It just went from bad to worse for Nike.
The iconic sports equipment brand took a big risk by employing Colin Kaepernick for its new ad campaign. And it’s not just because Kaepernick – who hasn’t seen any professional action in over a year – insulted the American flag with his protest against police brutality. It’s also because the tagline of the campaign (“Believe in something. Even if it means sacrificing everything.”) is a direct insult to those who have served their country, and have given everything for it. (RELATED: After Nike Kaepernick Ad Outrage, Social Media Focuses on Pat Tillman.)
— Colin Kaepernick (@Kaepernick7) September 3, 2018
This morning we reported that Nike’s stock price took a hit shortly after the ad campaign launched. (RELATED: Nike Stock Goes Turbulent as Fans Boycott Brand After Kaepernick Promotion Announcement.) But now we’re learning that the repercussions of using Kaepernick to sell sweatshop-made sneakers are even worse.
The Wrap reports that Nike just lost billions in its market cap evaluation:
Nike just lost about $3.75 billion in market cap after announcing Colin Kaepernick as the new face of its “Just Do It” ad campaign. It’s the 30th anniversary of the iconic TV and print spots.
At the time of this writing, the sneaker company’s intra-day market capitalization was $127.82 billion. On Friday, that number had been $131.57 billion.
— TheWrap (@TheWrap) September 4, 2018
Now, there’s a chance this drop is temporary. Nike could weather this storm after the controversy.
But, then again, the NFL never did recover in ticket sales since the “take the knee” protest wore on throughout last year’s season. (RELATED: NFL Sunday Night Football Ratings Down After National Anthem Protests.) People remember their loyalties. And many in this country remain loyal to America and her flag, despite their own personal opinions toward football.
Should Nike continue to hemorrhage money, look for the company to drop Kaepernick like a bad habit.