September 20, 2024

Read in Browser [[link removed]]

PRESENTED BY

Nike CEO John Donahoe is out, and longtime executive Elliott Hill is returning to lead the apparel giant amid tough competition, declining sales, and a falling stock. We explore what went wrong and what the change means for Nike’s future—including immediate market reactions after the move was announced.

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

Nike Replacing Embattled CEO John Donahoe [[link removed]]

Kirby Lee-Imagn Images

Nike is making a bold change after its long-running bid to overhaul its business made little progress.

The sports apparel and footwear giant said late Thursday that former company senior executive Elliott Hill is coming out of retirement to take the role of president and CEO, replacing the embattled John Donahoe.

Hill will take over day-to-day company leadership effective Oct. 14, while Donahoe will move into retirement. Formerly the company’s president of consumer and marketplace, Hill led all commercial and marketing operations for Nike and Jordan Brand.

Nike’s announcement said, “The Board and John Donahoe have decided he will retire from his role.” In the release, Donahoe admitted, “It became clear now was the time to make a leadership change.”

Hill had been retired since 2020. But some type of large-scale shift such as this had been almost inevitable for Nike, once a truly dominant brand capable of singularly shaping pop culture. Already in the midst of a $2 billion cost-cutting campaign [[link removed]], Nike has done multiple large-scale layoffs and seen a 24% drop in its stock while the Dow Jones soared to record highs. The company was embarrassed by its central role in the MLB uniform debacle [[link removed]] and challenged in unprecedented ways by upstart brands such as On and Hoka.

“Given our needs for the future, the past performance of the business, and after conducting a thoughtful succession process, the board concluded it was clear Elliott’s global expertise, leadership style, and deep understanding of our industry and partners, paired with his passion for sport, our brands, products, consumers, athletes, and employees, make him the right person to lead Nike’s next stage of growth,” said Mark Parker, Nike executive chairman.

Market Reaction

Investors applauded the news, sending Nike shares up by more than 9% in immediate after-hours trading Thursday. Donahoe had been in the post for nearly five years, and he will now transition to an advisory role through January 2025.

Donahoe, a former eBay executive, had particularly struggled of late with Nike’s direct-to-consumer business, a central part of his strategy. That component of the business briefly thrived during the COVID-19 pandemic, but more recently stagnated in the face of not only growing competition, but rising consumer pushback about pricing and product features.

The shift also arrives as the market is eagerly—and nervously—anticipating Nike’s next set of quarterly earnings, scheduled for release Oct. 1. Nike’s last report, a meager one back in July [[link removed]], prompted a company-record 20% plunge in Nike’s stock in one day. In that prior report, Nike also warned the company’s situation would likely get worse before it got better, projecting a fiscal-year sales decline of roughly 4–6% instead of a prior expectation of a gain.

Notably, Hill’s comment in the company announcement regarding his appointment referenced his plan to “deliver bold, innovative products”—something that had been noticeably lacking from Nike over recent years in the minds of many consumers and analysts.

Bears Stadium Push Stalls As Pritzker Repeats Funding Rejection [[link removed]]

David Banks-Imagn Images

The Bears opened the 2024 season with a dramatic, come-from-behind victory, and there’s new optimism surrounding the team on the field. But when it comes to the ongoing push to develop a lakefront stadium, the NFL franchise is still largely stuck.

Bears president Kevin Warren met again last week with Anne Caprara, the chief of staff for Illinois Gov. J.B. Pritzker, in an effort to jump-start the team’s bid for public funding toward roughly half the cost of a $4.7 billion domed facility [[link removed]]—something previously described by the state leader as “near impossible” [[link removed]] in the upcoming legislative term. Following that meeting, Pritzker offered yet another sobering assessment, saying “nothing has changed” with regard to the low appetite for public funding in the state for pro sports stadiums.

“We want Illinois businesses to do well,” Pritzker said. “This is a privately owned business. If I can find some way to assist, great. But right now, there is no building any new stadiums.”

The same situation applies to MLB’s White Sox, which are also trying to develop a new ballpark, in part with taxpayer funds, and are nearing a modern-era MLB record for losses in a season [[link removed]].

