1 00:00:00,280 --> 00:00:03,760 Speaker 1: This is the business of sports. Should Major League Baseball 2 00:00:04,000 --> 00:00:06,840 Speaker 1: shorten up the season? How do we present football to 3 00:00:06,920 --> 00:00:08,920 Speaker 1: the audience of the future. I don't think that most 4 00:00:08,920 --> 00:00:12,160 Speaker 1: players understand the power that they have. The future of 5 00:00:12,160 --> 00:00:15,920 Speaker 1: Indy car racing is looking bright. Scott Sashnik. Very basic 6 00:00:15,960 --> 00:00:18,959 Speaker 1: math here, more bidders means more money, Evan Nobody Williams. 7 00:00:18,960 --> 00:00:22,079 Speaker 1: The team value has essentially quadruples. And the leaders in 8 00:00:22,120 --> 00:00:24,680 Speaker 1: the sports industry. Time to bring in our guest al 9 00:00:24,800 --> 00:00:28,200 Speaker 1: stand runner, National Hockey League Commissioner Gary Betman, Atlanta Braves 10 00:00:28,200 --> 00:00:32,360 Speaker 1: president Derek Schiller, Patriots President Jonathan Kraft. Bloomberg Business of 11 00:00:32,400 --> 00:00:35,839 Speaker 1: Sports from Bloomberg Radio. Hello, I'm Michael barn and I'm 12 00:00:35,840 --> 00:00:38,559 Speaker 1: Evan Novie Williams. Every week at this time, plus Mondays 13 00:00:38,560 --> 00:00:41,080 Speaker 1: and Wednesdays, we explore the big money issues in the 14 00:00:41,080 --> 00:00:43,360 Speaker 1: world of sports. Coming up on the show, we sit 15 00:00:43,479 --> 00:00:46,400 Speaker 1: down with one of the most powerful women at Nike. 16 00:00:46,560 --> 00:00:49,920 Speaker 1: Stay tuned for a conversation with Heidi O'Neill, who runs 17 00:00:50,040 --> 00:00:53,880 Speaker 1: Nike's entire retail strategy are Co. Scott Sashnik will join 18 00:00:53,960 --> 00:00:55,640 Speaker 1: us for that, but he's gonna sit out this first part. 19 00:00:55,640 --> 00:00:59,760 Speaker 1: So Michael, let's get into the top stories of the week. Yes, 20 00:01:00,120 --> 00:01:05,800 Speaker 1: let's start with the former San Francisco forty quarterback Colin Kaepernick. 21 00:01:06,120 --> 00:01:10,200 Speaker 1: He is working out for several NFL teams this weekend 22 00:01:10,280 --> 00:01:12,800 Speaker 1: in Atlanta. Talk about a weird one. I don't know 23 00:01:12,840 --> 00:01:16,000 Speaker 1: how closely you've followed everything that's that's going on around this. 24 00:01:16,200 --> 00:01:19,360 Speaker 1: You're right, this weekend, Colin Kaepernick is going to work 25 00:01:19,360 --> 00:01:21,959 Speaker 1: out on Saturday in Atlanta in front of a number 26 00:01:22,000 --> 00:01:25,039 Speaker 1: of we don't know how many NFL teams. Uh. It 27 00:01:25,120 --> 00:01:27,400 Speaker 1: sounds like he was caught off guard by the NFL, 28 00:01:27,440 --> 00:01:29,760 Speaker 1: which organized the thing, telling him they wanted to do 29 00:01:29,800 --> 00:01:31,840 Speaker 1: it. It It sounds like NFL teams were also caught off 30 00:01:31,840 --> 00:01:35,639 Speaker 1: guard here in the front office told them. Uh. Colin 31 00:01:35,720 --> 00:01:38,600 Speaker 1: was given apparently two hours to decide if he was 32 00:01:38,640 --> 00:01:42,119 Speaker 1: willing to do it. The location, the time, we're both 33 00:01:42,200 --> 00:01:45,399 Speaker 1: non negotiable. Uh. It's happening on a Saturday, which, for 34 00:01:45,440 --> 00:01:48,600 Speaker 1: folks who aren't familiar with the NFL schedule, Saturday is 35 00:01:48,680 --> 00:01:52,720 Speaker 1: essentially lockdown mode for any decision maker within an NFL franchise. Right, 36 00:01:52,720 --> 00:01:57,160 Speaker 1: They're all prepared to play on Sunday or Monday, which 37 00:01:57,240 --> 00:01:59,880 Speaker 1: essentially means that whoever gets sent to Atlanta is probably 38 00:01:59,880 --> 00:02:03,080 Speaker 1: not going to be the high ranking decision maker in 39 00:02:03,160 --> 00:02:06,080 Speaker 1: the lot. It's unclear if Colin is going to interview 40 00:02:06,080 --> 00:02:08,600 Speaker 1: with teams. There's some disagreement about that. It's unclear if 41 00:02:08,600 --> 00:02:09,880 Speaker 1: the NFL is going to tell him who's going to 42 00:02:09,919 --> 00:02:12,120 Speaker 1: show up. There's some disagreement about that as well. There 43 00:02:12,200 --> 00:02:14,280 Speaker 1: is a lot of unknown and a lot of bizarre 44 00:02:14,639 --> 00:02:17,480 Speaker 1: around this story. You know, the rumor mill, because I'm 45 00:02:17,520 --> 00:02:21,840 Speaker 1: all about rumors. One of the teams interested, unbelievably, the 46 00:02:21,880 --> 00:02:26,120 Speaker 1: New England Patriots. It would make sense if if you 47 00:02:26,280 --> 00:02:29,680 Speaker 1: had him as a second or third string quarterback, Colin 48 00:02:29,760 --> 00:02:33,640 Speaker 1: Kaepernick behind Tom Brady. I could see that happening. Yeah, 49 00:02:33,800 --> 00:02:36,160 Speaker 1: I remain and folks who have listened to the show, no, 50 00:02:36,320 --> 00:02:37,960 Speaker 1: I think the three of us may be in agreement. 