Why Small Brands Are Poaching Athletes From Big Names Like Nike
After four years with Nike, the US tennis star Sloane Stephens is the latest to defect to a small, more athleisure-focussed apparel brand after an endorsement deal with a big name sportswear brand.
KEY INSIGHTS
- Sofia Kenin, Simone Biles and Allyson Felix are among the top sports stars who have become ambassadors for smaller brands in recent years.
- To sweeten endorsement deals, brands often offer sports stars a greater say in product design or promotion.
- In turn, a sports star can also help get these brands in front of consumers without having to rely so heavily on increasingly costly social media ads.
Tennis player Sloane Stephens is leaving the biggest name in sportswear behind.
After four years with Nike, the 2017 US Open champion has signed a new apparel endorsement deal with FP Movement, a sister brand to Free People that sells sportswear staples like track shorts and leggings as well as athleisure-friendly pieces such as onesies and fleece jackets. She has worked with Nike since 2018, and previously worked with Under Armour for seven years.
With the move, Stephens joins a growing list of mostly female athletes that are leaving Nike and other major sportswear brands to team up with smaller labels: 2020 Australian Open champion Sofia Kenin left Fila for FP Movement at the start of the year. Olympic gymnast Simone Biles ended her Nike partnership in favour of Gap-owned Athleta. Track star Allyson Felix, with 11 Olympic medals, left Nike in 2017 after criticising the sportswear giant for not doing enough to support pregnant athletes. She signed with Athleta two years later, and co-founded her own brand, Saysh, in 2021. American steeplechase athlete Colleen Quigley left Nike in 2021 for Lululemon.
The trend represents a new phase in female athletes’ decades-long quest to receive the same public recognition and financial compensation as their male counterparts. Traditionally, signing a deal with a giant brand was seen as an athlete’s ultimate goal, and large corporations like Nike have stepped up their investment in women’s sports in recent years. But athletes on a big company’s payroll can find themselves competing for resources and attention. Brands often sign players after early career successes, but interest quickly wanes if they don’t continue hitting the same highs.
“If you’re with one of those companies, and you’re not the number one athlete, if you’re not LeBron, the chances of you getting used all the time and people seeing you visibly are pretty low,” Stephens said.
Athletic wear and athleisure sales have exploded, and McKinsey projects sales will continue to grow 8 percent to 10 percent annually through 2025. Whether it’s Lululemon and Athleta, newer brands like Outdoor Voices, Girlfriend Collective, or fast-expanding retailers like Vuori or Alo Yoga. Not all have yet expanded into traditional athlete endorsements, but they have arguably built up enough of a reputation for top athletes to see them as a viable alternative.
Partnering with a smaller brand like FP Movement can offer athletes a greater role in the creative process, whether it’s designing their game-day ensembles or dreaming up the campaigns they’ll star in.
“We’re very keen on seeing what [Stephens] is interested in and what she gravitates to from a fashion perspective, and how that starts to impact what we design long term,” said Jack Reynolds, chief marketing officer at FP Movement.
To sweeten the deal, these brands often offer athletes specialised attention on causes important to them: With her deal with with FP Movement, Stephens will also work with its non-profit partner Girls, Inc., a female-empowerment-focussed charity. Some can even come with equity in the business. And in teaming up with brands that are more directly marketing to women, there’s less concern that they’ll be sidelined for male sports stars.
“Athletes just want to have more say in the creation of what they’re wearing,” said Alexandra Grayson, basketball marketing director at sports marketing agency Octagon. “They have an opportunity when working with these other brands to really have an impact on the products, the marketing, the campaigns, and see a business grow.”
There’s more talent to court, too, now that college athletes in the US have the freedom to ink brand deals of their own, thanks to a number of states passing laws that allow them to profit off of their name, image and likeness, which was previously forbidden by the NCAA.
