Sports Stories: A Look at How Shoes and Rules Change the Competition of Sports

This week’s post connects to two other blogs on Sports and Business. Both posts provide pros and cons on the other author’s viewpoint. My first set of comments are linked to the Sports Business News blog regarding the release of the Marbury One shoe line. I chose this blog because of my personal interest in athletic shoes and Marbury’s attempt to make his shoes affordable for the ordinary guy. My second set of comments are posted on the BBT: The Magazine blog and focus on changing the way sports are played in order to maintain fan interest and team revenues. As a business student, I am always amazed how sports are becoming more exciting to make the fans convinced they are getting their money’s worth. You can either read my comments posted at the other two blogs or just continue reading below.

As an athletic shoe collector I find this article fascinating if not unbelievable. While many high profile athletes make fortunes selling $150+ basketball shoes, Stephon Marbury has discovered a way to sell his own brand of shoes for a ridiculously low price of $15 a pair. I salute him for reaching out and making sure that all kids have the opportunity to achieve greatness regardless of their own economic barriers. In addition to giving back to his community, I feel that the launch of Marbury’s shoe campaign will help get more kids off the streets and onto the basketball courts. Similar to after school programs which help kids stay in school and go to college, Marbury’s shoe program will encourage kids to stay physically fit, avoid drugs, and join athletic teams. All of these actions will help promote health awareness among our youth. To satisfy my curiosity, I checked out the nearest Steve & Barry’s Athletic Store in Culver City last Saturday at 10 AM. It is located next to Macy’s department store in the Fox Hills Mall and the insides resemble a K-Mart or Target environment. I found a huge inventory of Marbury’s shoes available and not that many customers. According to Andy Todd, president of Steve & Barry’s, the shoes were sold out throughout the United States. Instead, I would tend to agree with Bob Basche that “Marbury didn’t have the cache to sell shoes nationally like LeBron James, Michael Jordan, or Dwayne Wade.” As a lifelong Laker fan, I have seen plenty of people wearing Kobe and Jordan jerseys but no one in LA wearing Marbury clothing. If Steve & Barry can make sports shoes affordable to everyone, they will clearly have revolutionized the sports apparel industry.

When I first read your article I couldn’t stop laughing. The suggested new playing rules seem absurd and could never be accepted in our traditional sport’s society. But reflecting on the changes in sports over the last couple of decades, one thing remains constant: the rules will change in order to hold the interests of the fans and make a profit for the owners. The following changes come to mind: (1) adding the designated hitter rule in baseball to eliminate a weak hitting pitcher; (2) decreasing the shot clock interval in basketball to force teams to take more shots; and (3) adding the shootout rule in hockey to eliminate tie games. In each case, the rules were changed to make the sport more entertaining and draw bigger crowds. Let’s take a look at two of your suggestions. If we eliminate football salaries and make players solely dependent on endorsements and fan donations, no one can accuse them of inflated paychecks. On the other hand, only the high profile superstars will command mega level endorsements and force the other players to create their own businesses to generate revenue. Even worse, many of the top players will flock to the giant media centers, such as Los Angeles and New York, to solicit major endorsement contracts. Your other suggestion to add a “Zero G” environment to basketball could add a whole new dimension to how the games are played. Just imagine the score for dunking the ball could be based on the difficulty of the acrobatic maneuver, just like gymnastics. And with today’s technology, creating a Zero G environment is feasible although costly. Who really can predict what the game will look like 10 years from now?

The Inflation of Sport Shoe Prices: How Business Uses Sport Stars to Drive Up the Demand for Customized Shoes

The world of sports and business has many avenues to explore but one that has intrigued me lately is the sale of high end priced athletic shoes. I had always wondered why anybody would want to pay $200 for a pair of tennis shoes that would probably wear out within a year. I thought the answers were one of the following: (1) emulate their favorite sports stars who wear or promote these shoes; (2) treat themselves to the finest shoes available; or (3) keep pace with their friends and athletic partners. But according to Stefani Greenfield, co-owner of Scoop, a chain of trendy boutiques based in New York City, “People are buying expensive sneakers to achieve that stylish-without-trying effect." The need to look good from head to toe is overwhelming America and NDP, a consumer information company, substantiates that claim by noting, “Spending on athletic shoes that cost $100 or more shot up to $674.5 million in 2005--a 37% increase over last year's top-tier sneaker spending.” Just like designer jeans, expensive shoes make a fashion statement about the wearer.

