Nike Drops Soccer Team Sponsorship

Nike Inc. said it will cancel its $15-million-a-year sponsorship of the Italian national soccer team, once seen as a jewel of the company’s soccer sports marketing program. While ending its sponsorship of a powerhouse soccer team such as Italy’s would have been unthinkable for Nike in past years, the announcement drew praise from Wall Street analysts, who called it evidence that Nike is serious about cutting costs. Tom Clarke, Nike president and chief operating officer, assured analysts that the Beaverton, Ore.-based company will return to sales growth in its 2000 fiscal year, which begins June 1. He did warn, however, that the turnaround will be slow and steady. Nike’s shares fell $1.31 to close at $49.44 on the NYSE.