Zinger Key Points
- Budget blues at Reebok steer Shaquille O'Neal towards a strategic pivot in athlete endorsements.
- Reebok's market resurgence put to the test with a focus on rising stars over established athletes.
- Get access to the leaderboards pointing to tomorrow’s biggest stock movers.
Shaquille O’Neal, president of Reebok Basketball, was forced to change his initial plans of signing big names due to budget constraints.
What Happened: Shaq, who assumed the role of Reebok’s president in 2023, had a vision to restore the brand’s former glory through strategic partnerships with athletes and teams.
However, he encountered unexpected budgetary limitations. “I had to deal with something I never had to deal with: budgets. Cuz I’m like, ‘Imma sign Shai, I’ma sign all these players.’ But hollering at their agents, they want $60 million. And now I gotta go back to the Board and they said, ‘Man, you ain’t got $60 million,'” O’Neal revealed during an interview.
Reebok, which was once a major rival to Nike, has witnessed a significant decline in its status since being acquired by Adidas in 2006.
By the time O’Neal took the reins, the brand wasn’t even among the top 7 in market share, essentially starting from scratch.
O’Neal’s initial strategy to sign Shai Gilgeous-Alexander was thwarted due to financial constraints. Instead, he signed Angel Reese, a star of women’s college basketball, who had a personal connection with O’Neal through LSU.
Reese, the 7th overall pick in the 2024 WNBA Draft, was signed to a multi-year extension by Reebok in October 2024, making her the sixth current WNBA player to have a signature shoe. Her signature shoe is expected to be released next year.
Why It Matters: This unexpected partnership is a testament to the financial challenges Reebok is currently facing. The inability to sign big names could potentially impact the brand’s resurgence strategy.
However, signing Reese, a rising star in women’s basketball, could open new avenues for the brand in the women’s sports market.
The success of Reese’s signature shoe could be a crucial factor in determining the future trajectory of Reebok under O’Neal’s leadership.
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