51 00:02:37,960 --> 00:02:40,760 Speaker 1: I remain skeptical that Colin ever plays again. It's been 52 00:02:40,800 --> 00:02:42,959 Speaker 1: it's been three years. You know, he just settled his 53 00:02:43,040 --> 00:02:46,280 Speaker 1: lawsuit recently. He was suing the league for a while. Um, 54 00:02:46,400 --> 00:02:49,280 Speaker 1: this is probably progress in some capacity, right. Any chance 55 00:02:49,360 --> 00:02:51,720 Speaker 1: he gets he clearly wants to play again. Any chance 56 00:02:51,760 --> 00:02:54,280 Speaker 1: he gets to work out in front of NFL teams, 57 00:02:54,280 --> 00:02:57,040 Speaker 1: I think is an opportunity. He's going to jump at um. 58 00:02:57,120 --> 00:03:00,120 Speaker 1: But it remains to be seen how serious both the 59 00:03:00,200 --> 00:03:03,560 Speaker 1: league as a as a central office and individual teams 60 00:03:03,560 --> 00:03:05,519 Speaker 1: are going to take this trap. Let's stay with the 61 00:03:05,639 --> 00:03:08,280 Speaker 1: NFL for our next topic, which brings us to the 62 00:03:08,360 --> 00:03:11,720 Speaker 1: Super Bowl. So far, Fox Sports has sold a whopping 63 00:03:12,160 --> 00:03:15,400 Speaker 1: eight per cent of its commercials for the game. Supplies 64 00:03:15,440 --> 00:03:17,239 Speaker 1: are limited. Yeah, this is the bummer. He can't be 65 00:03:17,240 --> 00:03:18,680 Speaker 1: here to talk about it because this is this is 66 00:03:18,760 --> 00:03:22,200 Speaker 1: news that's got broke on Thursday. Yeah, this looks pretty 67 00:03:22,200 --> 00:03:25,440 Speaker 1: good for Fox right now. Right, Ratings across the NFL 68 00:03:25,520 --> 00:03:28,120 Speaker 1: right now are trending up. You know, this narrative that 69 00:03:28,480 --> 00:03:32,000 Speaker 1: live sports, and especially live football is kind of impervious 70 00:03:32,040 --> 00:03:34,600 Speaker 1: to a lot of the viewership declines that we've seen 71 00:03:34,639 --> 00:03:38,000 Speaker 1: across TV certainly holding up at least for this year, 72 00:03:38,000 --> 00:03:40,720 Speaker 1: and as a result, the demand for Super Bowl ads 73 00:03:40,880 --> 00:03:45,000 Speaker 1: pretty high. Look at every ratings view for the week 74 00:03:45,440 --> 00:03:48,560 Speaker 1: among the networks and you will see that the top 75 00:03:48,680 --> 00:03:53,200 Speaker 1: rated for the most part program Sunday Night Football NFL 76 00:03:53,360 --> 00:03:55,400 Speaker 1: is king. Yeah, and and there's you know, some new 77 00:03:55,480 --> 00:03:57,560 Speaker 1: changes that are happening, I believe for the first time 78 00:03:57,600 --> 00:03:59,720 Speaker 1: this year. And this might be wrong. But I think 79 00:03:59,760 --> 00:04:01,800 Speaker 1: for the time there's gonna be four commercial breaks per 80 00:04:01,840 --> 00:04:04,560 Speaker 1: quarter in the Super Bowl instead of five, so that 81 00:04:04,640 --> 00:04:07,600 Speaker 1: changes the inventory selection a little bit. Uh, the money 82 00:04:07,680 --> 00:04:10,760 Speaker 1: is going up five points six million dollars if you 83 00:04:10,800 --> 00:04:13,200 Speaker 1: want to buy a single thirty second spot. That is 84 00:04:13,400 --> 00:04:15,720 Speaker 1: amazing to me. That's up from I think around five 85 00:04:15,720 --> 00:04:19,880 Speaker 1: point three last year with CBS. I don't think we're 86 00:04:19,920 --> 00:04:23,960 Speaker 1: that far away from the six million dollar Super Bowl ad. Finally, 87 00:04:24,000 --> 00:04:27,680 Speaker 1: who doesn't like fun in quirky? Let's talk about college 88 00:04:27,720 --> 00:04:31,400 Speaker 1: basketball story that has to do with coach contracts at 89 00:04:31,480 --> 00:04:35,800 Speaker 1: Virginia Commonwealth University and you have to explain this to me? 90 00:04:35,920 --> 00:04:38,200 Speaker 1: What is going on? Yeah? I love this story and 91 00:04:38,240 --> 00:04:40,560 Speaker 1: I am bummed that I did not notice it when 92 00:04:40,600 --> 00:04:44,599 Speaker 1: I read through college contracts fairly often. Um, but VCU 93 00:04:44,720 --> 00:04:47,560 Speaker 1: one of the better kind of mid major college basketball schools. 