Nike reported $11.4 billion in second-quarter revenue on Monday, beating analysts’ estimates of $11.25 billion. 

Of its total revenue, Nike’s brand revenue accounted for $10.8 billion, with Converse revenue growing 16% to $557 million.

Digital sales were up 12% year-over-year, jumping 40% in North America. Nike’s footwear division recorded $6.8 billion in revenue, apparel reached $2.6 billion, and equipment hit $382 million.

The company’s revenue in China and APLA (Asia Pacific and Latin America) declined, reportedly due to smaller inventories caused by factory closures during the pandemic.

The retailer launched a number of initiatives during the quarter.

• It announced “Mind Sets,” a program aimed at helping users prioritize their mental health.
• Following the reopening of its subcontractors, a Vietnamese government website said Nike plans to invest further in the country’s production.
• The company unveiled a partnership with Dick’s Sporting Goods, linking the pair’s membership programs and eventually offering in-person workouts.
• Nike filed a trademark hinting at metaverse sneakers.

What’s Next?

President and CEO John Donahoe said the company is “in a much stronger position today than we were 18 months ago.”

While still facing supply chain issues, Nike has already been busy in Q3. In just the last month, Nike asked the International Trade Commission to block imports of Adidas shoes for allegedly copying Nike’s technology, announced a full review of its media accounts, and acquired NFT producer RTFKT.

Reebok, purchased by Authentic Brands Group in August, will now be sold in thousands of JD Group stores thanks to a new agreement between the companies.

The non-exclusive deal comes after ABG announced plans to buy Reebok from Adidas for $2.46 billion — the acquisition is set to close in Q1 2022.

JD Group, which owns JD, Finish Line, DTLR, Shoe Palace, Sports Zone, Sprinter, and Size?, will sell Reebok in more than 2,850 stores in North America and Europe. 

Authentic Brands Group already has big plans for Reebok.

• ABG CEO, founder and chairman Jamie Salter previously stated that he expects Reebok to record more than $5 billion in 2022 global retail sales, with the goal to hit $10 billion in annual sales in the next five years.
• The company announced that SPARC Group, a joint entity between Simon Property Group and ABG, will be Reebok’s official licensee and operating partner.
• ABC signed a deal with Aditya Birla Fashion and Retail Limited earlier this month for exclusive distribution and sales rights of Reebok in India, Maldives, Nepal, Bangladesh, Bhutan, and Sri Lanka.

ABG Postpones IPO

Authentic Brands Group was originally planning for an IPO this year, but it announced last month that it would sell private equity stakes to CVC Capital, hedge fund HPS Investment Partners, and a pool of existing stakeholders instead.

The equity sale put the company at a $12.7 billion valuation. Salter says the company will aim for a new IPO date of 2023 or 2024.

Washington Football Team representatives are lobbying to build a new domed stadium in Northern Virginia, according to a Washington Post report.

Team officials have met with state legislators, Virginia Delegate Lamont Bagby (D-Henrico) confirmed to The Post. But a bill to move the plan forward wouldn’t be filed until the next General Assembly session in January.

The proposed domed stadium would be built in either Loudoun or Prince William County, and would include “a vast commercial and entertainment complex,” as well as plans for a business sector surrounding the stadium including retail and hotels.

Even if the project is approved, however, the WFT couldn’t move until its contract at FedEx Field expires in 2027.

Funding a New Stadium

The project would likely cost at least $2 billion, UNC-Chapel Hill associate professor Nels Popp told Front Office Sports.

It’s one of several plans for new stadiums across the NFL in recent years — all of which also tout hefty price tags. 

• The Buffalo Bills proposed a new stadium project that would cost about $1.4 billion.
• The Los Angeles Chargers and Rams share SoFi Stadium, which opened in 2020 and, cost a whopping $5.5 billion.

In May, Forbes estimated that the WFT is currently worth a total of $3.5 billion.

American investor group WAGMI United’s attempted foray into the English soccer arena has been rejected. 

Stefan Rupp, Chairman of League Two’s Bradford City AFC, declined an offer for WAGMI United to purchase the team, known as the Bantams.

The decision comes shortly after a Washington Post report stating the group was in “advanced stages” to purchase an unnamed English Football League team.

“A great deal has been aired publicly since the offer was made,” Rupp said. “This, as well as a number of factors which will remain private, has led me to this decision.” Rupp added, “the matter is closed.”

Led by former ESPN gambling analyst Preston Johnson and investor Eben Smith, WAGMI United includes:

• Philadelphia 76ers president Daryl Morey
• VaynerX chair Gary Vaynerchuk
• Social media personality Bryce Hall

New Revenue Model

The group intends to use NFTs as a core revenue generator while leveraging advanced analytics to help run the team.

The group doesn’t plan to offer fans securities in a team it might purchase, but hopes to transfer certain intellectual property rights to people who purchase their digital collectibles. 

They previously said their goal is to reinvest the proceeds into the team to ascend the English Football League system and eventually reach the Premier League. It now appears the group will have to find another avenue into England’s top soccer league.