their mojo...

Anyone who thinks Adidas is anywhere close to Nike in terms of brand value, market share, and/or popularity is only kidding themselves. Nike is far, far more popular and their brand is worth nearly 3 times the value of Adidas.

Nike owns 62% of the footwear market.
Adidas owns 5%

Nike owns 13% of the activewear market
Adidas owns 3% and is now behind Under Armor in this area.

I don't care what method of crunching numbers you're using...Nike has a stranglehold on the athletic industry no matter you slice it and its not close.
The only thing that matters in our discussion is (A) what kids want, and (B) money. adidas is paying U of L more money than Nike, or we'd be with Nike. And adidas profits are increasing at a much faster clip than Nike's which indicates there's more adidas money where ours came from. (That's the only reason the financial analysis matters, can adidas keep paying up...)

I've given you an opportunity to somehow base an argument for (A), but you're not bringing much other than logic and intuition. And that's fine because there isn't much hard data for some debates. All I know is our coach and Nike are located at opposite ends of a recruiting and operating continuum. His system doesn't lend itself to most five-star, Nike/shoe kids. And most of them don't want any part of Pitino regardless of our apparel contract. So it appears to me that if there's one basketball team who should be saying "to hell with the image, we'll take the money", it is U of L and Pitino. Which is exactly where we're at.

If you really want Nike so bad, my suggestion is to start a campaign about the coach. He can't win with a large % of five-star Nike kids, and he's already proven that--probably more to himself than us. My overall objective is to make money and win basketball games; everything else is secondary...
 
You were probably right about my financial acumen before, and you're just digger yourself a deeper hole now. YOU are the guy expounding incorrectly on the term "lagging" profits. Nowhere did I say go to an income statement and quote me a number. Nor do you evidently understand what the difference is between profit and what Enron was doing.

I didn't expect to be doing in-depth financial analysis in this space--that's the path you're trying to go down. I'll just leave you with this... There are only a few reasons to explain a significant increase in stock price: (1) an overall rise in the market, (2) takeover speculation, and (3) underlying profits. (1) is a rising tide that floats all boats, even one with holes like Nike. (2) is not applicable to any of the athletic apparel companies that I'm aware of. Which only leaves (3). It doesn't take a deeper understanding of corporate finance than that, which is good news for you!...

Perhaps you should understand terms before you use them. Lagging profits is not the same as lagging share price. Based on your nonsense above, you think that the increase or decrease in share price determines the strength of a company. I know of a company that doubled it share price in the past 3 months. It went from $.50 to $1.00. Given that rate of increase it must be stronger than Apple using your misguided logic.
 
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Zipp, I agree with your post. My problem lies with my preferences. I've always been a Nike guy and I would love for my university to be a Nike school because I would then probably own more UL stuff. For the most part I don't buy Adidas apparel unless its on clearance and I'm 35 years old and to my knowledge I don't think I've ever owned a pair of Adidas athletic or running shoes..so naturally I want my school to be associated with the brands I prefer.

My only argument was that, "hey, switching to Nike certainly won't hurt recruiting and in reality it can only help." There's a reason that literally every elite program in the country not named Louisville, Indiana or Kansas is a Nike program. But again...my problems lie with Rick, his recruiting strategy and his system.
 
Since 'tino and I are now mostly on the same page, I'm left with the task of discussing finance with a guy--knuckles-- who probably doesn't specialize in money as much as does sports. And at the risk of boring everyone else...

Profits are seldom discussed in anything but a relative context. Assume we have a publicly held company. There's profit GROWTH, profit MARGIN, and stock PRICE-to-earnings ratio as examples. How much profit a company makes in absolute dollars is almost meaningless without a way to scale those dollars. How much was earned last year? How much is earned per dollar of sales? How much is earned as a percentage of stock price?

