It may not compare favorably with the intensity and skill level of the NBA Playoffs–the most recent adaptation of professional basketball that most fans of the sport have watched–but there is real live basketball being played these days. The NBA Summer League, held since 2007 in Las Vegas, is mostly a showcase for rookies, young guns, and fringe prospects, all hoping to impress some team enough to earn a spot in one of the most competitive sports leagues in the world. As one might expect, the play is sloppy, as haphazardly constructed teams compete in a setting that rewards individual excellence over solid team fundamentals. But after weeks and weeks of hearing breathless rumors about where LeBron James will play basketball in the fall–a process that culminated in The Decision, a one-hour live show broadcast on ESPN described by New York Magazine editor Will Leitch thus: never has being a sports fan felt so stupid–you can forgive NBA fans for their desperate desire to witness the actual sport they like, rather than interviews and rumor-mongering. And in no small perk, the NBA Summer League is the first professional competition Washington Wizards rookie John Wall is participating in.
The arrival of Wall, perhaps the most hyped prospect since LeBron himself, has piqued the curiosity of a not insignificant group of NBA writers and die-hards. But Wall is being watched most closely of all by Reebok, the shoe company which recently inked the rookie to a five-year, $25 million endorsement deal. This agreement instantly cast Wall as the face of the company’s basketball efforts, but it’s a move that some are questioning. Here’s one of those people with questions, AdAge’s Rick Thomaselli:
With all due respect to Mr. Wall, who ended up being the No. 1 overall pick by the Washington Wizards, that news elicited a figurative retweet of “WTF?” from many in the sneaker and sporting-goods community.
Observers are wondering why Canton, Mass.-based Reebok, after successfully readjusting its focus to target the women’s market, and making great gains with both its ZigTech training shoe and its Easy Tone sneakers, would get back into the basketball-shoe endorsement business when that sector of the sneaker world is losing market share.
[snip]
In the meantime, though, it has re-established itself in other ways. Reebok debuted in the U.S. in the 1980s as an aerobics/women’s footwear company and recently returned to those glory days with the ZigTech training line and the Easy Tone sneaker brand that the company says tones legs and buttocks while walking. Advertising Age reported last month that Reebok nearly tripled its market share in women’s footwear in the last year — jumping to 8% from 3.3% — prompting Herbert Hainer, CEO of Reebok parent Adidas, to say, “We are well on track to selling at least 5 million pairs of toning footwear in the U.S. alone this year.”
While this is undoubtedly good news for John Wall, now thrust into a leading role with Reebok instead of another face in Nike’s stable, the concerns over Reebok’s end of the deal are obvious. Can it really compete with Nike? The same Nike that own 93% of the basketball shoe market? No, of course, it can’t. And even the more modest goal of bumping up market share seems misguided. What’s realistic here? Wall is a good bet to thrive in the NBA. But even if he becomes an all-star, an MVP even, can one guy swing the market? There was one guy who did just that, but this was a special case. His name was Michael Jordan, and he was the greatest basketball player of all time who happened to come along at the perfect time to capitalize on that success.
This approach reminds me of investors looking for the next Google. There’s a reason that Google is special–a company like that just doesn’t come along that often. Similarly, looking for the next Jordan will most likely prove fruitless. Sure, there’s a small chance that Wall will become a Jordan-esque figure, but I wouldn’t bet on it. And I definitely wouldn’t bet $25 million on him becoming a player and a personality that just doesn’t come along that often. Better, in my mind, for Reebok to focus on what works for them, and, for the last fifteen years, basketball has not been it.
How do balance the desire to steal market share from a category leader and the need to protect and expand what you already own? What do you think of Reebok’s approach here?
No related posts.
