August 16, 2024

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Nike is going through a rare rough patch, but shares have risen since billionaire hedge-fund manager Bill Ackman reinvested in the company. His presence, however, also begs questions about the influence he could wield within the storied sportswear brand.

— Eric Fisher [[link removed]], Colin Salao [[link removed]], and David Rumsey [[link removed]]

Nike Shares Surge As Bill Ackman Invests, Igniting Turnaround Hopes [[link removed]]

Nike

Shares in beleaguered sports apparel and footwear giant Nike are up sharply as billionaire Bill Ackman has reinvested in the company, sparking turnaround hopes after months of mounting problems.

A filing with the U.S. Securities and Exchange Commission showed Ackman’s hedge fund, Pershing Square Capital Management, holds about three million shares of Nike, a stake now worth nearly $250 million and representing about 0.19% of the company.

But more than a particular percentage, it’s possible that the presence of Ackman, his [[link removed]]estimated $9 billion net worth [[link removed]], and his prior, successful investment in Nike all suggest a rising confidence in the company and a potential ability to have a direct line to its management.

Shares in Nike rose 5% on Thursday, closing at $82.50 per share, and have increased 11% in the last five trading days. The recent spike is a reversal of sorts in a broader, year-to-date stock drop of nearly 23%—and a weak set of recent quarterly earnings [[link removed]] that included a downgraded future outlook and Nike’s worst one-day market performance since becoming a public company in 1980.

Activist Intent?

Shortly before the Pershing Square filing became public, Wall Street speculation had grown of the possibility of an activist investor pushing to get more involved in Nike’s operations. In 2022, Ackman [[link removed]]said he is pursuing a “quieter approach” [[link removed]] in the investment activity through Pershing Square after a long history of shareholder activism and short selling.

Still, there is little doubt that Ackman holds significant influence in the market, and his renewed Nike involvement will bear close watching.

Parallel Corporate Struggles

The situation also bears some similarity to Disney’s recent episode with billionaire activist investor Nelson Peltz. The ESPN parent company ultimately was able to soundly defeat Peltz’s bid [[link removed]] to acquire two board seats. But the lengthy debate over Disney strategy nonetheless provided a further spotlight on the company’s future direction, particularly that of ESPN, in the wake of unprecedented media industry disruption.

Nike, already in the midst of a $2 billion cost-cutting campaign [[link removed]] that includes multiple rounds of layoffs, has been battling ongoing issues both internally and across the sporting goods and footwear business—while also working damage control [[link removed]] for its MLB uniform debacle [[link removed]]. The company additionally has seen rising competition from upstart brands such as On and Hoka.

Intuit Dome Finally Opens As Clippers Hope for Fresh Start [[link removed]]

LA Clippers

The Clippers have finally escaped from their big brother—at least logistically.

The Intuit Dome, a $2 billion structure in Inglewood, Calif., officially opened [[link removed]] Thursday, beginning with two concerts from Bruno Mars. The privately funded arena will be the new home of the Clippers after the team spent the last 25 years sharing Crypto.com Arena, formerly Staples Center, with the Lakers.

Steve Ballmer, the former CEO of Microsoft who is one of the 10 richest people in [[link removed]]the U.S., funded the arena with the help of a 23-year naming-rights deal with Intuit worth $500 million. While the state did not pay a single dollar for the arena, Ballmer also pledged $100 million [[link removed]] to invest in Inglewood, with $80 million going toward affordable housing.

The Intuit Dome, which Ballmer hopes to make a “basketball mecca,” features electrical outlets at every seat, a double-sided halo board the size of an acre, T-shirt cannons that can target every seat, and perhaps Ballmer’s most famous declaration—a whole lot of toilets and urinals.

“Toilets! 1,160 toilets and urinals [[link removed]], three times the NBA average number of toilets and urinals!” Ballmer said last year. “We do not want people waiting in line. We want them to get back to their damn seats at the end of the half.”

The new arena was part of Ballmer’s vision when he purchased the Clippers in 2014 for $2 billion. At the time, he was criticized for overpaying for the franchise, but the team is now worth $4.65 billion [[link removed]], according to Forbes.

A Clippers Rebirth

When Ballmer acquired the Clippers, the team was in the middle of the best era in franchise history. But the Clippers have struggled to draw attention away from the Lakers in Los Angeles. The NBA team has yet to reach the Finals, while the Lakers boast the second-most titles in league history.

The Clippers’ roster isn’t exactly in the best position as it opens this new arena, with All-Star Paul George departing for the 76ers in free agency, while two-time Finals MVP Kawhi Leonard was replaced [[link removed]] on the gold-medal-winning Team USA roster.

But the move to the Intuit Dome at least allows the Clippers to literally separate themselves from the Lakers. The team also launched a rebrand [[link removed]] for this season, which means a completely fresh look when they welcome basketball fans to their new arena on Oct. 23 for their preseason homer opener against the Suns.

