Magic Johnson Chose Converse Over Nike And Missed A Chance To Earn $5.2 Billion: Nike Offered $1 For Every Pair Of Shoes Sold And 100,000 Shares Worth $0.18 At The Time

Magic Johnson is one of the biggest names to have ever played in the NBA, and very few players have enjoyed the hype he did coming into the NBA. Having led his college team to the NCAA championship over his rival Larry Bird in what was the most-watched college basketball game ever, Magic entered the league as the man of the moment and would go on to be Finals MVP in his rookie season as well.

Understandably, Johnson was a coveted property when it came to endorsements and there was a bit of a battle in terms of which shoe company he would sign with. Both Nike and Converse made offers to Magic and the decision came down to whether he would take stocks instead of cash, with the 19-year-old choosing Converse, who had offered him $100,000 a year at the time.

However, with the benefit of hindsight, it’s the offer that Nike put on the table that would have made him a lot more money had he chosen to go with them. The company offered Johnson $1 for every pair of shoes sold along with 100,000 shares in stock options, with the stock valued at $0.18 at the time.

When contextualized, considering that Nike stock is worth $134 today, Johnson would have $5.2 billion to his name had he decided to sign with the company. However, Converse was a bigger brand than Nike at the time, which adds some more context as to why Magic made his decision as well. 

Nike went on to explode with Michael Jordan, who did end up becoming a billionaire, thanks largely in part to his partnership with the shoe company. There were suggestions that Jordan’s rise and the hype around him and Nike were factors in souring his relationship with Magic a little in their early years, but the two went on to bond during their stint with the 1992 Dream Team. Also, considering that Magic is now worth an estimated $600 million, it’s safe to say he didn’t do too badly for himself either. 

Source: Yardbarker

Nike And Brooklyn-Based Company MSCHF Product Studio Inc Reach Settlement In Lil Nas X ‘Satan Shoes’ Trademark Lawsuit

ike and MSCHF have reached a settlement in the trademark infringement battle over a pair of modified sneakers that were being sold in collaboration with rapper Lil Nas X.

Nike filed the suit last week against MSCHF after it launched a pair of modified Nike Air Max 97s called the “Satan Shoes” with Lil Nas X. The shoes, priced at $1,018 and decorated with a pentagram pendant and a drop of human blood in the soles, quickly sold out.

The sneakers drew outrage online, and some called for a boycott of Nike, though the company had nothing to do with the shoe. Nike made a federal filing against MSCHF, and a judge granted a temporary injunction to halt the fulfillment of “Satan Shoes” orders.

A settlement was reached in which MSCHF will issue a voluntary recall on the shoes and offer a buy-back program for previously released modified Nike sneakers it called “Jesus Shoes,” Nike confirmed to NBC News on Thursday.

“If any purchasers were confused, or if they otherwise want to return their shoes, they may do so for a full refund,” Nike said in a statement, reaffirming that it had nothing to do with the shoes. “Purchasers who choose not to return their shoes and later encounter a product issue, defect or health concern should contact MSCHF, not Nike.”

MSCHF agreed to settle the lawsuit after realizing it “already achieved its artistic purpose,” David H. Bernstein, an attorney for MSCHF, told NBC News. The shoes were “individually numbered works of art that will continue to represent the ideals of equality and inclusion,” he said.

“With these Satan Shoes — which sold out in less than a minute — MSCHF intended to comment on the absurdity of the collaboration culture practiced by some brands, and about the perniciousness of intolerance” in partnership with Lil Nas X, Bernstein said.

The release of the “Satan Shoes” coincided with Lil Nas X’s latest single, “Montero (Call Me By Your Name),” and its accompanying music video. In the video, Lil Nas X, whose real name is Montero Lamar Hill, is seduced out of what appears to be the Garden of Eden, falls into hell and gives the devil a lap dance.

Lil Nas X defended the shoes as the single and the video got increased attention. The single debuted at No. 1 on the Billboard Hot 100 chart.

After the release of the song Friday, Lil Nas X put out an open letter to his younger self about coming out. The rapper, who is openly gay, explained that the song was about a guy he met last summer.

“I know we promised to never come out publicly, I know we promised to never be ‘that’ type of gay person, I know we promised to die with the secret, but this will open doors for many other queer people to simply exist,” he wrote.

The music video for “Montero” includes a voiceover with a similar message.

“In life, we hide the parts of ourselves we don’t want the world to see,” he says. “We lock them away. We tell them, ‘No.’ We banish them. But here, we don’t. Welcome to Montero.”

Source: NBC News

Nike Executive Of 25 Years Ann Hebert Abruptly Leaves Company After Report Reveals Ties To Sneaker Reselling Business Operated By Her Son

Nike Inc. executive Ann Hebert abruptly left the company following a Bloomberg Businessweek report about her son operating a business reselling sneakers and using a credit card in her name.

Hebert, who served as vice president and general manager of North America, departed Monday, effective immediately, Nike said in a brief statement. She had been in the role since last June, overseeing Nike’s sales, marketing and merchandising in the region.

The executive had spent more than 25 years with the Beaverton, Oregon-based company, which said it would announce a new leader for North America shortly.

Bloomberg Businessweek’s latest cover article explored the story of Joe Hebert, Ann’s son, a college dropout who makes a living as a sneaker reseller. Known to his customers as West Coast Joe, he started reselling streetwear in high school and now flips hundreds of thousands of dollars worth of shoes each month.

Ann Hebert didn’t reply to emailed questions for that report, but a Nike representative said the executive disclosed relevant information about her son’s business to Nike in 2018. The company said at the time that Hebert did not violate “company policy, privileged information or conflicts of interest.”

After Hebert’s departure, a spokesperson for Nike said the executive made the decision to resign. Hebert didn’t immediately respond to a request for comment on LinkedIn.

Source: Bloomberg