Nike stocks fell by $1.1 billion after its sports shoe pair broke open in the middle of a high-profile event. Zion Williamson, who was sporting the shoes suffered a knee injury and had to leave the NCAA game.
In a curious turn of events, a single failure of a sportsman’s shoe has set back the sportswear giant Nike by a whopping $1.1 billion in m-cap. How, you ask? Here’s all that happened:
In an NCAA basketball contest between Duke and North Carolina, Duke freshman Zion Williamson, a promising candidate in his sport, ripped open his shoes and suffered a knee sprain injury. His ripped Nike PG 2.5 shoes were immediately brought to notice by former US president, Barack Obama himself, who exclaimed that Williamson’s shoes broke. All that happened after is Nike’s nightmare.
????Nike’s stock has gone down 1.41% after Duke Basketball Star Zion Williamson’s Shoe fell apart and he sprained his leg. That is about $1.48 Billion LOST#ZionWilliamson #zion #duke #nike #stock #ncaa #injury pic.twitter.com/keHgqwAp1f
— The Culture Updates (@UpdatesCulture) February 24, 2019
Along with the sports star who had to go out of the game because of the injury, Nike faced the brunt of his fall on the field, as its stock fell 89 cents to $$83.95, leading to a market cap erosion of $1.1 billion. The company had said that it is investigating the shoe mishap and wished Williamson a speedy recovery. It added that the event was an “isolated occurrence”.
However, the damage that the company incurred is unprecedented. People questioned the sturdiness of their own Nike pair on Twitter. A user said: “@Nike I’m afraid to wear my Nikes now that I know they explode, although I weigh about half that of Zion Williamson… #ncaa #basketball #Nike
Glad I got the Lebron’s instead of the PGs”.
The Twitterati immediately called out the insufficient safety measures employed by the authorities. Majority of them expressed sympathy for Zion Williamson, and he had public support.
— ABC15 Arizona (@abc15) February 21, 2019
In sports this week, Zion Williamson was injured after his shoe broke during a game, what do you think this means for the image of Nike and the NCAA taking safety measures with equipment for athletes? #Replytweet #SMJourn
— Sophia Sena (@CornerSophia) February 23, 2019
There is no reward or potential multi-million dollar insurance plan that would justify Zion Williamson risking his health in the NCAA. #RealNews talent deserves to get paid. Time to hang up those ripped Nikes and prepare for the league. #RealNewsAlert #Duke #Zion #NBA pic.twitter.com/1Y66ynNy1F
— RealNewsAlert (@RealNewsAlert2) February 22, 2019