94 00:04:47,800 --> 00:04:49,720 Speaker 1: Whenever they hire a coach, and they've been doing this 95 00:04:49,760 --> 00:04:52,000 Speaker 1: for for a couple of decades now, they include a 96 00:04:52,000 --> 00:04:54,120 Speaker 1: writer in his contract that if he leaves before the 97 00:04:54,240 --> 00:04:56,560 Speaker 1: term is up, which usually means he's hired by a 98 00:04:56,600 --> 00:05:00,479 Speaker 1: bigger program, that program has to agree to a home 99 00:05:00,520 --> 00:05:04,120 Speaker 1: and home two basketball games against VCU and why why 100 00:05:04,160 --> 00:05:06,760 Speaker 1: that matters for folks who aren't familiar with the way 101 00:05:06,800 --> 00:05:09,640 Speaker 1: the scheduling works. A good mid major team like v 102 00:05:09,720 --> 00:05:12,680 Speaker 1: c U always struggles to get good teams to play them, 103 00:05:12,839 --> 00:05:16,719 Speaker 1: especially to come to Richmond and play them there. Because 104 00:05:16,760 --> 00:05:19,440 Speaker 1: if you lose to you know, VCU, that's a bad 105 00:05:19,520 --> 00:05:22,520 Speaker 1: loss if you're a power power five basketball school, and 106 00:05:22,560 --> 00:05:25,000 Speaker 1: if and you might very well lose, the team is good, 107 00:05:25,160 --> 00:05:26,599 Speaker 1: and if you beat them, it doesn't look like a 108 00:05:26,600 --> 00:05:29,560 Speaker 1: great win always on paper. So they've included this rider. 109 00:05:29,600 --> 00:05:33,279 Speaker 1: It's worked successfully. Jeff Capel left for Oklahoma. When Oklahoma 110 00:05:33,320 --> 00:05:36,039 Speaker 1: came back to Richmond, they lost to vc U. Anthony 111 00:05:36,080 --> 00:05:39,280 Speaker 1: Grant left for Alabama. When Alabama came back to VCU, 112 00:05:39,400 --> 00:05:42,080 Speaker 1: they lost. Shaka Smart when he left for Texas, they 113 00:05:42,120 --> 00:05:44,920 Speaker 1: beat VCU. But just this week, Will Wade and top 114 00:05:45,640 --> 00:05:48,560 Speaker 1: l s U came back to Richmond and vc you 115 00:05:48,600 --> 00:05:51,440 Speaker 1: beat them, right, So this is a very clever way 116 00:05:51,480 --> 00:05:54,760 Speaker 1: in my opinion, of getting uh forcing good teams to 117 00:05:54,880 --> 00:05:58,360 Speaker 1: play you in your own stadium when you do end 118 00:05:58,400 --> 00:06:01,360 Speaker 1: up losing out on your coaches. I don't think Acron 119 00:06:01,440 --> 00:06:05,479 Speaker 1: football has this problem. They are the fabulous Oh intend 120 00:06:06,520 --> 00:06:10,560 Speaker 1: Oh my goodness, god, bless them. I love them that 121 00:06:10,600 --> 00:06:13,360 Speaker 1: if you have if you had a Michigan or your 122 00:06:13,480 --> 00:06:16,279 Speaker 1: Detroit area of college football team is acharn that's not 123 00:06:16,320 --> 00:06:18,840 Speaker 1: actually close to Detroit. It's close. Yeah, it's not that far. 124 00:06:20,120 --> 00:06:22,640 Speaker 1: Do you have? Is there a college football team roofing 125 00:06:22,720 --> 00:06:27,400 Speaker 1: for you with him? Okay, press box, but anyway, let's 126 00:06:27,440 --> 00:06:29,120 Speaker 1: get to this week's interview with one of the most 127 00:06:29,200 --> 00:06:32,800 Speaker 1: powerful women at Nike. Heini O'Neill is President of direct 128 00:06:32,839 --> 00:06:35,960 Speaker 1: to consumer at Nike. She runs the sports wear maker's 129 00:06:36,080 --> 00:06:39,200 Speaker 1: entire retail strategy and we are glad to have her 130 00:06:39,279 --> 00:06:42,520 Speaker 1: on the program today. Heini, thanks for joining us, Thank 131 00:06:42,560 --> 00:06:44,800 Speaker 1: you for having me. There's so much going on with 132 00:06:44,920 --> 00:06:47,640 Speaker 1: Nike right now, a new CEO, new stores, and new 133 00:06:47,680 --> 00:06:49,719 Speaker 1: retail strategy, and we'll get to all of that, but 134 00:06:49,760 --> 00:06:52,000 Speaker 1: I want to start with the newest piece of news. 135 