Smaller brands sign athletes to signal that “‘we’re upping the game, we’re not just a pair of leisure pants, but we’re also good enough for the best athletes in the world,’” said Doug Shabelman, chief executive of Burns Entertainment, a marketing agency specialising in celebrity partnerships.
A sports star can also help get a brand in front of consumers without having to rely so heavily on social media ads, which have become more expensive and less effective since Apple’s 2021 privacy changes.
And while an influencer may post a selfie wearing a brand at their daily yoga class, a world-class athlete sporting a logo at a major sporting event offers a different level of gravitas.
“We’re still a fairly small brand, certainly in terms of competitors in the athletic wear realm,” said Reynolds. “So to bring in [marquee athletes] to open up the brand to new audiences is also a key growth focal point for us.”
WWE Shares Skyrocket As Ex-CEO Vince McMahon Returns To Board, Seeks Possible Sale
World Wrestling Entertainment (WWE) shares jumped more than 18% -- one of the largest intraday surges since June 2021 -- as the company announced founder Vince McMahon, who retired last year amid allegations of sexual misconduct, will return to the board as the company explores a possible sale.
"Today, we announce that the founder of WWE, Vince McMahon, will be returning to the board."We also welcome back Michelle Wilson and George Barrios to our Board of Directors. Together, we look forward to exploring all strategic alternatives to maximize shareholder value," Chairwoman & Co-CEO Stephanie McMahon, Co-CEO Nick Khan and Chief Content Officer Paul Levesque, wrote in a statement.
Shares of Stamford, Connecticut-based WWE skyrocketed to as high as $85.89 per share -- nearing an all-time high.
Nearly 20% of WWE's float is short.
Maybe a good ole' squeeze.
McMahon stated that he wouldn't have an active role in day-to-day operations:
"WWE has an exceptional management team in place, and I do not intend for my return to have any impact on their roles, duties, or responsibilities."
WWE added more color about maximizing shareholder wealth in a possible sale:
In connection with the change in the composition of the Board of Directors and in cooperation with Vince McMahon as majority shareholder, the company intends to undertake a review of its strategic alternatives with the goal being to maximize value for all WWE shareholders. There is no assurance that this process will result in a transaction.
Here's what Wall Street analysts are saying about WWE (courtesy of Bloomberg):
MKM Partners analyst Eric Handler (buy, PT $90)
- If McMahon attempts to push for a sale the firm will be an "attractive asset" that could be of interest to a sizable bidding pool of major players like Comcast, Fox, Disney, Amazon and Netflix
- "There is a scarcity of independent content creators that can match the global popularity and size of WWE" *
Guggenheim analyst Curry Baker (buy, PT $94)
- WWE could be attractive to several larger media platforms and companies
- Optimistic about WWE's renewal prospects — the US rights for RAW and SmackDown are up for renewal this year
- While the content is relatively cheap to produce, the value of sports rights continue to rise
Crypto exchange Huobi to cut 20% of its staff as ‘bear market’ strikes
Other digital asset companies including Silvergate and Genesis also announced job losses this week
Crypto exchange Huobi Global has revealed plans to cut hundreds of jobs amounting to about a fifth of its workforce in the wake of last year’s implosion of competitor FTX.
Huobi, which is one of the world’s most prominent digital asset companies and was founded in China, said the job cull came as a result of the “bear market” in crypto, adding that it would seek to maintain a “very lean team”.
Describing the job cuts as “personnel optimisation”, the company said the move was taken “to implement the brand strategy, optimise the structure [and] improve efficiency”.
Huobi is the third leading crypto player this week to announce a reduction in headcount after a painful 2022 in which several big firms collapsed and the value of tokens such as bitcoin tumbled. Silvergate, a crypto-focused US bank, said on Thursday it would shed about 40 per cent of its staff, while digital asset lender Genesis is cutting 30 per cent of its employees.
