October 2, 2024

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Nike’s last quarterly earnings report led to a historic 20% drop in the company’s stock. Yesterday’s report requires more nuance. While company leaders see recovery on the horizon and are optimistic about their direction under new CEO Elliott Hill, investors are not yet convinced.

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

Nike Shares Drop 5%, CFO Says ‘Adversity Creates Sharper Focus’ [[link removed]]

Credit: Kirby Lee-Imagn Images

In the minds of Nike’s leaders, the recovery path is clear. Investors, however, are not convinced.

The athletic footwear and apparel giant reported a downbeat but largely expected set of earnings [[link removed]] Tuesday for its fiscal first quarter—detailing a 10% revenue decline to $11.6 billion the company forecast back in July. Earnings beat analyst projections, reaching $1.05 billion, down 28% from the comparable period last year.

Offering a somewhat different vibe than the meager fourth-quarter earnings report three months ago [[link removed]] that prompted a one-day, 20% drop in Nike stock, company CFO Matthew Friend said there have been some initial signs of optimism and “early wins” as the brand seeks to revive itself from a perceived lack of innovation, sharply heightened competition, and issues in its direct-to-consumer sales. Among those signs Nike cited were improved future orders of product in the running segment.

“Throughout our history, Nike has always faced pressure. Nike was born through adversity,” Friend said late Tuesday during an analyst call. “Today is no different. Adversity creates sharper focus, leading to innovation and new growth. We will continue to address the challenges head on.”

The earnings report marked the company’s first to the market since announcing plans to replace embattled CEO John Donahoe with Elliott Hill [[link removed]]—an executive shift taking effect later this month and one that has energized many both inside and out of the company.

Rough Reaction

After investors first appeared relieved that nothing in the latest report was materially worse than what was previously forecast, they then sent Nike shares down about 5% in after-hours trading. The company’s stock, even after recent gains related to Hill’s appointment, remains down more than 16% this year. Full trading on Wednesday is likely to bring further turbulence.

Neither Hill nor Donahoe was on the analyst call, but Donahoe was thanked “for all he’s done to move Nike forward.”

Guidance on Guidance

Because of the forthcoming transition to Hill, Nike said Tuesday it is withdrawing its prior investor guidance for its fiscal year 2025, which previously forecasted a sales decline of 4% to 6%. Instead, the company will provide forecasts on a quarter-to-quarter basis. An investor day previously scheduled for November is also being postponed.

“This provides Elliott with the flexibility to reconnect with our employees and teams, evaluate the current strategies and business trends, and develop our plans to best position the business for fiscal ’26 and beyond,” Friend said.

Nike’s second-quarter revenue is projected to largely maintain the first-quarter trend, and again be down by 8% to 10%.

WNBA Viewership Dips Without Clark, but Still Setting Records [[link removed]]

Gregory Fisher-Imagn Images

The WNBA is feeling the effects of Caitlin Clark’s elimination—but the league is still clearly growing.

ESPN announced that Sunday’s semifinal game between the Las Vegas Aces and New York Liberty, a rematch of the 2023 WNBA Finals, drew 929,000 viewers [[link removed]] during the 3 p.m. ET time slot on ABC, the league’s most-watched semifinal game in 22 years. While the figure is only half of the 1.8 million viewers the Indiana Fever and Connecticut Sun drew [[link removed]] during the previous Sunday’s playoff opener, it’s still more than any Finals game from last year.

Game 1 between the Sun and Minnesota Lynx garnered 654,000 viewers at 7:30 p.m. ET on ESPN. That’s a stark improvement over the non-Fever games from last Sunday, which aired on ESPN and averaged around 425,000 viewers. It’s also 39% more than the average viewership of the 2023 WNBA playoffs.

The NFL Effect

Sunday’s viewership numbers highlight the cannibalization of viewers driven by the NFL. Game 2 of the Fever-Sun first-round series Wednesday averaged 2.5 million viewers on ESPN, a WNBA playoff record for cable viewership. The second game of the other three WNBA first-round series—which was played on weekdays without an NFL game on-air—more than doubled its viewership compared to Game 1.

The second game of both semifinals series finished last night. However, the trend may not continue this time around as both games were bumped to ESPN2 to make room for the MLB playoffs.

WNBA Expansion Draft

While the playoffs are in full swing, the league announced Monday details to the 2025 expansion draft [[link removed]] as it welcomes the Golden State Valkyries next season.

The expansion draft, scheduled on Dec. 6, will allow the Valkyries to select from a pool of players who are on one of the other 12 teams. Each team can designate a maximum of six “protected players” who the Valkyries cannot select.

The WNBA last had an expansion draft in 2008, when the Atlanta Dream were added as the league’s 14th team. Back then, opposing teams were also able to protect six players from being drafted.

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Daktronics Brings Fireball to Miami Heat

Daktronics [[link removed]] has partnered with the Miami Heat to engineer, manufacture, and install the first fireball center-hung display at Kaseya Center in Miami, Fla.

The logo-shaped LED sculpture features 2,525 square feet of LED canvas at 2.5-millimeter pixel spacing to bring the Heat’s 3D logo sculpture to life in the middle of the center-hung configuration. The entire center-hung scoreboard features 11 individual displays totaling 55 million pixels and 7,440 square feet of digital canvas. That is 1.5 times the square footage of a basketball court and completely powered by Daktronics Show Control, an industry-leading control solution for live events. Altogether, the Kaseya Center is receiving 61 LED displays creating 11,000 square feet of digital canvas to provide an unforgettable live event experience [[link removed]].

