Saudi Press

Saudi Arabia and the world
Thursday, Oct 02, 2025

Nike and other sneaker companies may feel the sting of the NBA's controversy in China

Nike and other sneaker companies may feel the sting of the NBA's controversy in China

The NBA's recent controversy in China could have ripple effects for American footwear and apparel companies. Those companies, especially Nike, have close ties to the league and its athletes but rely heavily on China for growth.

Houston Rockets General Manager Daryl Morey set off a firestorm last Friday when he tweeted support for pro-democracy protesters in Hong Kong. After backlash from the NBA's Chinese partners, the NBA apologized to China and distanced itself from Morey's Tweet.

But later, many fans and US politicians from both sides of the aisle criticized the NBA for prioritizing profits over free speech and human rights, prompting NBA Commissioner Adam Silver to issue another statement saying he won't censor players or team owners on China.

The NBA has a lot to lose if it were to be shut out of China — one analyst estimates the country contributes 10% of the league's revenue. But its corporate partners, including Nike, are also counting on China to lift their bottom lines.

Nike brought in $6.2 billion in revenue from the Greater China region last year, up 21% from the prior year compared to just 7% growth in North America. China has been Nike's fastest growing market for the past two years. Rival footwear companies Adidas (ADDYY) and Under Armour (UAA) do not break out revenue from China, but sales in Asia Pacific have grown faster than in other areas for both of those companies.


For footwear companies, China boasts a growing middle class that is increasingly interested in their products. The country also offers close proximity to manufacturing facilities and a large and enthusiastic NBA fanbase. While the brands don't appear to be hurting from Morey's tweet, sales could take a hit if the controversy worsens. Footwear companies have already expressed concern about the ongoing US-China trade war eating away at their profits.


"Should this situation escalate, should the government suggest that consumers no longer buy Western brands or brands that are associated with the NBA, that would be very bad," said Matt Powell, a retail analyst with the NPD Group. "They are all getting a significant portion of their growth from China."


Involvement in an such an ideological clash is especially tricky for sports brands like the NBA and US footwear companies, which have taken progressive stands on many social issues — diversity, LGBTQ+ rights, women's equality.

Nike in particular could face challenges because of its role as the NBA's exclusive apparel provider. Already, the NBA's broadcast and streaming partners in China, CCTV 5 and Tencent Sports, said they will not air Houston Rockets games and may decline to show other preseason games, depriving the Swoosh of valuable exposure. The spat also caused the last-minute cancellation Wednesdsay of an NBA press event in China that was set to include several top NBA athletes, including Nike endorser LeBron James.


Its role as an apparel partner means Nike also could take a hit from a drop in official NBA apparel. As of Thursday, some Nike stores in China had pulled Houston Rockets sneakers and other merchandise from their shelves, according to a report from Reuters. Neither Nike nor the NBA immediately responded to requests for comment.


Nike has in recent years leaned on the NBA's popularity to help drive further growth in China. In 2017, to much fanfare, Nike opened the 6,550-square-foot "Nike and Jordan Basketball Experience Store" in Beijing, where consumers can test out basketball shoes on an in-store half court.


At the same time, the company also has established deep roots in China, which could help shield it from any serious NBA-related backlash, according to Susquehanna International Group analyst Sam Poser.


In addition to outfitting the NBA, Nike is the official apparel provider for the Chinese men's national basketball team. It also does much of its manufacturing in China, meaning if the Chinese government were to turn on the company, it could be undermining jobs for its own citizens.


Poser pointed out in a note to investors Thursday that Nike's philosophy in China has been to create products "of China, for China" rather than "strictly being a US brand looking to capitalize on the growth of the Chinese consumer. The philosophy has worked, as [Nike] has continued to thrive in China."


Adidas could also be hurt by the turmoil because Houston Rockets star James Harden is one of its top NBA endorsers. After Morey's tweet, Harden appeared keen to appease the team's Chinese fans, telling reporters, "we apologize, we love China."
Just last month, Adidas announced a new line of Harden basketball sneakers that are set to be available for purchase later this month. Adidas declined to comment for this story.


"Nike has a broader exposure here because of the uniform rights, but everybody has the potential to be affected by this," Powell said.

