Shares in beleaguered sports apparel and footwear giant Nike are up sharply as billionaire Bill Ackman has reinvested in the company, sparking turnaround hopes after months of mounting problems. 

A filing with the U.S. Securities and Exchange Commission showed Ackman’s hedge fund, Pershing Square Capital Management, holds about three million shares of Nike, a stake now worth nearly $250 million and representing about 0.19% of the company. 

But more than a particular percentage, it’s possible that the presence of Ackman, his estimated $9 billion net worth, and his prior, successful investment in Nike all suggest a rising confidence in the company and a potential ability to have a direct line to its management. 

Shares in Nike rose 5% on Thursday, closing at $82.50 per share, and have increased 11% in the last five trading days. The recent spike is a reversal of sorts in a broader, year-to-date stock drop of nearly 23%—and a weak set of recent quarterly earnings that included a downgraded future outlook and Nike’s worst one-day market performance since becoming a public company in 1980.

Activist Intent?

Shortly before the Pershing Square filing became public, Wall Street speculation had grown of the possibility of an activist investor pushing to get more involved in Nike’s operations. In 2022, Ackman said he is pursuing a “quieter approach” in the investment activity through Pershing Square after a long history of shareholder activism and short selling. 

Still, there is little doubt that Ackman holds significant influence in the market, and his renewed Nike involvement will bear close watching.

Parallel Corporate Struggles

The situation also bears some similarity to Disney’s recent episode with billionaire activist investor Nelson Peltz. The ESPN parent company ultimately was able to soundly defeat Peltz’s bid to acquire two board seats. But the lengthy debate over Disney strategy nonetheless provided a further spotlight on the company’s future direction, particularly that of ESPN, in the wake of unprecedented media industry disruption. 

Nike, already in the midst of a $2 billion cost-cutting campaign that includes multiple rounds of layoffs, has been battling ongoing issues both internally and across the sporting goods and footwear business—while also working damage control for its MLB uniform debacle. The company additionally has seen rising competition from upstart brands such as On and Hoka.

The Clippers have finally escaped from their big brother—at least logistically.

The Intuit Dome, a $2 billion structure in Inglewood, Calif., officially opened Thursday, beginning with two concerts from Bruno Mars. The privately funded arena will be the new home of the Clippers after the team spent the last 25 years sharing Crypto.com Arena, formerly Staples Center, with the Lakers.

Steve Ballmer, the former CEO of Microsoft who is one of the 10 richest people in the U.S., funded the arena with the help of a 23-year naming-rights deal with Intuit worth $500 million. While the state did not pay a single dollar for the arena, Ballmer also pledged $100 million to invest in Inglewood, with $80 million going toward affordable housing. 

The Intuit Dome, which Ballmer hopes to make a “basketball mecca,” features electrical outlets at every seat, a double-sided halo board the size of an acre, T-shirt cannons that can target every seat, and perhaps Ballmer’s most famous declaration—a whole lot of toilets and urinals.

“Toilets! 1,160 toilets and urinals, three times the NBA average number of toilets and urinals!” Ballmer said last year. “We do not want people waiting in line. We want them to get back to their damn seats at the end of the half.”

The new arena was part of Ballmer’s vision when he purchased the Clippers in 2014 for $2 billion. At the time, he was criticized for overpaying for the franchise, but the team is now worth $4.65 billion, according to Forbes.

A Clippers Rebirth

When Ballmer acquired the Clippers, the team was in the middle of the best era in franchise history. But the Clippers have struggled to draw attention away from the Lakers in Los Angeles. The NBA team has yet to reach the Finals, while the Lakers boast the second-most titles in league history.

The Clippers’ roster isn’t exactly in the best position as it opens this new arena, with All-Star Paul George departing for the 76ers in free agency, while two-time Finals MVP Kawhi Leonard was replaced on the gold-medal-winning Team USA roster.

But the move to the Intuit Dome at least allows the Clippers to literally separate themselves from the Lakers. The team also launched a rebrand for this season, which means a completely fresh look when they welcome basketball fans to their new arena on Oct. 23 for their preseason homer opener against the Suns.