The King of Bay Area
Chapter 1020: Custom Cleats
Chapter 1020: Custom Cleats
Before 2000, NFL brand sponsorships were a mixed bag. Several sports brands divided up the 32 teams like a cake. This business model was very unfavorable for the league, as it was impossible to standardize crucial aspects like uniform design, advertising, and quality control.
After careful consideration, the league decided to unify its sponsors. They had all 32 teams vote, and like any bid, they chose the final sponsor through a popular vote. At the time, Reebok, at the peak of its popularity, won with 30 votes and successfully secured exclusive sponsorship rights.
However, the league also had to consider the other competitors. The previous business model couldn’t be completely eliminated with a single stroke. Many brand sponsorship contracts hadn’t yet expired, and their expiration dates varied, making it difficult to unify them in a short period. So, the league made a concession.
Reebok signed a 10-year exclusive sponsorship contract that included jerseys and helmets, but other sponsorship brands were still allowed for gloves, shoes, and other equipment.
In 2005, Adidas acquired Reebok, and the brand’s popularity began to decline. In 2006, Under Armour and Nike’s market share gradually increased, and they joined the ranks of the official league sponsors. Of course, jerseys and helmets still belonged to Reebok. But this was the beginning of Reebok’s decline.
After that, the shrinking market share and declining brand influence caused Reebok to gradually lose its main market. When its contract expired in 2010, they didn’t renew with the NFL and announced that they would be shifting from professional sports to the sports and fitness market, completely changing their brand’s operational and development strategy.
As a result, the NFL began looking for a new sponsor. This led to a fierce competition between Nike, Under Armour, Puma, and Adidas. The battle was a stalemate, and a winner couldn’t be decided quickly. Although the league’s official jerseys were temporarily Nike products in 2010 and 2011, Nike still couldn’t secure the long-term sponsorship rights.
It wasn’t until 2012, during the offseason of the season that just ended, that Nike finally defeated Adidas and Puma, successfully winning the bid. They signed an eight-year partnership with the league, officially becoming the exclusive sponsor on the field. They also secured sponsorship rights for all external equipment, including jerseys, helmets, and gloves.
The only thing they missed out on was cleats.
But to control the market, Nike is trying to gradually squeeze other brands out of the cleat sponsorship market, with the goal of becoming the sole sponsor of the NFL in five to eight years.
For other competing brands, they must do everything they can to hold onto the cleat market. They need to get top endorsement contracts with big-name players and use cleats as their base to expand into other auxiliary equipment, such as Under Armour’s moisture-wicking shirts or Puma’s shoulder pads, to gradually increase their influence.
This is because if Nike manages to get all the top players in the league, there will be very little market left for the other brands. Their living space will get smaller and smaller, and they will eventually give up and leave Nike as the only dominant player.
For all 32 teams and players, they still hope and encourage the presence of competition. Only by having a fair and positive cycle can their income continue to increase in a market economy. Once Nike becomes the dominant player, the room for growth in sponsorship contracts will be very limited. It could even become a one-sided deal with Nike.
The league was aware of this, which is why they kept the sponsorship space for cleats and other apparel. This is also one of the reasons for the chaotic situation over the past two years.
Now, the battle between the brands has begun.
As Leigh said, after two consecutive seasons of top-tier, record-breaking performances, Lu Ke has now become the most commercially valuable player in the league. Even Peyton Manning and Tom Brady are temporarily a step behind. This is because the North American football market is already saturated, while the Chinese market is just opening up, which is Lu Ke’s unique advantage.
In the past year, Under Armour’s market share for football gear has increased by a full six percentage points, the highest increase among all sports brands. It has grown almost as fast as a rocket. They are now the third-largest football gear brand, behind Nike and Puma, while Adidas is currently lagging behind.