00:06:52,279 --> 00:06:54,120 Speaker 1: Earlier this week, you guys announced that you were going 136 00:06:54,160 --> 00:06:56,320 Speaker 1: to stop selling directly on Amazon. It was a two 137 00:06:56,400 --> 00:06:59,000 Speaker 1: year pilot program. Can you give us some insight into 138 00:06:59,000 --> 00:07:01,360 Speaker 1: how you made the decision after two years to say, 139 00:07:01,400 --> 00:07:03,120 Speaker 1: you know what, No, we're done here. We're not going 140 00:07:03,200 --> 00:07:06,360 Speaker 1: to sell directly on Amazon anymore. Sure, Yes, we've been 141 00:07:06,720 --> 00:07:09,240 Speaker 1: uh with Amazon for a couple of years and a 142 00:07:09,640 --> 00:07:13,560 Speaker 1: pilot program, and of course over the entire two years 143 00:07:13,600 --> 00:07:19,760 Speaker 1: we've been piloting, learning, testing, UH the experience, and and 144 00:07:19,840 --> 00:07:24,440 Speaker 1: we have made a decision to end this pilot because 145 00:07:25,400 --> 00:07:27,320 Speaker 1: you know, well, well, I'm sure we'll talk about this 146 00:07:27,360 --> 00:07:30,840 Speaker 1: a little more today, but we really believe in a 147 00:07:30,880 --> 00:07:36,320 Speaker 1: consumer experience of the future that is elevated, that provides 148 00:07:36,360 --> 00:07:40,760 Speaker 1: direct connections with our consumers and UH and and we 149 00:07:40,840 --> 00:07:44,800 Speaker 1: believe we we want to have great partners as part 150 00:07:44,840 --> 00:07:48,240 Speaker 1: of that ecosystem, and but we want to make sure 151 00:07:48,280 --> 00:07:51,360 Speaker 1: that those are experiences are the most premium experience we 152 00:07:51,400 --> 00:07:53,720 Speaker 1: can possibly provide, and that we have an opportunity to 153 00:07:53,720 --> 00:07:58,040 Speaker 1: build a direct and unbreakable relationship with our members. So 154 00:07:58,080 --> 00:08:01,600 Speaker 1: you're talking about premium experiences there. What isn't premium about 155 00:08:01,680 --> 00:08:04,840 Speaker 1: your experience with Amazon? What kind of specifically led you 156 00:08:05,160 --> 00:08:07,560 Speaker 1: to decide that wasn't the avenue for you? Well, you know, 157 00:08:07,640 --> 00:08:09,680 Speaker 1: I mean, you know, what I would just say is, 158 00:08:09,920 --> 00:08:13,000 Speaker 1: if you have a chance, you know, Um, we spent 159 00:08:13,120 --> 00:08:15,960 Speaker 1: some time on the Nike app and and look at 160 00:08:16,200 --> 00:08:20,480 Speaker 1: how we serve product and recommendations to consumers. Were able 161 00:08:21,080 --> 00:08:24,480 Speaker 1: through our knowledge of their of their you know, history 162 00:08:24,520 --> 00:08:27,200 Speaker 1: with us, their purchase history as well as they're maybe 163 00:08:27,280 --> 00:08:30,640 Speaker 1: running history or training history to make sure we're a 164 00:08:30,680 --> 00:08:34,760 Speaker 1: coaching partner, a community partner, and and and can really 165 00:08:34,840 --> 00:08:37,520 Speaker 1: build a relationship over time to serve them better. And 166 00:08:37,559 --> 00:08:40,679 Speaker 1: hopefully you guys have had a chance to experience that yourself. 167 00:08:40,840 --> 00:08:43,200 Speaker 1: But that that that's the kind of future we see 168 00:08:43,320 --> 00:08:46,760 Speaker 1: for um for our consumers. The big difference they are 169 00:08:46,800 --> 00:08:50,160 Speaker 1: being you know, you're talking about direct to consumer areas 170 00:08:50,240 --> 00:08:53,920 Speaker 1: right directly people interacting with Nike specifically, uh. And then 171 00:08:53,960 --> 00:08:55,920 Speaker 1: Amazon is is kind of on the other side, the 172 00:08:55,920 --> 00:08:59,040 Speaker 1: wholesale side. And right now, you know about sixty eight 173 00:08:59,080 --> 00:09:01,840 Speaker 1: percent of Nike's you know, forty billion dollars of sales 174 00:09:01,920 --> 00:09:04,760 Speaker 1: each year goes through the wholesale side. Is the future 175 00:09:05,440 --> 00:09:09,920 Speaker 1: director consumer eventually does that ratio flip or is there 176 00:09:09,960 --> 00:09:13,120 Speaker 1: still some room for for wholesale partners for Nike. There's 177 00:09:13,160 --> 00:09:16,960 Speaker 1: absolutely room for wholesale partners with Nike, and and you know, 178 00:09:17,320 --> 00:09:20,800 Speaker 1: you'll see that as