Justin Sun, Huobi Global’s advisory board member and a Chinese crypto entrepreneur, told the Financial Times that the job cuts would begin as early as next month and that “most” of the losses would happen in Asia. “We are gradually reducing our concentration in Asia although the region will remain an important market,” he said.
The announcement came at a time of rising concerns about trading platforms such as Huobi and industry leader Binance after the implosion late last year of Sam Bankman-Fried’s FTX empire.
Huobi’s in-house token called “HT” has dropped 10 per cent since Wednesday and by about 25 per cent over the past month, according to data provider CryptoCompare. Sun, also the founder of crypto blockchain Tron, said he was not concerned about the risks of a big jolt of withdrawals at Huobi, such as the one that ultimately pushed FTX over the edge, and said the exchange could handle clients cashing in tokens.
“We are not in financial trouble,” Sun said in a voice message, explaining that Huobi’s current performance “does not match” its operational objectives because of redundancy and market deterioration, adding that it was “mostly done” with the reduction plans. But he was unable to say whether there could be another round of job cuts. He also said that employees’ year-end bonuses had been reduced.
Sun added: “The [job cuts] have nothing to do with FTX.”
While Sun and Huobi’s statement did not confirm the number of employees affected, Sun told the FT in October that Huobi had about 1,600 staff members globally.
In his October interview with the FT before FTX’s collapse, Sun struck a more bullish tone as he said the company was planning to expand its workforce to roughly 2,000 people as it recently hired employees in Kenya and Nigeria. He also said the company was looking to move its headquarters from the Seychelles to the Caribbean.
Huobi is ranked as the world’s 16th largest crypto exchange based on daily trading volume with a 24-hour trading volume of about $340mn — about 4 per cent of Binance’s volume — according to CoinMarketCap. The platform was number two globally but slipped following China’s ban on crypto transactions in 2021, hammering its biggest market at the time.
FTX’s disgraced founder Bankman-Fried held talks with Sun in November as he looked to save the now-bankrupt platform by seeking a capital raise in an attempt to avoid the company’s collapse.
EPA Proposes New Air Pollution Rules to Limit Soot From Power Plants, Vehicles
Compliance could cost industry up to $390 million annually but save 4,200 lives a year, agency says
WASHINGTON—The Biden administration on Friday proposed tougher rules on airborne soot produced by factories and vehicles, saying the measures would save 4,200 lives annually and billions of dollars in healthcare costs when fully implemented in 2032.
The proposal from the Environmental Protection Agency targets tiny particles of airborne pollutants that can penetrate the lungs and cause human health effects, including asthma, heart attacks and premature death.
EPA officials said compliance with the new rules could cost industry up to $390 million annually beginning in 2032.
“This proposal will help ensure that all communities, especially the most vulnerable among us, are protected from exposure to harmful pollution,” EPA Administrator Michael Regan said. “This proposal to deliver stronger health protections against particulate matter is grounded in the best available science.”
The proposal now goes out for public comment for the next 60 days, and the EPA said it would issue its final soot rule in 2024.
Agency officials came up with their estimates of lives saved and health benefits by reviewing studies on the health effects of air pollution that were compiled in a 328-page scientific assessment and a 685-page policy assessment, both of which were released in May 2022.
The EPA estimated that, when fully implemented in 2032, the tougher air measures will result in savings of an estimated $43 billion a year because of fewer trips to hospital emergency rooms, less money spent on medication, fewer lost work days and fewer people prematurely dying.
Mr. Regan’s announcement came after EPA scientists reviewed years of scientific studies and reversed the decision by his predecessor in the Trump administration, Andrew Wheeler, who in 2020 decided to keep standards that had been in place since 2012.
Chemical, oil and other industry groups that will pay the cost of implementing the higher standards had argued for keeping particulate standards at existing levels.
“The current particulate matter standards are effective and will continue to build on significant improvements in air quality while protecting public health,” said Will Hupman, vice president of downstream policy at the American Petroleum Institute.