An exciting combination of unusual shoe designs fused into one model was released by Nike on October 21, 2006. “In celebration of their historic relationship, Jordan Brand and Spike Lee have come together to design the Jordan Brand Spiz’ike.” Shown to the right, it integrates into one shoe the popular features from the Air Jordan III, IV, V, VI, and XX series. “In addition to the obvious Jordan design characteristics, Spike Lee’s Mars Blackmon character and his ‘40 Acres and a Mule’ logo are placed on the back of the kix.” Basketball viewers should be very familiar with Mars as the primary pitch man for Nike shoes during the 1990’s with his classic phrase, "Is it the Shoes? Is it the Shoes? Is it the Shoes? … it's gotta be the shoes.” The customer message is clear and simple, much like the famous “Just Do It." When I first saw the shoe advertised over the Internet, the elaborate style and color combinations immediately stood out. The marketing idea of combining Jordan and Lee trademarks into a single shoe package is pure genius. The design incorporates subtle references to the two media superstars by numbers and patterns etched onto the sides. For example, the “40/a” on the heel represents Spike’s film company, 40 Acres and a Mule. In addition, Nike will produce only 4023 pairs – and as any NBA fan knows, the number “23” is Jordan’s Chicago Bulls retired jersey number. Both superstars have large and dedicated fan clubs that collect almost anything that is associated with their names. Like many rare sneakers, this model transcends the normal use of a basketball shoe and will most likely never be used in a gymnasium or ball court. As a tribute to Spike Lee, the shoes first went on sale at Premium Goods, “Brooklyn’s first and most premier sneaker boutique." Early bird shoppers were ecstatic to purchase them for $175 a pair. Today, this limited edition model can only be purchased through online resellers with starting bids at $300 each.

Nike’s most famous sneaker, the Air Force One, was first released in 1982 as the first basketball shoe to incorporate Nike Air technology. It has remained one of the company’s most popular styles selling for about $65. As stated on many Nike retail websites, “The Nike Air Force One shoes have been a major hit in the hip-hop community whose culture was so closely connected to the streets of New York and the basketball scene there. Many of the up and coming artists from the streets of Brooklyn rose to the top while wearing the Nike Air Force Ones.” The mixture of bold music sounds, classic New York roots, and the new shoe designs immediately grabbed the public’s attention. In celebration of the 25th year anniversary of Air Force One, Nike has decided to produce the Nike Air Force One Supreme ’07 with a price tag of $200. Although the two shoes appear identical, the company is promoting the latest version shown to the left as superior in comfort with a brilliant white exterior. As part of the Nike’s advertising campaign to soften the price increase, they are featuring a television piece on famous NBA stars wearing the shoes as they battle each other in one-on-one games inside a darkened aircraft hanger. Titled "The Second Coming", it features such NBA stars as “Kobe Bryant, LeBron James and Rasheed Wallace in front of the camera and Rakim, KRS-One, NAS and Kanye West providing the soundtrack." The surreal black and white setting helps to accentuate the sneakers in dynamic images with the clear association of the Nike logo and basketball’s elite players. The company is betting that customer loyalty and the endorsement of the NBA stars will override any initial hesitations to purchase the latest model. Loyal Nike fans will have to think carefully about losing their cherished “Swoosh” quality if they switch to another brand. This year Nike “profits rose to $325.6 million, or $1.28 per share, from $301.1 million, or $1.14 per share, a year ago.” With these financial records they can afford to gamble on an aggressive marketing strategy. The company is banking on a reputation for unmatched quality control and customer satisfaction as constant differentiators with their nearest competitors. In the past they has successfully made the customer believe that extra cost always provides a superior product. With this business philosophy, Nike believes there will always be profitability in creating new designs and enhancing long time favorites.