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Old 07-23-2012, 12:48 PM   #49
Join Date: Feb 2012
Location: The Grindhouse
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Originally Posted by BreakPoint View Post
I doubt Nike made very much profit, if anything at all, off of Agassi over the years. They paid him like over $100 million over the years. I highly doubt Nike made over an additional $100 million in profit just because of Agassi. In fact, the tennis market has never been a big profit maker for Nike, hence the never ending rumors that they may shut down their tennis business. I think the only thing that has kept it alive all of these years is that the CEO Phil Knight personally like tennis, because it certainly hasn't been because of the incredible profits.
according to a relative of mine who works in the athletic shoe field it costs most large shoemakers (nike included) somewhere between $5-7 USD to make a pair of sneakers (ie. Vapors). Without getting into the details of what nike charges retailers for the shoes, varying prices, marketing amortizations etc.... if nike clears a profit of $50 per shoe Nike needs to sell 200,000 shoes per year to break even. I'm willing to bet Nike clears that in the US market alone. Count the rest of the world and they double their money on their 100 mil investment in Aggassi
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