The U.S. Chamber of Commerce said the new standard will be difficult to achieve.
“The United States has some of the best air quality in the world, thanks to steady reductions in contributors to particulate matter emissions over the last decade—some by over 75 percent,” said Chad Whiteman, vice president of environment and regulatory Affairs at the Chamber’s Global Energy Institute.
Environmentalists and public-health advocates supported tougher standards, saying they would benefit children with asthma, the elderly and minority communities, which are disproportionately affected by soot.
Susan Anenberg, associate professor of public health at George Washington University, said air quality in the U.S. has improved significantly since the passage of the Clean Air Act in 1990, “but we still are dealing with air pollution levels that are unhealthy to breathe,” she said. “We’re still seeing associations with premature mortality, with heart disease, with respiratory disease and with lung cancer.”
The Environmental Defense Fund, a New York-based environmental group, also supported the EPA action. The group commissioned a report last year that found that an annual standard of 8 micrograms per cubic meter prevents more than four times as many premature deaths as a standard of 10 micrograms per cubic meter.
The standard by itself doesn’t force any polluter to shut down, but the EPA and state regulators could use it as the basis for other rules that target pollution from specific sources.
The administration proposal would require states, counties and tribal governments to meet a stricter air quality standard for airborne particles that are smaller than 2.5 microns, about the size of a human hair.
The agency is proposing to lower the current annual standard of 12 micrograms of particulate matter per cubic meter of air to somewhere between 9 and 10 micrograms per cubic meter depending on the final rule, the agency said.
Particulate matter is emitted directly from power plants, smokestacks, construction sites and farmers’ fields. It also forms in the atmosphere when emissions of sulfur dioxide and nitrogen oxides from factories and vehicle tailpipes react with sunlight to form nitrate and sulfate particles. Naturally occurring sources of particulate matter include wildfires, windblown dust and salt spray from the ocean.
Under the proposal unveiled Friday, 112 counties that currently meet the National Ambient Air Quality Standards for fine particulates would be out of compliance and forced to make changes, such as reducing emissions from factories or requiring cleaner vehicles.
In December 2022, the EPA announced tougher emissions standards for heavy duty vehicles for engine manufacturers to lower nitrogen-oxide emissions from tractor-trailer-size trucks, as well as other delivery trucks, cement mixers and trash trucks.
The standards require manufacturers to create gasoline- and diesel-engine models with better exhaust systems. Industry officials said that could significantly raise the cost of new vehicles, which could lead older vehicles to stay on the roads longer, running counter to the administration’s public-health goals.
The EPA is also proposing tougher emissions standards for power plants and oil-and-gas operations. Taken together, these new measures are expected to significantly cut the amount of particulates that cause a number of health effects, according to Joseph Goffman, principal deputy assistant administrator in the EPA’s Office of Air and Radiation.
“PM is the granddaddy pollutant because, frankly, it’s so dangerous to public health and it’s so pervasive,” Mr. Goffman said. “So almost anytime you are intervening to reduce a pollutant the chances are pretty high that you will be capturing some particle pollution as well.”
After years of speculation, it seems like 2023 is finally the time for the official reveal of the first Apple AR/VR headset. But exactly when this year remains unclear.
The latest schedule according to reliable Apple analyst Ming-Chi Kuo reportedly sets the headset up for a late fall release window. Kuo says software development tools and ongoing drop testing issues mean the device is unlikely to be announced until the spring or summer (WWDC?), with a late fall release on the cards.
Previously, Kuo had predicted a January media event for the headset. But his latest tweets indicate that Apple is still working on finishing the software tooling so that developers can make apps for the new platform.
That being said, this is not necessarily a roadblock to an announcement. Apple could always unveil the headset earlier and make developer tools available at a later date. (Recall the Apple Watch was first announced at a media event in September 2014; a watchOS developer SDK was published a couple months later. The Apple Watch ultimately went on sale in April 2015.)
