Please read the article below and note that while Tiger has just broken through the billion dollar threshold, most workers in Nike factories around the world - the people that are generating the real wealth, the stuff that you can actually touch with your hands - are living in abject poverty.
When I saw this, I was reminded of an excerpt from the U.S. Catholic Bishop’s pastoral letter, Economic Justice for All.
“…In her Magnificat, Mary rejoices in a God who scatters the proud, brings down the mighty and raises up the poor and lowly (Lk. 1:51-53). The first public utterance of Jesus is ‘The Spirit of the Lord is upon me, because He has anointed me to preach good news to the poor’ (Lk. 4:18 cf. Is. 61:1-2). Jesus adds to the blessing on the poor a warning, ‘Woe to you who are rich, for you have received your consolation’ (Lk. 6:24). He warns his followers against greed and reliance on abundant possessions and underscores this by the parable of the man whose life is snatched away at the very moment he tries to secure his wealth (Lk. 12:13-21). In Luke alone, Jesus tells teh parable of the rich man who does not see the poor and suffering Lazarus at his gate (Lk. 16:19-31). When the rich man finally ’sees’ Lazarus, it is from the place of torment and the opportunity for conversion has passed. Pope John Paul II has often recalled this parable to warn the prosperous not to be blind to the great poverty that exists beside great wealth.” (EJFA #48)
Perhaps we can all say a prayer for Tiger today that he might come to understand that much of his material wealth is generated through the crushing poverty and exploitation of others.
Peace, Jim Keady
Sports Business
Sports’ First Billion-Dollar Man
Kurt Badenhausen, 09.29.09, 07:25 PM EDT
Forbes Magazine
www.forbes.com
Tiger Woods has been making history on and off the course since he joined the PGA Tour in 1996. First up was a record $40 million contract from Nike. The following year he won the Masters by a record 12 strokes, becoming the youngest winner ever and first black player to take the title. His career has been packed full of accomplishments, including major titles (14), annual money titles (9) and Player of the Year awards (9).
Now Woods can add one more accolade to his trophy case: the first athlete to earn $1 billion. Our calculations show that the $10 million bonus Woods earned winning this year’s FedEx Cup title nudged him over the $1 billion mark in career earnings.
Forbes has been tracking athlete earnings since before Tiger turned pro. Woods had earned a cumulative $895 million going into 2009, by our estimates, from prize money, appearance fees, endorsements, bonuses and his golf course design business. If you add his $10.5 million in 2009 prize money, the FedEx bonus and his take so far this year from his more than $100 million in annual off-the-course earnings, Woods’ career earnings are now 10 figures.
Woods has only two real competitors when it comes to career earnings among athletes: the two Michaels, Jordan and Schumacher, who dominated their respective sports for nearly 15 years. Jordan’s earning peaked during his last season with the Chicago Bulls (1998-’99), when he earned $69 million in salary and endorsement income.
Jordan continues to earn $45 million annually, almost entirely from Nike ( NKE - news - people ). We estimate that Jordan has earned $800 million since he entered the NBA in 1984. Annual sales of the Jordan brand are now $1 billion for Nike, so MJ should hit the $1 billion mark in career earnings in the next four to five years.
Schumacher’s earnings peaked at $80 million in 2003, when he won his record sixth World Drivers’ Championship (he won a seventh title the following year). His $40 million salary was the highest in sports at the time and his income doubled when you factored in endorsements, licensing deals and championship bonuses. Schumacher has earned $700 million, by our count, since his Formula One debut in 1991.
As for Woods, only his accountant knows if Tiger is a billionaire athlete yet, but if it did not happen on Sunday it is likely only a matter of months or his next check from Nike. Woods has been the world’s highest-paid athlete since 2002, when he surpassed Schumacher. His earnings have surged in recent years as he launched a golf course design business. He currently has three courses underway that pay him more than $10 million per project. The launch of the FedEx Cup has been a bonus for Woods, who has taken the $10 million top prize in two of its three years (a knee injury prevented his participation last year). Woods also commands $3 million appearances fees when he plays outside the United States.
