Blog Entry

NBA apparel sales to drop 50 percent in lockout?

Posted on: October 1, 2011 2:53 pm
Edited on: October 1, 2011 3:13 pm
 
Posted by Ben Gollivernba-lockout

In 2006, shoe and clothing manufacturer adidas signed on to be the official jersey and apparel supplier of the NBA, paying a reported $400 million over 11 years. Now roughly halfway through that agreement, adidas is about to hit some choppy waters thanks to the NBA lockout.

The Oregonian reports that while sneaker campaigns built around star players, like one launched by adidas for NBA MVP Derrick Rose this week, are expected to flourish like usual during the ongoing labor negotiations, industry analysts are predicting that sales of team apparel such as jerseys, shorts and other items will take a massive hit if the NBA cancels games during the 2011-2012 season.

The paper quotes two experts, Matt Powell and Marshal Cohen, on the subject. 
Apparel sales will be hammered by a lockout of almost any duration, a prediction that would be especially damaging to Adidas -- the league's official apparel provider. 

Look for 50 percent fewer sales of jerseys and other paraphernalia for the duration of the lockout, Powell said. 

And if the lockout lingers, the NBA, Nike, Adidas and everyone else in the basketball business will see declining sales across the board because of declining interest, Cohen said. 

In that event, Cohen said, "people aren't playing as much, not thinking about it as much." 
The NBA lockout has led to a league-mandated gag order with regard to contact between teams and current players, and team websites have been scrubbed of references to current players. The NBA's official store welcomes online visitors with the option of customizing a jersey of a fan's favorite team and does not have any images or links to players on its main page, although jerseys of current players are still available. Obviously this stands in stark contrast to usual practices, which would see highly marketable star players like LeBron James, Dwyane Wade and Kobe Bryant front and center.

While any NBA owner can calculate how much extra money he will take home if the Basketball-Related Income split is rejiggered or if games are missed and player salaries don't need to be paid, it's a much difficult proposition to gauge the longer-term financial impacts of a lost season. The secondary and tertiary spending on things like memorabilia aren't as important as ticket revenue or television revenue, but, still, tens of millions of dollars are at stake.
Comments

Since: Jan 28, 2011
Posted on: October 2, 2011 8:38 am
 

NBA apparel sales to drop 50 percent in lockout?

"until the lockout ends"?

I say give them a years worth of no player products for one year should send the necessary shot across the bow that fans have had it. Let them sit on the racks and pick them up next year in the dollar bin.



Since: Aug 20, 2008
Posted on: October 2, 2011 3:23 am
 

NBA apparel sales to drop 50 percent in lockout?

Well no duh!!! 



Since: Oct 20, 2008
Posted on: October 1, 2011 9:42 pm
 

NBA apparel sales to drop 50 percent in lockout?

Oooooh, you greedy fans.  Dwyane Wade and Mark Cuban are starving, and you want to boycott their $250 authentic jerseys and $180 shoes ?!?  Shame on you...



Since: Oct 11, 2009
Posted on: October 1, 2011 9:18 pm
 

NBA apparel sales to drop 50 percent in lockout?

Every fan should boycot all NBA and player products until the lockout ends.   Enough of supporting the greed.


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