Perhaps more significantly is Kuo’s claim that the headset is also experiencing mechanical issues during drop testing. This is the kind of issue that Apple likely wants to resolve, or at least nail down, before announcing the product for real.
Earlier this week, The Information recapped its latest beliefs around exactly what the headset will be. This includes the news that Apple may require AirPods to be used as the audio output when conducting privacy-sensitive conversations, like during videoconferencing activities.
In general, the first Apple mixed reality headset is expected to be expensive and premium, featuring dozens of cameras and sensors, dual 4K displays, M2-based SoC, and a price tag above $2000.
WhatsApp is certainly one of the most popular messaging apps in the world, and it’s available in a lot of different countries. However, the app is blocked in some regions due to local internet censorship. But Meta now wants to challenge these restrictions, as the company announced that users will soon be able to connect to WhatsApp through a proxy server.
WhatsApp now works with proxy servers
As detailed by WhatsApp in a blog post, the messaging app will now support proxy servers. For those unfamiliar, a proxy works as a third layer between the user and the internet. It can be used to ensure better security and privacy when browsing the web.
But for WhatsApp, proxy server support will allow users to connect to the platform even in countries where WhatsApp is blocked. The company says there will be servers set up by volunteers and organizations “dedicated to helping others communicate freely.” WhatsApp also highlights that messages sent through a proxy server will remain end-to-end encrypted.
Connecting via proxy maintains the high level of privacy and security that WhatsApp provides. Your personal messages will still be protected by end-to-end encryption — ensuring they stay between you and the person you’re communicating with and are not visible to anyone in between, not the proxy servers, WhatsApp, or Meta.
The announcement comes after Iran’s local government blocked access to both WhatsApp and Instagram last year as both platforms had been used by protesters to share news about human rights violations. Unfortunately, situations like this still happen in many places around the world. According to WhatsApp, the company is working to make sure “these internet shutdowns never occur.”
WhatsApp has also made available a guide for users interested in creating their own proxy server for friends and family. Users will be able to find the new option by going into the Storage and Date settings within WhatsApp. Proxy server support is now being rolled out for iPhone and Android users, so make sure you have the latest version of WhatsApp installed.
>>> Up
* Equinor Raised to Buy at DNB Markets; PT 380 kroner
* Equinor Raised to Buy at DNB Markets; PT 380 kroner
* GB Group Raised to Buy at Investec; PT 400 pence (+)
* Haleon Raised to Overweight at Morgan Stanley; PT 370 pence (+)
* Heineken Raised to Overweight at Morgan Stanley; PT 103 euros
* Merck KGaA Raised to Overweight at Morgan Stanley; PT 230 euros
* Nestle Raised to Overweight at Morgan Stanley
* Safran Raised to Outperform at Bernstein (+)
* Senior Raised to Buy at Numis; PT 160 pence (+)
* Tesla Raised to Buy at Edward Jones
>>> Down
>>> Down
* Danone Cut to Underweight at Morgan Stanley; PT 48 euros
* Danone ADRs Cut to Underweight at Morgan Stanley; PT $10.25 (+)
* Diageo Cut to Equal-Weight at Morgan Stanley; PT 3,900 pence