Warren has repeatedly made the case [[link removed]] that Chicago, the No. 3 U.S. media market, is losing out on hosting major events such as the Super Bowl, Final Four, and College Football Playoff [[link removed]] with a modern, domed facility. The Bears’ ongoing stadium saga remains one of the NFL’s most pressing, and closely watched, facility sagas.

Renewed Community Opposition

The Bears’ effort, meanwhile, is also facing a fresh round of pushback from a newly formed coalition of preservation and community organizations. Friends of the Parks, a group focused on protecting the Chicago lakefront, was an early opponent of the team’s development plans [[link removed]]. Now that body is working collaboratively with several other groups and community leaders to fight against the proposed Bears stadium.

“As great as it would be to have a domed stadium, Chicago should not put a ‘sold’ sign on our lakefront,” said Gin Kilgore, interim executive director of Friends of the Parks.

SPONSORED BY COLLECTORS

Get $25 Off Your First PSA Submission

Grade with the industry standard. PSA [[link removed]] is the leader when it comes to authenticating, grading, and preserving your most valuable sports and TCG cards. Today, backed by leading expertise and the industry’s best customer guarantee, more collectibles are submitted to PSA than any other grading service.

New to grading? For a limited time only, Front Office Sports readers will get up to $25 off [[link removed]] their first online grading order at psacard.com [[link removed]] or the PSA mobile app. Use code FOS25 at checkout [[link removed]].

WNBA’s Breakout Season: Record Viewership and Fan Surge Power 2024 [[link removed]]

The Indianapolis Star

On Thursday, the WNBA wrapped up a regular season that will be considered a bellwether for the league moving forward.

The WNBA had seen steady viewership growth over the past half-decade, but financial concerns still threatened its long-term survival.

But in mid-April, the league welcomed the 2024 draft class. The hope was that, following an NCAA women’s championship that was watched by more people than the men’s title game [[link removed]], the likes of Caitlin Clark, Angel Reese, and Cameron Brink could help carry over that fandom to the pro level.

And they did.

Spillover

It started at the draft, which was the league’s most watched in history with 2.45 million viewers [[link removed]], nearly four times the average viewership of the 2023 WNBA Finals.

Clark’s Indiana Fever debut on ESPN averaged more than two million viewers, besting any WNBA game in decades [[link removed]'s%20highest%20since%202001.]. The Fever played Reese and the Chicago Sky four times this season, and ESPN, CBS, and Scripps Sports’ Ion each had its most-watched regular-season game of the year from one of those matchups.

ESPN announced last week that it averaged a record 1.2 million viewers [[link removed]] for WNBA regular-season games across its platforms, up 170% versus last year. Perhaps more surprising is that ESPN’s pregame show WNBA Countdown, which averaged 508,000 viewers in 2024, up 113% from last year, drew more than the average viewership for WNBA games from last year, which was 453,900 across ESPN networks.

Ion, which started broadcasting WNBA games last season, announced Thursday a viewership increase of 133% versus 2023. It also reported the largest percentage of female viewers of any network airing WNBA games, with 50% of its audience ages 18–49.

The league’s ratings came at an opportune time as, together with the NBA, it secured a record $2.2 billion media-rights deal [[link removed]] with ESPN, NBC, and Amazon that takes effect in 2026. The total figure could end up as high as $3 billion [[link removed]] as the NBA secures deals with more partners, including Scripps Sports.

It’s Not Only on TV

The league has yet to release its overall attendance records, but based on data from WNBA statistics site Across The Timeline, the entire league was up 47% in attendance before Thursday night’s final six games [[link removed]].

Every single team is up double-digit percentages, led by the Fever, who finished the year averaging over 17,000 fans per game, nearly 320% more than last year. The top-seeded New York Liberty followed with 12,730 fans per game, up 63.7%. In June, the Las Vegas Aces became the first team in history to sell out every single home game [[link removed]]—though they placed just third in overall league attendance due to the 12,000-seat capacity at Michelob Ultra Arena.