a big part of our innovation 179 00:09:21,200 --> 00:09:23,880 Speaker 1: going forward. In fact, we just uh and we see 180 00:09:23,960 --> 00:09:27,160 Speaker 1: multiple partners. You know, our our ecosystem of sport is 181 00:09:27,280 --> 00:09:30,400 Speaker 1: Nike direct consumer and it also includes a lot of 182 00:09:30,440 --> 00:09:33,959 Speaker 1: really great partners who also served consumer as well. We 183 00:09:34,160 --> 00:09:37,319 Speaker 1: just piloted a program with foot Locker, oh I'd say 184 00:09:37,320 --> 00:09:41,160 Speaker 1: about two months ago um in their Washington Heights store 185 00:09:41,160 --> 00:09:45,200 Speaker 1: where we um where we were able to have a 186 00:09:45,240 --> 00:09:48,120 Speaker 1: better Nike experience just physically in that store. But then 187 00:09:48,200 --> 00:09:51,000 Speaker 1: we also brought the Nike app at retail to the 188 00:09:51,040 --> 00:09:54,000 Speaker 1: Washington Heights store, so consumers didn't have a dead end 189 00:09:54,040 --> 00:09:57,160 Speaker 1: relationship with Nike when they went that went to the door, 190 00:09:57,200 --> 00:09:59,679 Speaker 1: they knew they were shopping Nike. They expect Nike to 191 00:09:59,679 --> 00:10:02,559 Speaker 1: actually know them, to serve them, and and so we 192 00:10:02,559 --> 00:10:05,960 Speaker 1: were able to make that connectivity in a great digital 193 00:10:06,040 --> 00:10:09,000 Speaker 1: and physical shopping experience for consumers. And so if you 194 00:10:09,000 --> 00:10:12,760 Speaker 1: look at that foot Locker Washington Heights pilot, I think 195 00:10:12,800 --> 00:10:16,800 Speaker 1: that's a great example of how will continue to have 196 00:10:16,920 --> 00:10:19,840 Speaker 1: partners be a really important part of our ecosystem. Heidi, 197 00:10:19,880 --> 00:10:21,280 Speaker 1: I think we have a nice cross section here the 198 00:10:21,280 --> 00:10:23,960 Speaker 1: millennial and Eban. You've got me a little above Evan, 199 00:10:24,000 --> 00:10:27,560 Speaker 1: and then you've got the dinosaur and Bar. For me, 200 00:10:27,679 --> 00:10:31,199 Speaker 1: I guess I'm with Bar. You know it, we'll get 201 00:10:31,200 --> 00:10:34,679 Speaker 1: to him. But what do you say to me? How 202 00:10:34,720 --> 00:10:36,960 Speaker 1: do you get to me or or do you have 203 00:10:37,000 --> 00:10:38,920 Speaker 1: you already written me off? And you care about my 204 00:10:39,000 --> 00:10:42,280 Speaker 1: ten year old son, because for me, sneaker shopping I 205 00:10:42,320 --> 00:10:45,920 Speaker 1: do not believe is going to ever entail. My cell 206 00:10:45,960 --> 00:10:49,400 Speaker 1: phone and an app and QR codes. It's just not 207 00:10:49,720 --> 00:10:51,400 Speaker 1: what I need. I mean, I just want to pair sneakers. 208 00:10:51,440 --> 00:10:53,320 Speaker 1: That one looks cool. The price is good, I'll take it. 209 00:10:53,520 --> 00:10:56,920 Speaker 1: So what do you say to me? Well, you know, actually, 210 00:10:57,000 --> 00:10:59,280 Speaker 1: what I say. I think one of the great things 211 00:10:59,320 --> 00:11:04,200 Speaker 1: that we are doing on a digital transformation and reinventing 212 00:11:04,400 --> 00:11:08,000 Speaker 1: a retail at Nike is we're really careful to not 213 00:11:08,120 --> 00:11:11,360 Speaker 1: get binary or to pick a singular path or a 214 00:11:11,360 --> 00:11:14,400 Speaker 1: singular consumer. And you know, I think, you know, I 215 00:11:14,440 --> 00:11:17,400 Speaker 1: think there were moments where retailers sought there would never 216 00:11:17,440 --> 00:11:20,240 Speaker 1: be a store again, the apocalypse and and all stores 217 00:11:20,240 --> 00:11:23,120 Speaker 1: will die. And if we had followed that, then we 218 00:11:23,160 --> 00:11:27,600 Speaker 1: wouldn't have the enjoy the kind of the winds that 219 00:11:27,640 --> 00:11:31,400 Speaker 1: we're having right now. And so you know, what we're 220 00:11:31,480 --> 00:11:35,679 Speaker 1: doing is we're looking at building an amazing text act 221 00:11:35,760 --> 00:11:39,520 Speaker 1: that allows us to serve people consumer consumers personally on 222 00:11:39,600 --> 00:11:43,560 Speaker 1: their terms. So their terms, maybe a daily engagement with 223 00:11:43,600 --> 00:11:46,240 Speaker 1: an app or a sneaker head that is looking for 224 00:11:46,800 --> 00:11:50,400 Speaker 1: um the win on our next launch, or maybe a 225 00:11:50,400 --> 00:11:53,520 Speaker 1: consumer who just comes to a store who wants to 226 00:11:53,520 --> 00:11:56,240 Speaker 1: try in some product but has helped to know what 227 00:11:56,320 --> 00:11:59,400 Speaker 1: they purchased last time in the store. And so I 228 00:11:59,440 --> 00:12:03,520 Speaker 1: think our experiences, like our brand is is, are pretty broad, 229 00:12:03,559 --> 00:12:06,199 Speaker 1: and our hope is that we can serve everyone better 230 00:12:06,480 --> 00:12:09,160 Speaker 1: in a personal way on their terms. So then what's 231 00:12:09,200 --> 00:12:12,080 Speaker 1: the approach to data analytics at Nike? How much do 232 00:12:12,160 --> 00:12:15,080 Speaker 1: you want to know about me your other consumers? How 233 00:12:15,120 --> 00:12:17,120 Speaker 1: far down do you want to drill down? Like my 234 00:12:17,160 --> 00:12:20,440 Speaker 1: car tells me, Hey, it's time for service? Is Nike 235 00:12:20,520 --> 00:12:22,480 Speaker 1: going to tell me, Yeah, you're about time. You're probably 236 00:12:22,520 --> 00:12:24,360 Speaker 1: worn on even on on the heel of your shoe. 237 00:12:24,400 --> 00:12:27,680 Speaker 1: It's time to come and pick up a new pair. Yeah. Well, 238 00:12:27,760 --> 00:12:31,120 Speaker 1: you know, so, first of all, consumers were super fortunate 239 00:12:31,120 --> 00:12:34,400 Speaker 1: because consumers want to have a relationship with psych and 240 00:12:34,400 --> 00:12:37,400 Speaker 1: and we're we're proving and and and building a real 241 00:12:37,400 --> 00:12:40,800 Speaker 1: trust with our consumers around data because they know through 242 00:12:40,960 --> 00:12:44,319 Speaker 1: knowing more about them that we can serve them better. 243 00:12:44,480 --> 00:12:48,319 Speaker 1: And so we're simply, uh, we're simply building a better 244 00:12:48,360 --> 00:12:52,640 Speaker 1: personalized experience for consumers, So things like I'll give you 245 00:12:52,720 --> 00:12:56,240 Speaker 1: just a few examples of uses of data that have 246 00:12:56,480 --> 00:13:00,400 Speaker 1: I think made for great experiences. So we on our 247 00:13:00,480 --> 00:13:03,840 Speaker 1: running app, our Nike UM Running Club app, which is 248 00:13:04,040 --> 00:13:06,800 Speaker 1: the largest downloaded app in the world, kind of an 249 00:13:06,800 --> 00:13:12,960 Speaker 1: amazing asset we have, we discovered that consumers were running 250 00:13:13,000 --> 00:13:15,400 Speaker 1: more at night than we would have ever imagined. So 251 00:13:15,480 --> 00:13:17,920 Speaker 1: we we kind of leveraged that power of data with 252 00:13:17,960 --> 00:13:21,559 Speaker 1: the power of Nike product creation. I'm sorry to jump in, 253 00:13:21,640 --> 00:13:24,360 Speaker 1: I'm just very curious while you're on that point, do 254 00:13:24,520 --> 00:13:28,920 Speaker 1: you do you know whether the instances of men running 255 00:13:28,920 --> 00:13:32,560 Speaker 1: at night is higher than women just for safety reasons? Yeah, 256 00:13:32,840 --> 00:13:35,679 Speaker 1: you know, Actually I don't know that, but that would 257 00:13:35,679 --> 00:13:39,280 Speaker 1: be interesting because where you're going is exactly where we're 258 00:13:39,280 --> 00:13:42,440 Speaker 1: going is safety and and and we realized, you know, Nike, 259 00:13:42,920 --> 00:13:45,960 Speaker 1: in the spirit of handshake of trust that uh, we 260 00:13:46,000 --> 00:13:47,880 Speaker 1: wanted to make sure our runners were safe. So we 261 00:13:47,960 --> 00:13:52,760 Speaker 1: built a reflective pack and we actually sent we all 262 00:13:53,000 --> 00:13:56,280 Speaker 1: targeted the messaging and the product directly to the consumers 263 00:13:56,280 --> 00:13:59,400 Speaker 1: that we knew were running at night. So we didn't 264 00:13:59,400 --> 00:14:01,600 Speaker 1: go in who we we didn't look at it from 265 00:14:01,600 --> 00:14:04,440 Speaker 1: a gender perspective because Frankly, what we cared about is safety, 266 00:14:04,520 --> 00:14:07,400 Speaker 1: regardless of if you're a man or a woman, um 267 00:14:07,679 --> 00:14:10,280 Speaker 1: and and and so you know that resonated really well. 268 00:14:10,320 --> 00:14:13,480 Speaker 1: I'm sitting here right now in our studio twenty three, 269 