SPONSORED BY AT&T BUSINESS

Explore the Future of Fan Experiences

The 2024 AT&T Innovation Exchange [[link removed]] in Las Vegas offered a visionary look at the future of fan experiences in sports and entertainment.

Key figures, including L.A. Clippers Chairman Steve Ballmer and AT&T CEO John Stankey, unveiled how cutting-edge technologies—like AI-driven fan engagement and immersive VR—will transform arenas like the Intuit Dome. Panels featuring leaders from the NBA, Disney Parks, and Cosm emphasized the importance of blending innovation with emotional connection, ensuring fans remain at the heart of every experience.

The event also spotlighted the explosive growth of women’s sports, with the WNBA leading the charge. Discover how AT&T is enabling the next generation of sports fandom.

Read [[link removed]] the full story.

FRONT OFFICE SPORTS TODAY Sizing Up the USMNT’s New Coach

FOS illustration

The U.S. men’s national team reportedly has an agreement with a new coach: Mauricio Pochettino, formerly of Premier League giant Chelsea. We sit down with Yanks Abroad podcast host Will Balsam, who provides insight into the decision and what American fans should expect with Pochettino at the helm, as the U.S. looks forward to hosting the 2026 FIFA World Cup.

Plus, Colin Kaepernick has a coaching offer on the table, baseball’s biggest dumpster fire is slashing ticket prices, and FOS newsletter writer Eric Fisher has the latest on another NBA team ditching its regional sports network.

Watch, listen, and subscribe on Apple [[link removed]], Spotify [[link removed]], and YouTube [[link removed]].

ONE BIG FIG Did Babe Ruth Call Game?

Kim Klement-USA TODAY Sports

$30 million

The price that the Yankees jersey worn by Babe Ruth during the “called shot” game in the 1932 World Series could be sold for, according to Heritage Auctions [[link removed]]. The baseball legend hit a home run in the fifth inning of Game 3 of the Fall Classic at Wrigley Field to break a 4–4 tie, propelling New York to a win and an eventual series sweep.

Ruth, who had been jawing with heckling fans all game, pointed before smashing a home run. There’s been a longstanding debate as to whether Ruth was pointing at pitcher Charlie Root, the Cubs’ bench, or calling his shot by pointing past the wall. In 2020, an audio clip of Ruth’s teammate Lou Gehrig was discovered [[link removed]] in which he says that Ruth called the home run.

“He stands up there and tells the world that he’s going to sock that next one. And not only that, but he tells the world right where he’s going to sock it, into the center field stands. A few seconds later, the ball was just where he pointed, in the center field stands. He called his shot and then made it. I ask you: What can you do with a guy like that?” Gehrig said.

FRONT OFFICE SPORTS AWARDS

Only Three Days Left to Submit

College athletic departments support athletes across a multitude of sports and through a variety of verticals. From education services to training facilities, athletic departments uniquely impact college athletes.

Powered by Sports Innovation Lab, the Best College Athletic Departments Award uses data-driven methodology to identify which programs are leading in the space.

This is the last chance to submit [[link removed]] for this inaugural award. Don’t miss your opportunity to recognize your school. Deadline to submit is Aug. 18 at 11:59 p.m. ET.

Conversation Starters Despite having two years left on his contract, Robert Griffin III has been fired [[link removed]] by ESPN, according to The Athletic. NFL insider Ian Rapoport has some interesting thoughts on players using social media to gain leverage during contract negotiations. Listen to what he said [[link removed]] on Front Office Sports Today. Stadiums around the world—from Atlanta to Athens—were built specifically to host the Olympic Games. Now they’ve been abandoned. Learn why [[link removed]?]. Editors’ Picks Notre Dame Bans Men’s Swimming for Extensive Gambling, ‘Culture’ Issues [[link removed]]by Margaret Fleming [[link removed]]The swimmers reportedly made their own sportsbook to bet on themselves. Saudis Make North American Soccer Inroads With Concacaf Deal [[link removed]]by Margaret Fleming [[link removed]]It’s PIF’s first North American soccer investment. Brewers Owner Sued by Billionaire KKR Heir Neighbor for Stealing Sand [[link removed]]by Margaret Fleming [[link removed]]Mark Attanasio is accused of stealing sand from a Malibu beach. Question of the Day

Has your perception of Nike shifted over the past few years?

Yes, I’m more likely to buy other brands. [[link removed]] No, I still prefer Nike products. [[link removed]] I was never a regular Nike consumer. [[link removed]]

Thursday’s result: 67% of respondents said they did not enjoy alternate broadcasts like Nickelodeon’s presentation of NFL games.

Advertise [[link removed]] Awards [[link removed]] Learning [[link removed]] Video [[link removed]] Podcast [[link removed]] Sports Careers [[link removed]] Written by David Rumsey [[link removed]], Eric Fisher [[link removed]], Colin Salao [[link removed]] Edited by Matthew Tabeek [[link removed]], Or Moyal [[link removed]], Catherine Chen [[link removed]]

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