Shares of Nike (NKE) are under pressure after the company announced that former NFL quarterback Colin Kaepernick, who sparked controversy by kneeling during the national anthem to protest racial injustice, will be one of the faces of its ad campaign for the 30th anniversary of its “Just Do It” motto. Many took to social media to voice their opinions, with some showing support but others going as far as completely destroying their Nike-branded apparel.
KAEPERNICK CHOSEN FOR NIKE CAMPAIGN: Over the weekend, Colin Kaepernick, the former San Francisco 49ers quarterback who sparked controversy for kneeling during the national anthem, tweeted that he is one of the faces of Nike’s “Just Do It” campaign. Not long after the announcement, the hashtags #BoycottNike and #JustBurnIt started trending on Twitter, with some fans even posting photos and videos of themselves burning Nike shoes and other gear. Kaepernick and Nike already had an endorsement deal, dating to when he entered the National Football League back in 2011.
However, it was set to expire soon and has now been extended, according to The New York Times. Kaepernick’s decision to first sit and eventually kneel during the national anthem has sparked criticism from Donald Trump as other players around the league joined in the protest against what they believe to be a racial injustice. The President has made the NFL a target for not firing players who refuse to stand and has even said fans should boycott the league. Nike, which is in a fierce battle with Adidas (ADDYY) to sign star athletes, has announced that Serena Williams and Odell Beckham Jr. are also among the names participating in the new campaign.
PRICE ACTION: In morning trading, shares of Nike have dropped almost 2.5% to $80.21.
