Nike Is Betting Big on Olympic Glory to Revive Brand During Turbulence

Nike grew into a household name during the 1980s in large part because its partnership with Michael Jordan became one of the most successful brand-athlete connections in history.

Four decades later, Nike is in the middle of one of its most tumultuous periods, and it’s once again leaning on its athletes—this time to right the ship.

Nike cofounder Phil Knight sent a letter to its contingent of athletes in the Paris Olympics, stressing the importance of winning, according to Bloomberg.

“We need you. The world needs you. Now more than ever,” Knight wrote.

The company may, in fact, need its Olympic athletes—which include the likes of LeBron James and Sha’Carri Richardson (above)—to put its Swoosh alongside some gold medals as its stock has dropped by 30% this year, including around 20% in a single day in late June after it announced a fiscal-year decline.

This followed an announcement in February it would cut about 2% of its workforce, though a report by The Oregonian indicated the company has actually seen a reduction of about 5% of its staff in the fiscal year ending on May 31, 2024.

Rising Competition

One of Nike’s issues stems from the rise of other brands.

Smaller brands have taken advantage of holes in Nike’s strategy, such as On, the Swiss start-up that focuses on tennis and running to earn market share. The brand sponsors athletes like tennis legend Roger Federer and women’s world No. 1 Iga Świątek—who finished with a bronze medal in Paris—and world-champion runner Hellen Obiri.

Nike started as a running brand when it was founded by Knight in the 1960s, but it’s losing its grip on the space as brands like On, Asics, New Balance, Hoka, and even Adidas—who sponsors 100-meter and 200-meter world champion sprinter Noah Lyles—have put extra focus on the sport.

Winning Strategy

It’s no surprise Nike is putting the onus on its players. The company’s recovery plan is focused on regaining its brand equity. 

CEO John Donahoe said in June that the brand is “reinvesting $1 billion in consumer-facing activities,” even though it already spends about $4 billion annually on marketing efforts. 

“This Olympics … it will be our largest media spend,” Nike president of consumer, product, and brand Heidi O’Neill told Reuters in April. “This will be the most investment and the biggest moment for Nike in years.”

Some of Nike’s prominent athletes have won gold in Paris, including Scottie Scheffler in men’s golf and Zheng Qinwen in women’s tennis. However, a couple of notable names have had to settle for silver, including Richardson in the 100-meter sprint and Carlos Alcaraz in men’s tennis.