00:14:14,360 --> 00:14:19,480 Speaker 1: which is our first ever um Our, our first innovation 270 00:14:19,600 --> 00:14:23,600 Speaker 1: hub in New York, and we this team is working 271 00:14:23,600 --> 00:14:28,400 Speaker 1: on some amazing work through data in that in a 272 00:14:28,400 --> 00:14:30,720 Speaker 1: couple of ways. One they have a maker studio here, 273 00:14:30,760 --> 00:14:33,760 Speaker 1: so they're able to sense through data and through communities 274 00:14:33,920 --> 00:14:37,480 Speaker 1: opportunities from a peril and footwear product creation, and right 275 00:14:37,520 --> 00:14:40,760 Speaker 1: here in the building are able to make and create 276 00:14:40,920 --> 00:14:44,840 Speaker 1: a product for consumers are um day Lameo shoe, which 277 00:14:44,920 --> 00:14:50,200 Speaker 1: was launched this year, was a great example of building 278 00:14:50,240 --> 00:14:54,560 Speaker 1: a product for a community um and and um and 279 00:14:54,640 --> 00:14:56,840 Speaker 1: delivering it right here in kind of an end to 280 00:14:57,000 --> 00:15:00,480 Speaker 1: end innovation hub. We're talking to the isn't that a 281 00:15:00,680 --> 00:15:04,440 Speaker 1: Nike direct? Heidi O'Neill. And this is something now Deez 282 00:15:04,440 --> 00:15:07,040 Speaker 1: aer Bar has to win in on something and this 283 00:15:07,120 --> 00:15:08,880 Speaker 1: is something I do not get why this is a 284 00:15:08,920 --> 00:15:13,920 Speaker 1: controversy because some runners have complained that other runners have 285 00:15:13,960 --> 00:15:17,560 Speaker 1: an unfair advantage with a particular shoe. And what I 286 00:15:17,600 --> 00:15:21,800 Speaker 1: don't Get is well, so what I mean, you know, look, 287 00:15:21,880 --> 00:15:24,360 Speaker 1: if you I used to bowl, if you pick up 288 00:15:24,360 --> 00:15:28,080 Speaker 1: a house ball, guess what you're gonna bowl less than 289 00:15:28,120 --> 00:15:30,880 Speaker 1: the person that has their own equipment out there. And 290 00:15:30,960 --> 00:15:35,000 Speaker 1: unless the shoe has a jet with roller skates on it, 291 00:15:35,200 --> 00:15:38,240 Speaker 1: I don't see what the controversy is. Tell Heidi by 292 00:15:38,240 --> 00:15:49,040 Speaker 1: the way that your personal yes, that's but that's just stuck. 293 00:15:50,760 --> 00:15:55,840 Speaker 1: I won't tell you what it looked like. But go ahead. Uh, well, 294 00:15:55,880 --> 00:15:58,520 Speaker 1: you know, let let us start with I think, um 295 00:15:58,760 --> 00:16:01,640 Speaker 1: to your point something it is really important, and that 296 00:16:01,880 --> 00:16:07,680 Speaker 1: celebrating Elliott and Bridget and their accomplishments because uh, you 297 00:16:07,720 --> 00:16:12,000 Speaker 1: know the record breaking in Vienna and Bridget with her 298 00:16:12,000 --> 00:16:15,320 Speaker 1: win in Chicago should be the story. I mean it 299 00:16:15,440 --> 00:16:20,520 Speaker 1: honestly should. It's it's those those accomplishments are unreal and um, 300 00:16:20,600 --> 00:16:24,440 Speaker 1: and the accomplishments that you know, people work a lifetime 301 00:16:24,480 --> 00:16:27,960 Speaker 1: like me at Nike to make happen under a two 302 00:16:27,960 --> 00:16:32,800 Speaker 1: hour marathon that's increma exactly, yes, and uh and and 303 00:16:32,840 --> 00:16:36,160 Speaker 1: you know we do respect to I a ah and 304 00:16:36,280 --> 00:16:38,520 Speaker 1: the spirit of the rules, and of course, um, you 305 00:16:38,560 --> 00:16:42,200 Speaker 1: know want to see this through. But you know we 306 00:16:42,200 --> 00:16:44,880 Speaker 1: we we stand behind our athletes, and those athletes have 307 00:16:44,920 --> 00:16:47,160 Speaker 1: been side with side by side with us building the 308 00:16:47,200 --> 00:16:51,280 Speaker 1: innovation that will support their goals and their dreams and 309 00:16:51,480 --> 00:16:54,800 Speaker 1: their career. Heidi, the first time you and I met 310 00:16:54,880 --> 00:16:58,240 Speaker 1: was at the opening of the Nike's House of Innovation, 311 00:16:58,360 --> 00:17:00,960 Speaker 1: kind of the newest, highest tech Nike store here in 312 00:17:00,960 --> 00:17:03,640 Speaker 1: New York City, and I was kind of struck walking 313 00:17:03,680 --> 00:17:07,880 Speaker 1: through it. How much the Nike App plays into now 314 00:17:08,160 --> 00:17:11,119 Speaker 1: kind of the the Nike retail brick and mortar experience. 