In the past two months, Rolex’s social media influence in the North American market has increased by 200%. Although this is not a direct impact on market share—as a traditional top-tier watch brand, Rolex’s market is already relatively stable, and a huge explosion in a short period is difficult—its brand influence has been further enhanced.
All of this can be directly attributed to Lu Ke’s influence. This young quarterback’s impact on the sport of football has exceeded all expectations, and he has endless potential waiting to be explored. No one can forget that Lu Ke’s hometown is still the most populous market in the world.
From Leigh’s perspective, the moves by Adidas and Puma were expected, and Under Armour’s move was a given. Now it’s up to Nike to decide what to do.
Regardless of whether Lu Ke wins the Super Bowl this season, his undefeated regular-season record is enough. Leigh can now sit back and relax.
In just a few words, Leigh couldn’t fully explain the entire market landscape, but Lu Ke still caught the key point. "Are you saying that because of the frequent moves by competitors, Under Armour is also making a move to renew my contract?"
Leigh nodded. "In fact, Under Armour has always been very proactive, and I have always had a good relationship with them. They even asked for my opinion on today’s specific plan and have a corresponding marketing plan ready. I just didn’t tell you because the regular season was still going on."
Lu Ke nodded to show he understood, but he didn’t ask any further questions.
This reaction was expected by Leigh. Lu Ke has never cared much about off-the-field matters, which is why Leigh never brought it up. Even if he had told Lu Ke, he would have ignored it. But today, the answer must be revealed, so he continued, "Under Armour is preparing to create a series for you."
"Oh," Lu Ke said softly, showing that he understood.
Leigh didn’t say anything more. It seemed that Lu Ke’s reaction was quite normal. But Vincent, sitting in the driver’s seat, couldn’t hold back. "Hey, guys, get a little excited! Under Armour is going to make a series for Bambi, just like Michael Jordan’s series or Kobe Bryant’s series! This is how you treat a superstar! As far as I know, there are no Brady or Manning series. This means, Bambi, you are the first football player in history to have your own series of cleats!"
Just repeating it made Vincent excited again.
Although Lu Ke has been making history with every step since he entered the league, Vincent still found it unbelievable when a historical moment actually happened.
Then, Vincent saw Lu Ke adjust his posture slightly, and just when he thought Lu Ke was about to get excited, he heard Lu Ke say, "Why would they make a football series? That doesn’t make any sense."
Vincent almost fell onto the steering wheel. His thought process... was not normal, right?
Football cleats are professional footwear and can only be used for football games. In fact, Nike and Puma both have cleats that are custom-made for players and designed according to their specific needs, but these are just custom-made cleats, not an entire series. The main reason is that the cleats cannot be worn in daily life. There is no Brady series or Manning series, not because they are not worthy, but because there is no need for it.
Basketball shoes are a different story.
Leigh, however, agreed seriously. "I think so too. But Under Armour has its own plans. They revealed a little information to me, but the specific details are still a secret and will be revealed today. I think they just want to make more money during the contract period."
This was obviously a joke. The main reason was likely that Under Armour was showing its strong support for Lu Ke in hopes of renewing his contract, not just to make a quick buck.
"Then let’s wait and see," Lu Ke said with a shrug, finally showing a bit of anticipation.
Vincent, sitting in the driver’s seat, kept looking at Lu Ke and Leigh in the rearview mirror, trying to speak several times, but he finally gave up in frustration. This was just too unfulfilling!
When they arrived at the studio, Vincent was still looking for a parking spot when two staff members appeared at the door. They waited patiently and, after Lu Ke got out of the car, greeted him with a smile. "It’s a pleasure to meet you. I’m Shaun Carlo."
"Of course I remember you, Shaun," Lu Ke said with a smile, shaking his hand and joking, "Why do you need to introduce yourself again? Is it because... I got you demoted?"
Shaun laughed happily. "No, no, of course not. I just heard about your visit and thought it would be great to greet you in person, so I came to join the fun. I can’t believe you still remember me. It’s my honor."
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