How the Nike/Fanatics Behemoth Dominating—and May Be Ruining—Sports Merch as We Know It...

[tBBP]

I thought about putting this in one of the News threads, but honestly, this video from Baseball Doesn't Exist (one of THE BEST sports channels on YouTube, by the way) goes into so much detail and explains so many of the business variables behind the beasts that both Nike and Fanatics have become that it's probably worth it's own thread. It covers so much of what we discussed here, namely regarding the quality (or lack therof) of these newest MLB uniforms. It also explains how and why soooo many different jersey variants (that is, the NBA City and MLB CityConnect stuff, and whatever Nike et. al. invariably tries or is trying to do with the NFL) exist. Short translation: return on investment.

 

Among quick highlights is that somehow, Linsanity seemed to jump this trend off. But once you see some of the numbers involved (pay special attention from about the 7:00 mark onwards), you'll see the sheer size of Nike's investments into the NFL, NBA, and now MLB. I mean, they basically backed a convoy of Brinks and Garda Cash Logistics trucks up to the front doors of each of these leagues' head offices. (In case anyone hasn't yet seen it, this business sense also helps explain what otherwise would seem like the sacrilegious switch on the part of Germany from adidas to Nike cone 2027.)

 

Anyway, it's definitely worth a watch. Dude may win himself some type of journalism award off this one.

 

 

 

 

[infrared41]

5 hours ago, tBBP said:

I thought about putting this in one of the News threads, but honestly, this video from Baseball Doesn't Exist (one of THE BEST sports channels on YouTube, by the way) goes into so much detail and explains so many of the business variables behind the beasts that both Nike and Fanatics have become that it's probably worth it's own thread. It covers so much of what we discussed here, namely regarding the quality (or lack therof) of these newest MLB uniforms. It also explains how and why soooo many different jersey variants (that is, the NBA City and MLB CityConnect stuff, and whatever Nike et. al. invariably tries or is trying to do with the NFL) exist. Short translation: return on investment.

 

Among quick highlights is that somehow, Linsanity seemed to jump this trend off. But once you see some of the numbers involved (pay special attention from about the 7:00 mark onwards), you'll see the sheer size of Nike's investments into the NFL, NBA, and now MLB. I mean, they basically backed a convoy of Brinks and Garda Cash Logistics trucks up to the front doors of each of these leagues' head offices. (In case anyone hasn't yet seen it, this business sense also helps explain what otherwise would seem like the sacrilegious switch on the part of Germany from adidas to Nike cone 2027.)

 

Anyway, it's definitely worth a watch. Dude may win himself some type of journalism award off this one.

 

 

 

 

 

Excellent video.

 

Fun fact: The NFL is why Nike started putting the logo on the soles of their cleats. Back in the day, Nike had people whose job was to watch games and log how many times the logo appeared on screen. One of the "watchers", I guess, noticed how often the bottom of players feet were on screen during a football game and  logos on the soles of Nike football cleats was born.

[kmccarthy27]

23 hours ago, infrared41 said:

 

Excellent video.

 

Fun fact: The NFL is why Nike started putting the logo on the soles of their cleats. Back in the day, Nike had people whose job was to watch games and log how many times the logo appeared on screen. One of the "watchers", I guess, noticed how often the bottom of players feet were on screen during a football game and  logos on the soles of Nike football cleats was born.

That is some Disney Trash cans observation level stuff there. 

To explain:

According to legend, Walt Disney's obsession with trash cans came about after eating a hot dog. He noticed that it took him approximately 30 steps before he was done. He conducted further research by camping out on a park bench and noticing how many steps guests would take before they needed to throw something away. 

 

So when you go to a Disney park I think they have said every trash can is separated between 30 steps away from each other. 

[tp49]

I have to wonder why Antitrust hasn't looked into Fanatics yet.  Something here, and has for a long time, screamed unfair competition to me.

[kmccarthy27]

8 minutes ago, tp49 said:

I have to wonder why Antitrust hasn't looked into Fanatics yet.  Something here, and has for a long time, screamed unfair competition to me.

The way they structure their business is odd and shady.  A good number of these things you see are partnerships that fanatics does not completely own, and  then sell the rights back to Fanatics themselves, and they can use that excuse why they dont have a monopoly  because of that. 

 

Example.... Fanatics owns Topps, and they technically own the future NFL trading card rights and Topps can make NFL cards. However while it looks like Fanatics owns both, what it is is Fanatics owns Topps, but the NFL, NFLPA, and Fanatics joint own a subsidiary that owns the trading card rights for the NFL and have been "taking bids" and it happens that Topps won the bidding, and they can say in court that they were taking other bids but no one chose to and/or one gave them the right kind of deal based on requirements but Topps. Shady yes but that's how they will spin not having a monopoly.