T-M-I from T-I-M

When Pinball was banned in the USA (1940's-1976)

I committed myself to learn something new every day and this was Day 202.  It's so good I had to put it on my blog:

 

Pinball was banned from the early 1940's until 1976 first in NY but then in LA, Chicago, Milwaukee and New Orleans followed suit.

The movie Licorice Pizza (which I reviewed and was disappointed by) briefly includes this in the plot. I thought it was made up, I was wrong.

The stated purpose at the time was that it's to protect children from wasting their money and probably their time too. It was somehow also folded into the idea of war time waste of resources.

It became the world of the rebels until 1976 when the CA Supreme Court struck it down.

Unbelievably "During the 1960 presidential election, Republicans tried to smear Democratic candidate John F. Kennedy by releasing a group photograph that included him with a silent partner in an Indiana pinball operation." (see article link below)

I take two really important things from this story:

SO many people complain about video games these days. I get they are by design more addictive these days. And that worry misplaced or not predated us.

Politics is ALWAYS politics.

Same as it EVER was.

https://www.history.com/news/that-time-america-outlawed-pinball 

Nike's Kap decision was mostly about business

I saw the Colin Kapernick ad that will show tonight.  I support athletes right to protest in the way they are and don’t feel it’s disrespectful, but the truth for me is that’s beside the point.

I look at what Nike did as 90% business and 10% moral stand. 

The shoe deal market is extremely competitive for the elite athletes.  And of those elite athletes, in my estimation, more would want to join a team that backs Kap than doesn’t.  They aren’t all like that and it’s not the only criteria but it’s a competitive differentiator.  And it’s consistent with the newer version of athletes like LeBron James who takes a stand.  The MJ era of both sides buy shoes are over, it’s too narrow a view point.

The elite athletes that they attract have global not just national reach. 

Nike’s North America sales change 2017 v 2018?  Down 1% ($15 Bill in 2017 to $14 Bill in 2018)

Nike’s non North America sales change 2017 v 2018?  Up 26%  ($15 Bill in 2017 to $19 Bill in 2018)

I doubt most global buyers care about this debate but they do care about and align with the elite athletes.

My bet is the young people who the company cares most about won’t think twice about buying the shoes they want for the best players.  The top 3 sellers (LeBron, KD, Kyrie) are the athletes kids love most, except for maybe Stephen Curry who all the kids love (who actually placed 4^th for 2018). 

You might ask, wasn’t it courageous given the 10 year NFL sponsorship relationship?  I’d say no.  They are in control there and there is no way the NFL breaks the relationship.  And if I had to bet I’d say in 10 years the likely prevailing narrative will be more in favor of what Colin Kapernick stands for than what many of the owners and the President seem to think it’s standing for.

I read in many places about the stock “hit” that Nike took.  As of today, the stock is $4 off its 52 week high and $29 higher than its 52 week low.  The markets discount this stuff way quicker than you might think.

So people may end up burning their shoes and cutting their socks but the hard fact is Nike doesn’t care.  They are playing a much bigger game and that market that’s turning from them is not as attractive as the one they care most about. 

I have to admit it’s funny to see how the shoe burning and sock cutting and boycotts that are done in the “give them a taste of their own medicine” energy are likely to have somewhere between a nothing burger and zero impact.

I still think it took some courage to do what they did so boldly.  I saw the commercial and love it. 

But in the end, this was a business decision and I think it was a brilliant one.