Newsletter

Related Articles

Saudi Press
0:00
0:00
Close
Altman Says GPT-5 Already Outpaces Him, Warns AI Could Automate 40% of Work
Trump Organization Teams with Saudi Developer on $1 Billion Trump Plaza in Jeddah
Electronic Arts to Be Taken Private in Historic $55 Billion Buyout
Colombian President Petro Vows to Mobilize Volunteers for Gaza and Joins List of Fighters
Nvidia and Abu Dhabi’s TII Launch First AI-&-Robotics Lab in the Middle East
UK, Canada, and Australia Officially Recognise Palestine in Historic Shift
New Eye Drops Show Promise in Replacing Reading Glasses for Presbyopia
Dubai Property Boom Shows Strain as Flippers Get Buyer’s Remorse
Top AI Researchers Are Heading Back to China as U.S. Struggles to Keep Pace
JWST Data Brings TRAPPIST-1e Closer to Earth-Like Habitability
UAE-US Stargate Project Poised to Make Abu Dhabi a Global AI Powerhouse
Trump and Starmer Clash Over UK Recognition of Palestinian State Amid State Visit
Saudi Arabia cracks down on music ‘lounges’ after conservative backlash
Saudi Arabia Signs ‘Strategic Mutual Defence’ Pact with Pakistan, Marking First Arab State to Gain Indirect Access to Nuclear Strike Capabilities in the Region
Sam Altman sells the 'Wedding Estate' in Hawaii for 49 million dollars
Turkish car manufacturer Togg Enters German Market with 5-Star Electric Sedan and SUV to Challenge European EV Brands
World’s Longest Direct Flight China Eastern to Launch 29-Hour Shanghai–Buenos Aires Direct Flight via Auckland in December
New OpenAI Study Finds Majority of ChatGPT Use Is Personal, Not Professional
Kuwait opens bidding for construction of three cities to ease housing crunch.
This Week in AI: Meta’s Superintelligence Push, xAI’s Ten Billion-Dollar Raise, Genesis AI’s Robotics Ambitions, Microsoft Restructuring, Amazon’s Million-Robot Milestone, and Google’s AlphaGenome Update
Indian Student Engineers Propose “Project REBIRTH” to Protect Aircraft from Crashes Using AI, Airbags and Smart Materials
Could AI Nursing Robots Help Healthcare Staffing Shortages?
Turkish authorities seize leading broadcaster amid fraud and tax investigation
Qatari prime minister says Netanyahu ‘killed any hope’ for Israeli hostages
Apple Introduces Ultra-Thin iPhone Air, Enhanced 17 Series and New Health-Focused Wearables
Big Oil Slashes Jobs and Investments Amid Prolonged Low Crude Prices
Social Media Access Curtailed in Turkey After CHP Calls for Rallies Following Police Blockade of Istanbul Headquarters
Did the Houthis disrupt the internet in the Middle East? Submarine cables cut in the Red Sea
Gold Could Reach Nearly $5,000 if Fed Independence Is Undermined, Goldman Sachs Warns
Uruguay, Colombia and Paraguay Secure Places at 2026 World Cup
Trump Administration Advances Plans to Rebrand Pentagon as Department of War Instead of the Fake Term Department of Defense
Tether Expands into Gold Sector with Profit-Driven Diversification
Trump’s New War – and the ‘Drug Tyrant’ Fearing Invasion: ‘1,200 Missiles Aimed at Us’
At the Parade in China: Laser Weapons, 'Eagle Strike,' and a Missile Capable of 'Striking Anywhere in the World'
Information Warfare in the Age of AI: How Language Models Become Targets and Tools
Israeli Airstrike in Yemen Kills Houthi Prime Minister
After the Shock of Defeat, Iranians Yearn for Change
YouTube Altered Content by Artificial Intelligence – Without Permission
Iran Faces Escalating Water Crisis as Protests Spread
More Than Half a Million Evacuated as Typhoon Kajiki Heads for Vietnam
HSBC Switzerland Ends Relationships with Over 1,000 Clients from Saudi Arabia, Lebanon, Qatar, and Egypt
Sharia Law Made Legally Binding in Austria Despite Warnings Over 'Incompatible' Values
Dogfights in the Skies: Airbus on Track to Overtake Boeing and Claim Aviation Supremacy
Tim Cook Promises an AI Revolution at Apple: "One of the Most Significant Technologies of Our Generation"
Are AI Data Centres the Infrastructure of the Future or the Next Crisis?
Miles Worth Billions: How Airlines Generate Huge Profits
Zelenskyy Returns to White House Flanked by European Allies as Trump Pressures Land-Swap Deal with Putin
Beijing is moving into gold and other assets, diversifying away from the dollar
Cristiano Ronaldo Makes Surprise Stop at New Hong Kong Museum
Zelenskyy to Visit Washington after Trump–Putin Summit Yields No Agreement
×