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* EasyJet Cut to Neutral at Goldman; PT 450 pence
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* MorphoSys ADRs Cut to Underweight at Morgan Stanley; PT $3.20
* MorphoSys Cut to Underweight at Morgan Stanley; PT 12.50 euros
* Nestle ADRs Raised to Overweight at Morgan Stanley; PT $132 (+)
* Next Cut to Underperform at Credit Suisse; PT 6,100 pence
* Novartis Cut to Underweight at Morgan Stanley
* Scandinavian Tobacco Cut to Underweight at Barclays
* Scandinavian Tobacco Cut to Underweight at Barclays
* Standard Chartered Cut to Hold at Investec; PT 740 pence (+)
>>> Initiation
>>> Initiation
* Corre Energy Rated New Buy at Berenberg; PT 3.65 euros
* DKSH Rated New Neutral at Exane; PT 73 Swiss francs
* Essentra Re-Initiated Buy at Peel Hunt; PT 300 pence (+)
* Experian Rated New Outperform at Exane; PT 3,200 pence
* Glanbia Reinstated Equal-Weight at Morgan Stanley; PT 13 euros
* Otis Worldwide Rated New Equal-Weight at Morgan Stanley; PT $84
* Pagegroup Rated New Neutral at Exane; PT 505 pence
* Rentokil Rated New Underperform at Exane; PT 470 pence
* Robert Walters Rated New Outperform at Exane; PT 800 pence
* Robert Walters Rated New Outperform at Exane; PT 800 pence
* Robert Half Rated New Underperform at Exane; PT $70
* Royal Unibrew Rated New Underweight at Morgan Stanley
* Securitas Rated New Outperform at Exane; PT 115 kronor
* Tesla Rated New Outperform at CICC; PT $160 (+)
>>> Call
* Biogen May Rise Back Into $300s on FDA Nod Friday, RBC Says
>>> Call
* Biogen May Rise Back Into $300s on FDA Nod Friday, RBC Says
* Citi Strategists Raise European Stocks, Cut US to Underweight
* Citigroup, Goldman PTs Cut at Morgan Stanley on Rising Expenses
* EasyJet Downgraded by Goldman on Persistent Cost Pressures
* Experian, Securitas Among Exane BNP’s Business Services Picks (+)
* MS Sees Rotation From ‘Safe-Haven’ Pharma Back Into Growth
* Consumer Staples ‘a Good Place to Be’; Stock Order Changed at MS
* Next Downgraded at CS With Stock Seen Expensive, Limited Upside
* Scandinavian Tobacco Downgraded at Barclays on Weaker US Market
* SocGen Strategists Say European Stocks Expensive Against Bonds (+)
- Nel (D7G TH) +2.1%
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- Heineken (HNK1 TH) +1.2%
- Consumer Staples ‘a Good Place to Be’; Stock Order Changed at MS
- Merck KGaA (MRK TH) +1.1%
- MS Sees Rotation From ‘Safe-Haven’ Pharma Back Into Growth
- Veolia (VVD TH) +1%
- Commerzbank (CBK TH) +0.8%
- ING (INN1 TH) +0.8%
- Chinese Banks Among New Lenders Buying Orange, Masmovil Debt
- Sanofi (SNW TH) -0.4%
- MS Sees Rotation From ‘Safe-Haven’ Pharma Back Into Growth
- Telefonica Deutschland (O2D TH) -0.5%
- Bayer (BAYN TH) -0.5%
- MS Sees Rotation From ‘Safe-Haven’ Pharma Back Into Growth
- Voestalpine (VAS TH) -0.9%
- Saab (SDV TH) -1%
- Danone (BSN TH) -1.5%
- Consumer Staples ‘a Good Place to Be’; Stock Order Changed at MS
DAX:
- Siemens Energy (ENR TH) +1.1%
- RWE (RWE TH) +0.9%
- Deutsche Bank (DBK TH) +0.9%
- Fresenius Medical (FME TH) +0.8%
- E.On (EOAN TH) +0.7%
- PRICED: E.On EU1.8b Debt Offering in 2 Parts
- Bayer (BAYN TH) -0.5%
- MS Sees Rotation From ‘Safe-Haven’ Pharma Back Into Growth
MDAX:
- Rheinmetall (RHM TH) +1.9%
- Aixtron (AIXA TH) +1.1%
- Commerzbank (CBK TH) +1.1%
- TAG Immobilien (TEG TH) +1.1%
- Thyssenkrupp (TKA TH) +0.9%
SDAX:
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- MS Sees Rotation From ‘Safe-Haven’ Pharma Back Into Growth