Woods lost General Motors’ Buick division as a sponsor at the end of last year, but he quickly added AT&T ( T - news - people ) as the brand on his golf bag. PepsiCo ( PEP - news - people ) launched Gatorade Tiger last year in a revenue-sharing deal that potentially could be very lucrative for Woods. His other biggest endorsement deals include Accenture ( ACN - news - people ), Electronic Arts ( ERTS - news - people ), Gillette and Upper Deck.
It is Nike, though, that has been Woods’ most lucrative partner. The relationship has been hugely beneficial for both parties, as Nike launched a golf division from scratch, with Woods carrying the brand, and sales are now $800 million annually. Nike pays Woods upward of $30 million annually for his ringing endorsement.
The most stunning part is that Woods is only 33 years old–he might have 15 years of competitive golf left in him, and 30-plus years of designing courses. This is only the first billion for Woods.
by Hugh Wheelan
Responsible Investor
www.responsible-investor.com
US SRI and environmental fund managers, have written to Nike, the sportswear company, urging it to quit the US Chamber of Commerce, the country’s largest business federation, after Nike joined other companies in criticising the Chamber’s opposition to measures tackling climate change. In a letter to Mark Parker, president and chief executive officer of Nike, fund managers Green Century Equity Fund and Newground Social Investment, alongside the Basilian Fathers of Toronto, a catholic religious order, turned Nike’s own slogan “Just do it” on the company, to urge it to quit. It follows a similar resignation this week by Exelon, the largest US nuclear power generator, and two previous resignations by utilities companies, Pacific Gas & Electric and PNM Resources. This week, Nike and Johnson & Johnson, the household products group, both criticised the chamber for its refusal to back cap-and-trade legislation proposed by the Obama administration. The US Chamber of Commerce has three million members and describes itself as the world’s largest business organisation. It has been increasingly vocal in recent months on climate change and corporate governance issues, pitting it notably against SRI investors. Last month, a senior chamber official proposed a “Scopes monkey trial of the 21st century” to evaluate global warming, referring to the 1925 trial conviction of John Scopes, a Tennessee teacher, for teaching evolution rather than the Bible’s version of creation. In July, US SRI firms and advisors attacked as “fatally flawed” a report published by the Chamber that claimed that shareholder proposals at corporate AGMs showed no clear evidence of short- or long-term improvements in operating or stock market performance of target firms and could be placing trustees in breach of their fiduciary duty under ERISA guidelines. One SRI advisor, Creative Investment Research, invited signatories to the $18 trillion United Nations Principles for Responsible Investment to write to the Securities & Exchange Commission (SEC) to point out what it said were problems of bias with the research and to lobby against its influence on future SEC policy on shareholder voting.
Here are comments from some of Team Sweat’s newest members.
Enjoy!
Peace, Jim Keady
I want to help end exploitation NOW!
- Elizabeth Ortlieb
(I’m) against Nike’s sweatshops!!!!
- Fajar Botex
I want to make trade fair and stop the worker abuse.
- Oi
Ever since my freshmen year of high school, I have been heavily involved in social justice. I have worked with United Students Against Sweatshops (USAS) and have also founded our school’s first social justice group. Not only have we informed students about the many injustices which is occurring throughout the world, we have joined in on actions against Chipotle’s “Food with dignity” slogan (hypocrisy). “Behind The Swoosh” has just made me even more motivated to fight against greedy companies like Nike.
-Jeffery Tso
I hate to see injustice like this. I want to buy Nike running shoes as they’re a good product, but I won’t on principle due to the worker’s conditions.
- William R Aldridge
(I joined Team Sweat) because I want to help make a difference.
- Tara Johnson
As a fellow human it is disturbing to me to see the attitude of a corporate giant towards another human being. To whom much is given much is required. Those in a place of leadership and power should be the example of what to do and how to treat your fellow human. They should be living with a higher standard. It is disgraceful and saddens me to see this.
- Trey Brush
I don’t often use Nike equipment but I’m shocked by the treatment reported in the Phedipidations interview. I’m sending my email to (Nike CEO) Mark Parker now!
