Jun. 23 at 10:43 PM
$NKE needs to really scrutinize their capital allocation practices under the new CFO. Investors have been screwed for almost 5 years, as the share price dropped from an ATH closing price of
$163.63 on Nov 5, 2021 to ~
$42 today. Nike maintains close to 16,000 relationships with athletes and organizations globally at any time. Endorsement contract obligations totaled
$16.2 billion as of fiscal 2025 (with ~
$1.6B due within a year), reflecting a massive, multi-tiered portfolio. Nike’s current endorsement practices are high-risk, high-reward bets on cultural influence, brand aspiration, and sales lift. Much more focus must be given to shareholder returns under the new CFO.