Presenting only that Company A makes X dollars and company B makes Y is meaningless. It takes no consideration of the size of those companies. If X is a million and A is a billion dollar company, that's not too good. Y can be a $100K which might be blowing the cover off the ball if Company B is worth $200K. And you can generally look at the stock prices of A and B to tell which one is raking in profits, relatively speaking.

"Lagging" or unacceptable profit could be a million dollars if you're Company A. You don't know without a meaningful point-of-reference, typically LAST YEAR'S profit. Not the absolute dollars of another company of different size. That proves nothing. As Larry Kudlow is apt to say, "profits are the mother's milk of stocks." One goes up substantially, so does the other. Doc Ramsey sits back and calls that "trajectory".

Back to the adidas issue... As long as they're making enough money to pay U of L what they're paying--AND their profits are increasing significantly--they can afford to pay more, maybe much more. We have a contract renewing again soon, and we need more of that adidas money...
 
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I don't see an issue with zipp's argument here. I mean, if you're a U of L fan, you have Adidas paying you more $$ than any other company is willing to. Since 2012, you've been right there with everyone else as a legit FF contender (not to mention a NC and another FF.) 2016 we'll never know, but there is no reason to believe a run to at least the 2nd weekend wasn't in the cards (no pun intended.) So what's the upside to switching? Maybe you get some more NBA ready talent - and maybe that talent works with CRP. Maybe you don't get any NBA ready talent. Maybe Pitino really, truly embraces that L1C4 stuff and doesn't want any one and dones anyway?

Sometimes its better to be the big fish in a small pond.
 
Since 'tino and I are now mostly on the same page, I'm left with the task of discussing finance with a guy--knuckles-- who probably doesn't specialize in money as much as does sports. And at the risk of boring everyone else...

Profits are seldom discussed in anything but a relative context. Assume we have a publicly held company. There's profit GROWTH, profit MARGIN, and stock PRICE-to-earnings ratio as examples. How much profit a company makes in absolute dollars is almost meaningless without a way to scale those dollars. How much was earned last year? How much is earned per dollar of sales? How much is earned as a percentage of stock price?

Presenting only that Company A makes X dollars and company B makes Y is meaningless. It takes no consideration of the size of those companies. If X is a million and A is a billion dollar company, that's not too good. Y can be a $100K which might be blowing the cover off the ball if Company B is worth $200K. And you can generally look at the stock prices of A and B to tell which one is raking in profits, relatively speaking.

"Lagging" or unacceptable profit could be a million dollars if you're Company A. You don't know without a meaningful point-of-reference, typically LAST YEAR'S profit. Not the absolute dollars of another company of different size. That proves nothing. As Larry Kudlow is apt to say, "profits are the mother's milk of stocks." One goes up substantially, so does the other. Doc Ramsey sits back and calls that "trajectory".

Back to the adidas issue... As long as they're making enough money to pay U of L what they're paying--AND their profits are increasing significantly--they can afford to pay more, maybe much more. We have a contract renewing again soon, and we need more of that adidas money...

Classic Zipp in this thread. Says something inaccurate, someone else calls that out, he then says that he didn't say that, then diligently supports a new position that was different from what he first stated, then lectures on his new position while throwing in a few side-swipes at anyone who pointed out his original inaccuracies. Glad you stay consistent sir.
 
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Classic Zipp in this thread. Says something inaccurate, someone else calls that out, he then says that he didn't say that, then diligently supports a new position that was different from what he first stated, then lectures on his new position while throwing in a few side-swipes at anyone who pointed out his original inaccuracies. Glad you stay consistent sir.
"Classic zipp" is correcting anyone trying to put words in my mouth. Least of whom, a guy who doesn't know the subject very well...
 
LoL....watch out K1....or you will add to the stats of getting the last word in. o_O
 
Another "shoe" drops.

Yes, our players do not wear profits and stock charts. But 99 times out of a 100, follow the money. At the moment, that is NOT toward Nike and UA.

And I esp. feel that way when someone is signing a long-term deal to pay me money...
 
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