- David Yelland
I heard you guys on Phedippidations and I want to add my name to (the campaign). I can’t do much but I am sure I can drum up interest amongst my friends and community and we could send postcards as you suggest. Also if purchasing a t-shirt can help I can do that and show others. I can generally make your cause known with whomever I meet especially in some of the independent running stores I visit and direct them to the website. I hope that maybe of some use to you.
Cheers, Matt
I have long avoided purchases of NIKE products because of their unfair labor practices. I am happy to hear of your organization through Steve Runner and am glad to join the fight!
- Susanna McDonald
I heard about you on Phedipidations. I like your style and agree with your message. I am a Buddhist who respects people of true continence and conviction when it comes to making this world a better place for all to live in. You are doing this and I would like to support you in whatever small way i can. Thank you for your efforts.
- Dan Harrell
(I joined Team Sweat) because I’m disappointed in the way Nike treats their workers in the third world.
- Kevin Hicks
(I joined Team Sweat because I) listened to the Phidipidations podcast. Good luck.
- Robert Harris
I just listened to Steve Runners podcast. Very enlightening. I’m posting TeamSweat.org on my website.
- Connie Roush
I wanted to pass on to you a promo that I produced. It is made of audio clips of college students and one worker from videos on your site, as well as portions of the interview with Steve Runner last week.
Please feel free to use it in any way that you wish. This is MY way of gettin my voice out ther.
You can find the audio at http://runningthestraightandnarrow.podbean.com .
Running the Straight and Narrow,
Steven Platt
I was moved by Jim’s presentation in my class at Temple University today 9-14-09. Every human being deserves to earn a living wage. Lets end this slavery!!
- Alexis Burgner
Have been listening to Steve Runner discuss this the past few weeks. Disturbing stuff. So, I want to be educated first. Then i can make informed decision as to what level I support Team Sweat and/or Nike. I don’t think someone should blindly become active without knowing what they are supporting.
- Rich Davey
I joined Team Sweat because just after I bought myself a nice Nike jacket I found out about the terrible things they are doing by taking advantage of their workers. It makes me sad that I had unknowingly contributed to a terrible company waging terrible crimes upon humanity. I will not buy another Nike product until I can do so without aiding them in these crimes.
- Nathan Bunting
I just heard about it on episode of Phidipations by Steve Runner on my run today and decided to check it out on my own. While I havent been a big consumer of Nike products, I do have some. I totally agree any corporation making millions in profits, paying spokespeople billions, (spending) billions in advertising can be responsible and pay all their workers a livable wage and make sure anyone making their products is treated fairly. Too much corporate greed is ruining this country.
- Bruce McIntosh
Here’s another marathon runner telling Nike CEO, Mark Parker to “Just Do It” with regard to workers’ rights. Check out his photo and how he has covered up the Nike “swooshes” with tape.
Peace, Jim Keady
Mr Parker,
I am writing this e-mail to inform you that I will not buy any more Nike products until an independent organization like TeamSweat acknowledges a significant improvement of working conditions in Nike’s factories in Southeast Asia.
I live in Germany and have been a serious runner since 12 years. I have always worn your shoes and apparel. In fact, my first serious running shoes were a pair of Nike Air Edge Max, and I loved them. Currently my favorite shoes are my Nike Air Zoom Elite, which I wore during three Marathon races. I also like my pair of Nike Free because of the barefoot feeling.
I would love to buy their respective successors when my old ones will be worn off, but I can’t.
Research by the people of TeamSweat, an organization founded by Jim Keady, showed the miserable living conditions of the people who make the Nike products in your factories in Indonesia. When I saw the video “Behind The Swoosh” and read about Jim’s work I asked myself two questions:
1. Wouldn’t the people be worse off if they hadn’t these underpaid jobs at Nike? Obviously there are no better jobs there. My answer: Yes, they would be worse off. But not much worse. And Nike as the market leader would have the opportunity to make their lives better. Just use some of the money you would otherwise pay to celebrities like Jordan or Woods to increase the wages of the factory workers. So, in my eyes, Nike is not responsible for the poor living conditions in Indonesia, but you are responsible for not improving those conditions.