Due to demand, the Aces, Atlanta Dream, and Washington Mystics moved home games against the Fever to arenas with a larger capacity—and sold out those contests. The Connecticut Sun also sold out their first game in Boston [[link removed]] against the L.A. Sparks.

FRONT OFFICE SPORTS TODAY Behind the WNBA’s Rise

FOS illustration

The WNBA postseason begins Sunday after its largest regular season ever. Host of The Ringer WNBA Show Seerat Sohi joins Front Office Sports Today to reflect on the monumental year and what we can expect in the playoff battles ahead.

Plus, we hear from Monica McNutt on her relationship with Stephen A. Smith, her viral moments in the past year, and whether the WNBA and NBA should stick together.

Also, the Sixers make a major development in the search for their next home, the NBA unveils new jerseys, and Formula One wants to go kid-friendly.

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

Jeremiah Smith Becomes Red Bull’s First College Football NIL Athlete [[link removed]]

Barbara J. Perenic/-Imagn Images

Front Office Sports keeps you updated on the latest NIL (name, image, and likeness) deals shaping college sports. Here’s who is cashing in now:

Athlete: Jeremiah Smith Sport: Football School: Ohio State Brand: Red Bull

The deal: Smith, a true freshman who already has 211 receiving yards and three touchdowns after two games with the Buckeyes, is becoming the energy drink company’s first college football endorser. “Off week, got my wiiings,” he posted in a video on his social media channels [[link removed]] announcing the partnership, which a source tells Front Office Sports is for multiple years.

The 18-year-old receiver joins Red Bull’s NIL roster, which includes women’s basketball players MiLaysia Fulwiley (South Carolina) and Mikaylah Williams (LSU); volleyball players Bergen Reilly (Nebraska), Madisen Skinner (Texas), and Olivia Babcock (Pitt); and Boston College hockey player Will Smith.

SPONSORED BY LAVER CUP

Laver Cup, Federer, and Future of Tennis

Ahead of the Laver Cup this week, chairman Tony Godsick sits down with Front Office Sports editor-in-chief Dan Roberts.

Roberts and Godsick discuss what makes the tournament the “ Ryder Cup of Tennis [[link removed]],” how it’s evolved, and what to expect from this year’s event and beyond.

Plus, a conversation about what it’s been like to represent Roger Federer as he moved from Nike to Uniqlo and On Brand, as well as why tennis is strongly positioned for sustained success [[link removed]] in the U.S.

Watch the full interview [[link removed]].

Conversation Starters Kirk Herbstreit is splitting his time between New York, Ohio, and Oklahoma for plenty of football this weekend. Check out [[link removed]] his globe-trotting itinerary. The WNBA needs to pick one more city for an expansion franchise to get to 16 teams. Where should the league go next [[link removed]]? Following Adrian Wojnarowski’s retirement from ESPN, Front Office Sports media insider Michael McCarthy says Shams Charania and Chris Haynes will likely be considered as a possible replacement [[link removed]]. Editors’ Picks F1 Drivers Annoyed by Boss’s Ask to Clean Up Dirty Words [[link removed]]by Margaret Fleming [[link removed]]Lewis Hamilton disapproved of the “racial element” to the comments. Gag Order Could Complicate Brett Favre’s Congressional Testimony on Welfare Scandal [[link removed]]by A.J. Perez [[link removed]]The Hall of Fame QB is set to appear before Congress next week. Several Schools Are Interested in Joining the Mountain West [[link removed]]by Amanda Christovich [[link removed]]Sacramento State and New Mexico State are among those looking to move. Question of the Day

Did you watch more WNBA coverage this season than you did last year?

MORE [[link removed]] SAME [[link removed]] LESS [[link removed]]

Thursday’s result: 54% of respondents feel overwhelmed by the conference realignment taking place in college football.

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

If this email was forwarded to you, you can subscribe here [[link removed]].

Update your preferences [link removed] / Unsubscribe [link removed]

Copyright © 2024 Front Office Sports. All rights reserved.

460 Park Avenue South, 7th Floor, New York NY, 10016