Conference Realignment Continues: Here’s What We Know [[link removed]]

Kirby Lee-Imagn Images

The conference realignment arms race between the Pac-12 and Mountain West continued Tuesday, with each signing up a new future member [[link removed]].

The Pac-12 added Gonzaga, which currently competes in the West Coast Conference and does not have a football team, while the Mountain West added the University of Texas at El Paso from Conference USA. The moves, like the others made in recent weeks, will take effect in 2026.

Here’s where things stand now in those two conferences:

Pac-12: Boise State, Colorado State, Fresno State, Gonzaga (no football), Oregon State, San Diego State, Utah State, and Washington State Mountain West: Air Force, Hawai‘i (partial member), Nevada, New Mexico, San Jose State, UNLV, UTEP, and Wyoming

That gives both conferences seven full-time, football-playing members. Each needs at least eight schools to retain their FBS status—the Pac-12 by 2026, and the Mountain West by 2028. Other programs that could still be targeted [[link removed]] include the Mid-American Conference’s Northern Illinois and Toledo, the Sun Belt’s Texas State, and C-USA’s New Mexico State.

Efforts to become the top non–Power 4 conference will have major ramifications in the new 12-team College Football Playoff [[link removed]].

Power Couple

Amid college football’s evolving landscape, the Big Ten and SEC remain focused on asserting their own dominance over the sport.

The commissioners of the Big Ten and SEC, as well as the conferences’ athletic directors, will discuss a possible partnership in football scheduling [[link removed]] next week during meetings in Nashville, according to ESPN. The talks will follow the February formation of the Big Ten–SEC joint advisory group, comprising university presidents, chancellors, and athletic directors.

It was the Big Ten and SEC’s strong relationship that led to the CFP solidifying its next iteration [[link removed]], which will apply between 2026 and 2031.

Big Spenders Dominate Playoffs

FOS graphic

The Mets, Yankees, Astros, Phillies, Dodgers, and Braves were the six most expensive rosters in MLB this season, respectively—and they all qualified for the playoffs. However, the Padres were the only other playoff team whose payroll was higher than the league average of $167.5 million.

Four of the playoff teams were in the bottom third of the league in payroll, including the Tigers, who had the league’s fifth-lowest payroll, totaling about 31% of the Mets’ roster.

AWARD

Join us Oct. 16 at 1 p.m. ET for Future of Sports: Women’s Sports as we discuss the rise of women’s sports, the companies investing in them, how female athletes can capitalize on their own brand, media-rights opportunities, and more.

Register now [[link removed]].

FRONT OFFICE SPORTS TODAY Could Schefter Succeed Woj?

FOS illustration

A new name has emerged in the search for Adrian Wojnarowski’s replacement as ESPN’s NBA insider: Adam Schefter. Front Office Sports Tuned In columnist Michael McCarthy is hearing there is mutual interest for the top NFL reporter to become the network’s “Ultimate Insider.” He joins the show to explain what he’s been told from within ESPN.

Also, conference realignment continues with Gonzaga reportedly joining the Pac-12 and UTEP joining the Mountain West. FOS reporter Amanda Christovich breaks down the latest.

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

SPONSORED BY MAGNIFI

Expand Reach and Fan Engagement With AI

As the sports world expands, the ability to localize and regionalize video content is crucial.

Explore how AI is reshaping sports content in our upcoming webinar [[link removed]], Engaging Global Sports Fans With AI, presented by Magnifi and moderated by NBC Sports reporter and journalist Zora Stephenson.

This webinar will discuss how cutting-edge AI technologies enable sports leagues—from global giants like the NFL and NBA to emerging teams—to customize content for diverse audiences. Discover how AI can help expand your reach, deepen fan engagement, and maintain cultural relevance across borders.

Join the conversation Oct. 22 at 1 p.m. ET to learn about the potential of AI-driven localization and how to adapt content for different cultures and languages while prioritizing fan engagement.

Register now [[link removed]].

Conversation Starters Georgia-Alabama averaged 12 million viewers Saturday [[link removed]], the most-watched regular-season game on ESPN and ABC since 2017. UTEP revealed the newly renovated locker room of its football team, which cost $5 million. Check it out [[link removed]]. Mets owner Steve Cohen unveiled new renderings for an $8 billion casino and entertainment complex he wants to build beside the team’s home ballpark, Citi Field. Take a look [[link removed]]. Editors’ Picks Why Pete Rose’s Death Won’t Get Him in the Hall of Fame [[link removed]]by Alex Schiffer [[link removed]]Rose is still ineligible for the Hall of Fame despite his death. WNBA Finally Lays Out Expansion Draft Rules for Valkyries [[link removed]]by Alex Schiffer [[link removed]]The WNBA will have its first expansion draft in 16 years on Dec. 6. Charles Barkley Expanding Media Empire Even As He Sticks With TNT [[link removed]]by David Rumsey [[link removed]]Round Mound Media will produce more sports and cultural projects. Question of the Day

Have you watched a second-round WNBA playoff game?

YES [[link removed]] NO [[link removed]]

Tuesday’s result: Only 10% of respondents have unsubscribed from a regional sports network strictly because a team they followed was no longer competitive.

Advertise [[link removed]] Awards [[link removed]] Learning [[link removed]] Events [[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]]

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