2. Why accuse Nike and not all the other companies that do the same? The answer: I know that other companies also pay very low wages and have their workers spend long hours in the factories. But you have to start somewhere. Nike is the market leader, so TeamSweat focuses on Nike. Bad luck for you! But you have the choice: pay your workers decently, and you will improve both their lives and your company image considerably.
The awareness of poor working conditions in developing countries is growing in Germany. Small companies like the Hamburg-based running store company Lunge (www.lunge.com , www.lunge.de ) build own factories in Germany because they recognized the poor quality of shoes made in the sweat shops. They are very successful with their high-quality clear-conscience not-at-all-fancy shoes. The running community is big and well connected. News about the behavior of companies like Nike, whether bad (today) or good (tomorrow?) will spread like wildfire.
Use your power to make the world better! I want to buy a brand new pair or Nike Free as soon as possible. Today this is impossible for me.
The following letter was sent this week to Nike CEO, Mark Parker. Check out the photo of the author with tape over his Nike swooshes.
Peace, Jim Keady
Mr. Parker,
I am contacting you as a long time fan of Nike products that has recently been enlightened to some aspects of the Nike Corp. that do not make me feel comfortable wearing and supporting the brand.
As a long distance runner, I have always turned to Nike for the latest in shoe technology. As I use three pairs of running shoes a year, I can always count on Nike to provide the most advanced, and comfortable shoe. I have grown up on the Nike brand and believed I shared the same values of my hero Steve Prefontaine and the corporation; strive to be the best and never give up.
I recently watched a short film at Teamsweat.org; I believe you are familiar with this group, which had some very enlightening details regarding Nike working conditions outside of the U.S. The movie was disturbing to say the least, and I would think that a powerhouse company like Nike would have the power, financial backing and SOCIAL RESPONSIBILITY to change the culture of these business practices. If not Nike, then who? I understand this is outsourced work, but I would think that Nike would align itself with companies that share like-minded standards.
I find it extremely awkward and alarming that Nike would pay millions of dollars to professional athletes to sponsor Nike in the US, who do not need the money, and not pay the workers manufacturing the products across seas enough to afford a decent meal.
I have heard the argument that Nike has made improvements to these conditions, but I am having trouble locating information regarding the improvements. I believe that this information should be available to the public. Is there documentation that will dispute Teamsweat.org point on Nike’s unfair labor practices? I would like to be open-minded about this, but the evidence thus far is overwhelming against Nike.
I hope to hear back from you soon. I am running the Chicago Marathon on October 11, 2009, an event that has Nike as a sponsor. It will be the last event that I volunteer for that is sponsored by Nike if I do not see that improvements have been made. I also plan on wearing a well broken in pair of Nike shoes for that marathon. Unfortunately; I will be placing a piece of duct tape over the swoosh on my Air Zooms and all other visible swooshes on my apparel. If questioned, I will spread the word about the video I saw and how Nike treats the people making their product. I know that this campaign will pale in comparison to your high priced golf pros and other athletes that peddle your product, but if I can raise awareness to just one of my 40,000 fellow runners on the racecourse, I will be at peace with myself. As someone who ran 6 marathons last year, and 9 in the last three years, and many, many other races, I will be covering a lot of mileage with my message.
Here is a letter that a marathon runner sent to Nike CEO, Mark Parker this week. I thought it might inspire you to take the time to write to Mr. Parker about Nike’s sweatshop abuses. His email address is mark.parker@nike.com.
Peace, Jim Keady
Mr. Parker,
I listened to the most recent episode of the popular running podcast
“Phedippidations “today. It featured an hour long interview with a man I think you know - Jim Keady of Team Sweat. I was already aware of reports about the working conditions of people in Nike factories around the world, and it already bothered me. This podcast made me really think about the issue.
I have worn Nike shoes and exercise apparel for more than three
decades. My closet is full of Nike gear.
Jim Keady’s interview was compelling and I have to say that I will not
buy any additional Nike products until I have heard from your company
that Nike is changing their labor practices. I recognize that Nike is
not the only corporation involved with poor working conditions, but you
are certainly one of the most visible for people like me who spend much
of their life engaged in sports.
