Nike and Reebok: Tim Tebow Jersey Sales

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The question here is whether Reebok’s move to maximize sales strategy up to the last day of its contract with the quarterback Tim Tebow and whether Nike has every right to file a lawsuit against Reebok on the sales campaign prior to the day of turnover. From a consumer’s point of view, it is an irrelevant issue because consumers will often go after for that last jersey as a memento of their favourite quarterback. From the standpoint of advertising and sales there is a certain impact Reebok’s move has with the future sales of Nike on jerseys bearing Tim Tebows’ name and number. In lieu of Reebok being the official carrier of Tim Tebow apparel for 10 years, the legal team of each group should have signed an agrrement regarding the transition period from Reebok to Nike. Ferrand et al (2007) explains that a certain contract between previous licensee and current licensee has a closure that pertains to the market period of selling the products by the previous licensee. Moreover, the authors elucidate that previous license owners have the right to maintain the sale and distribution until the day the contract ends up to a maximum of 30 days before all unsold products are withdrawn from the market. This is the part of the practice in transferring rights of sponsorship for sports teams as illustrated by Ferrand et al (2007). Nike, on the other hand, presented a problem related to advertising which should be investigated properly, which is the aspect pertaining to the jersey number that is printed by Reebok and the image that will be used by Tim Tebow since he will transfer to a different team and will be using a different number altogether. In advertising Mullin et al states that a major concern by sports advertisers is perceptual distortion and must be addressed before it is established as a fact. Moreover, advertising projects messages creates awareness and communicative information, thus, a concern raised by Nike against Reeboks jersey sales. Products like jerseys and other apparels are often used as a form of advertising because the market can relate to it and stick with the product for a long period thus generating a huge amount of sales revenue for the licensee.

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