Forbes recently shared a list of five publicly traded companies that have seen an increase in its stock since the NBA players and owners reached an agreement to end the lockout: Nike, Foot Locker, MSG, Under Armour, and Walt Disney. The article does include one caveat, however. Considering the NBA announcement came one day after Black Friday, they’re unable to determine how much of the increase was attributed to the most popular shopping day of the year versus fans’ excitement about the news. Since Forbes was unable to divide the pie, just keep that caveat in the back of your mind as you receive the information presented.
Nike (NYSE: NKE): On Monday, Nike’s stock shot up 5% which is close to its 52-week high. While Nike’s brand is virtually indestructible, it too would’ve suffered if the 2011-2012 NBA season was cancelled. Basketball fans’ purchasing behavior is largely influenced on seeing their favorite athletes run up and down the court in a game. Nike can pay millions of dollars to pay for Basketball Never Stops or Jordan Brand Love the Game ads, but the truth is, the best form of promotion comes from watching LeBron James’ swoosh flash by as he soars in the air and slams it down!
Foot Locker (NYSE: FL): Ok, so if Nike’s stock was up that means that retailers also had to benefit. Foot Locker’s stock rose 9%. The timing of David Stern’s announcement and Black Friday, were practically a dream come true for Foot Locker and other sport apparel retailers.
Madison Square Garden (NYSE: MSG): Although the Knicks haven’t won a playoff game in a minute, their owner, James Dolan never loses. As Forbes pointed out a while back, the Knicks are one of two NBA teams that ranked in the top 50 most valuable teams in the world. So, it’s only right that MSG would see a spike in its stock after the two sides reached an agreement.
Under Armour (NYSE: UA): On Monday, Under Armour was up 5.3% which I’m sure has lots to do with the Are You From Here spots featuring Brandon Jennings, Derrick Williams, and Kemba Walker that have been on heavy rotation. The same rules for Nike also apply here, with a season weeks away, basketball fans suddenly are in the market for some fresh new kicks.
Walt Disney (NYSE: DIS): Remember, Mickey is the owner of ABC and ESPN. And Christmas Day, which also happens to be opening day, ABC and ESPN will air four of the five games. In other words, Disney will profit from lots of ad dollars (ahem Nike and Under Armour) considering millions of people will be tuned into one of those channels from 2:30pm to the early morning of Dec. 26 and throughout the entire season which will extend into late June.
What’s interesting about these five companies listed is this, while it doesn’t include any dark horses, there is definitely a money trail to be followed. It’s as simple as the Six Degrees of Kevin Bacon game. As long as people are buying Nike’s and Under Armour, Foot Locker should continue to do well, and vice versa. Additionally, Walt Disney will continue to do well as long as Nike and Under Armour buy airtime on ESPN and ABC. And of course, the Knicks will have nationally televised games that air on Walt Disney owned networks. And this is how owners get richer off the BRI pie they fought so hard to covet. ESPN/ABC pays the NBA an over $400 million annual rights fee; which is then distributed among the owners aka James Dolan aka MSG. Boom.
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Bryant Gumbel’s David Stern Comments are Black and White Issue
Photo via Jemal Countess/Getty Images
At the closing of Real Sports with Bryant Gumbel last night, Gumbel issued some harsh words about the NBA Commissioner. He likened Stern to a “modern plantation overseer” for his handling of the negotiations. Gumbel accused Stern of treating the players like “boys”.
Whoa.
Anyone that’s even remotely familiar with race relations in this country is aware that referring to black men as boys is extremely condescending, disrespectful, and an open-invitation for an ass whooping. So for someone as respected as Gumbel to invoke slavery upon Stern is heavy.
Gumbel’s observation and opinion is literally a black and white issue. Nothing more, nothing less. He isn’t the first, nor will he be the last, to describe a sports commissioner’s relationship with his players as master-slave.
NFL Commissioner Roger Goodell was recently viewed similarly during his ongoing labor negotiations. It comes with the territory when you a) represent the owners, b) are a white male and c) preside over a league that is predominantly black.
When NHL Commissioner Gary Bettman was involved in his two labor disputes (1994-1995 and 2004-2005), he was never called a slave master. Instead, he was/is often referred to as a puppet master for his overly controlling ways. The public perception is that Bettman swindled the players out of well-deserved revenue and rewards. He also became unpopular for “Americanizing” hockey and compromising the integrity of the sport by entering warm weather markets.
The difference, however, is that only 3.7% of NHL players are black compared to approximately 85% of the NBA. Therefore a master-slave analogy would not have the same sting if applied to Bettman.
As long as the NHL remains light on blacks, Bettman will remain absolved of the slave master label regardless of how unfavorable fans view him. But, the other three major leagues will remain susceptible to such claims.  And, even if we’re fortunate to see a black person become the commissioner of a sports league one day, the narrative will shift from master-slave, to uncle tom because the commissioner will never represent the interest of the players. That’s simply not in the job description of a sports commissioner, but acting as an overseer and authority of the players are.
Based on Stern’s reputation for playing hardball and his deliberate shrewd leadership style, I doubt Gumbel’s remarks will have an impact on how Stern governs in the future. Stern’s made it very clear that he’s not in the business of making friends. He’s in the business of making money. And quite frankly, I don’t even want Stern to take his focus away from striking a deal with the players by addressing Gumbel’s comments.
Call me crazy, but something tells me if Gumbel was in Stern’s position, he wouldn’t necessarily treat the players as equals either. Just a hunch.
Check out the video and let me know what you think.
-S. Renee