I first learned about Nike as kid running high school track in Texas in
the mid 70’s. A new kid who was the current junior national champion in
the mile moved to our town from Oregon. He showed up the first day of
track practice wearing a goofy looking pair of shoes with a waffle
bottom. The shoes weren’t available in our town and without the
internet it took a considerable effort for any of us to get a pair - but
we did, and we loved them. Since that time I have always viewed Nike as
a company with whom I shared a common vision, which I realize is naive.
But, I really believed you were all about running and sports and the
people who used your products. I believed, for no obvious reason, that
you were a good corporate citizen because you shared a bond with me as a
runner. That’s nonsensical, I know, but it isn’t a bad image for you to
have - is it?
I also have a podcast - Fitness Rocks (www.fitnessrocks.org) and I may
follow Steve Runner’s lead in producing a show about Team Sweat. I
would be very happy to offer the Nike side of the story if you, or
someone at Nike, would talk to me in a telephone interview. I would
sincerely like you to convince me, and my listeners, that it is OK to
buy your shoes, because I like them, and I don’t want to give them up.
The match made in sports marketing heaven has been a marriage like any other, for better or for worse.
Most prominent among the rough spots were the reports that Nike used sweatshops in Indonesia. In 1996, human-rights and labor advocates demanded that Nike improve pay and conditions for its workers.
Nike said it subcontracted its work and had no control over how the workers were treated, although it said it had tried to improve conditions.
But Michael Jordan only fueled the fire with a response that infuriated his critics.
During the 1996 NBA Finals, when asked about the alleged abuse of child workers, Jordan said: “I think that’s Nike’s decision to do what they can to make sure everything is correctly done. I don’t know the complete situation. Why should I? I’m trying to do my job.”
No matter how many press releases Nike churned out to document the millions invested in continuing education and low-interest loans in those underprivileged countries, Jordan, as Nike’s biggest attraction, remained the focal point of criticism.
Likewise, many consider Jordan’s iconic Jumpman as a symbol for greed in sports. Jordan’s Hall of Fame exhibit already has been panned for having too much Nike, not enough Mike.
To those most critical of Jordan, every shoe sold under his name takes him one step further from his social responsibility.
Howard White, vice president of marketing for Jordan Brand, and those close to Jordan have heard the charge often — and scoff every time.
“You always hear Michael doesn’t give back to the community,” White said with a sigh. “But to me he makes some of the boldest social statements in the world: show up for work, be on time and be accountable for your job.”
Jordan’s success also created unexpected consequences.
The unprecedented annual demand for each new design of the Air Jordan sneakers elevated the shoes to such status symbols in many American cities that youths were using any means to get a pair, including violence. Fame had never felt so conflicting to Jordan than when he considered kids were literally dying to wear his shoes.
“People started robbing each other for the shoes, and it bothered him,” said Tinker Hatfield, Nike’s vice president of innovation and the primary designer for the Air Jordan line. “We were all sad, but it was much more a comment on materialism and people not respecting life. There was something else in our society driving that behavior so we never felt guilty or responsible or thought we would dial back and do less cool stuff, and Michael was adamant about that.”
WASHINGTON – Nike Inc. spent $120,000 in the second quarter to lobby on physical education, trade, patent reform and other matters, according to a recent disclosure report.
Besides Congress, the Beaverton, Ore.-based athletic shoe and apparel company lobbied the U.S. Trade Representative and the departments of Health and Human Services, State and Treasury during the April-June period, according to the report filed July 20 with the House clerk’s office.
Check out “Steve Runner’s” Phedippidations PodCast . This week TEAM SWEAT is the feature story. Steve’s show goes out to 10,000 runners around the world. The show just went up this morning and already we have been flooded with runners interested in joining the fight to end Nike’s sweatshop abuses.
Surfersvillage Global Surf News: Converse widened its gap over the other brands in the Nike, Inc. subsidiary portfolio for the fiscal year ended May 31 and looks to be poised to reach the billion dollar mark in the current year. Converse posted a 12.6% increase in revenues for the fiscal 2009 year, reaching $915.3 million for the year. The details were outlined in the Nike, Inc. form 10-K filed with the SEC. Converse fiscal 2008 revenues amounted to $729.0 million.
Nike, Inc. acquired Converse in 2003 in a deal worth $305 million. Converse reported full year revenues of $205 million in the year ended December 31, 2002. Nike Golf lost ground in the market in the last fiscal year, posting a 10.6% decrease in revenues for the year to $648.3 million from $725.2 million in the prior-year period. Cole Haan also posted a decline for the year, with revenues dipping 5.0% to $471.6 million from $496.2 million in fiscal 2008.
Hurley revenues jumped 18.6% to $202.9 million for the year from $171.1 million in the prior year and Umbro posted $174.0 million in revenues under the NKE umbrella for the year versus just $53.9 million for the brand for the three months ended May 31, 2008. Nike, Inc. acquired Umbro in March 2008 for approximately $576.4 million.
The overall NKE subsidiary business dipped under one percent for the year, due primarily to the divestiture of Nike Bauer Hockey and Starter.
Portland Business Journal - by Andy Giegerich Business Journal staff writer
Oregon’s best-known company also has the worst track record for corporate governance.
Washington County’s Nike Inc. scores 5.1 on a scale of one to 100 for its governance practices, according to RiskMetrics Group, meaning it ranks below nearly 95 percent of its peers.
While Nike scores near the bottom of the list, however, some local companies, including Umpqua Bank, have established themselves as national leaders for corporate governance.
Rockville, Md.-based RiskMetrics annually ranks the corporate governance practices of the nation’s biggest companies. The rankings measure the independence and strength of each company’s board, the effectiveness of the company’s auditors and the reasonableness of executive and director compensation policies.
Institutional investors — the bulk of the nation’s stock pickers — rely on such studies to make informed investment decisions.
“Sometimes, corporate governance is the main driving factor in … investing decisions,” said Monica Poveda, a portfolio manager with Portland-based Allen Trust Co. “It’s the same thing as clients who want to make socially responsible investments.”
Nike scores near the bottom of the list largely because of the structure of its stock.
The company operates under a dual-class stock structure, with too many “supervoting” shares held closely by insiders, said Paul Wanner, RiskMetrics’ director of governance rankings.
Phil Knight, Nike’s chairman, owns 96.4 percent of Nike’s Class A stock, and Class A shareholders get to choose nine of Nike’s 12 board directors.
Wanner said the system, at least in Nike’s case, is used as an “entrenchment device” to maintain control of the company. The dual-class capital structure is Nike’s biggest negative.
Nike also fails to disclose, at least transparently, stock ownership for executives and directors. Knight, the company’s former chairman and CEO, also continues serving as a director, another negative.
“We feel that directors appointed under the previous regime might have a loyalty to that CEO, so we’d prefer the previous CEO be gone completely,” Wanner said. “That way, the focus is on holding the new executives at the company accountable, not serving the interests of the CEO who may have appointed them.”
Wanner’s also concerned that Nike doesn’t have a policy on “overboarding,” or preventing directors from serving on too many boards.
The company’s dismal ranking could also result from its peers performing so well. Companies are ranked relative to peers, meaning Nike is ranked alongside the nation’s biggest companies.
“The Standard & Poor’s 500 index has the higher market-cap companies, which are always going to have better governance practices than smaller or micro-cap companies,” Wanner said. “That’s why even though their level is only around 5 when compared against their peers, they’re in the middle when compared against their sector.”
Despite the company’s dismal ranking, it continues to outperform the market and is historically one of the state’s strongest stocks. Since Jan. 1 of last year, it’s down 11.6, compared to a 29.7 percent drop in the Dow Jones Industrial Average.
Nike didn’t return a call for comment.
By and large, Oregon companies performed quite well in the corporate governance rankings. Twenty-one of the largest 25 Oregon public companies performed better than others within their industry peer groups.
Oregon’s two largest banks — Umpqua Bank and West Coast Bank — fared best.
Portland-based Umpqua performs better than 99.8 percent of its peers, while Lake Oswego-based West Coast Bank performs better than 99.1 percent of its peers.
Visit Team Sweat on Facebook!
Visit Team Sweat on MySpace!
Visit Team Sweat on Twitter!