315 00:17:11,520 --> 00:17:14,320 Speaker 1: You can scan mannequins to see product, you can have 316 00:17:14,400 --> 00:17:17,080 Speaker 1: product delivered to the dressing room you're in. You can 317 00:17:17,160 --> 00:17:19,040 Speaker 1: check out. There are lockers that you can use to 318 00:17:19,080 --> 00:17:22,080 Speaker 1: pick up product you've already bought. How important kind of 319 00:17:22,119 --> 00:17:24,960 Speaker 1: moving forward is the Nike Mobile app seems to be 320 00:17:25,000 --> 00:17:26,760 Speaker 1: the center of it. And I thinking about this correctly 321 00:17:27,000 --> 00:17:28,760 Speaker 1: that the mobile app and the data you kind of 322 00:17:28,800 --> 00:17:31,520 Speaker 1: get from that is moving forward kind of the centerpiece 323 00:17:31,840 --> 00:17:35,679 Speaker 1: of Nike's retail strategy. Absolutely. I mean, you said it 324 00:17:35,760 --> 00:17:37,640 Speaker 1: probably better than I could. But you know, our Nike 325 00:17:37,720 --> 00:17:40,639 Speaker 1: App is our flagship app, and our Nike App is 326 00:17:40,680 --> 00:17:45,240 Speaker 1: also the foundation of our omni channel retail service, and 327 00:17:45,240 --> 00:17:48,000 Speaker 1: and it's cool is Uh, we're almost a year in 328 00:17:48,119 --> 00:17:50,960 Speaker 1: from when we saw each other, so that was January, right, 329 00:17:51,280 --> 00:17:55,480 Speaker 1: And and you know some of the services that consumers 330 00:17:55,480 --> 00:17:59,840 Speaker 1: are experiencing, like you said, shop the Look, instant check out. Uh. 331 00:18:00,359 --> 00:18:01,960 Speaker 1: And you know, we we've we've done a lot with 332 00:18:02,080 --> 00:18:04,800 Speaker 1: Instant Unlocked. We hadn't launched that when I saw you 333 00:18:04,880 --> 00:18:08,240 Speaker 1: at House of Innovation, which is basically like a pop 334 00:18:08,320 --> 00:18:11,879 Speaker 1: up in your app reward for being a member because 335 00:18:11,880 --> 00:18:13,920 Speaker 1: you just happened to walk in the store. So it's 336 00:18:13,920 --> 00:18:16,960 Speaker 1: an incredible surprise and delight and and and just in 337 00:18:16,960 --> 00:18:20,600 Speaker 1: our Houses of Innovation, we've done a big business on 338 00:18:20,800 --> 00:18:23,520 Speaker 1: consumers having that moment where a product pops up in 339 00:18:23,520 --> 00:18:26,679 Speaker 1: their app, and and and and we're finding, you know, 340 00:18:27,680 --> 00:18:31,160 Speaker 1: it's a great consumer experience. They want to stay connected 341 00:18:31,720 --> 00:18:34,080 Speaker 1: with us physically and digitally kind of break down the 342 00:18:34,080 --> 00:18:37,040 Speaker 1: walls of stores and channels. But we're also seeing some 343 00:18:37,440 --> 00:18:40,840 Speaker 1: really incredible business results. So we've we've had we have 344 00:18:41,000 --> 00:18:43,560 Speaker 1: enough background behind us now to know that a consumer 345 00:18:43,600 --> 00:18:47,399 Speaker 1: who actually downloads a Nike app in a store, which 346 00:18:47,760 --> 00:18:50,879 Speaker 1: we have many of and and our our portfolio are 347 00:18:51,040 --> 00:18:56,720 Speaker 1: seven point five greater value than a consumer an average 348 00:18:56,760 --> 00:18:59,120 Speaker 1: consumer on Nike Digital. So in a in a year, 349 00:18:59,160 --> 00:19:02,240 Speaker 1: they'll spend seven point five times the amount with Nike 350 00:19:02,359 --> 00:19:05,320 Speaker 1: than they would UM if they had downloaded the app. 351 00:19:05,359 --> 00:19:07,879 Speaker 1: So that just tells us that that, you know, the 352 00:19:08,040 --> 00:19:12,760 Speaker 1: mobile and UM retail experience being connected is important. And 353 00:19:12,760 --> 00:19:14,719 Speaker 1: and we we pick up where the app leaves off 354 00:19:14,760 --> 00:19:17,639 Speaker 1: and have an amazing team and house of innovation in 355 00:19:17,680 --> 00:19:20,480 Speaker 1: New York to who will serve you. So it's not 356 00:19:20,960 --> 00:19:22,919 Speaker 1: it's not a one or the other, but that that 357 00:19:22,960 --> 00:19:26,200 Speaker 1: app is becoming a really important part of the journey. 358 00:19:26,200 --> 00:19:30,040 Speaker 1: And we're really excited h to be launching the app 359 00:19:30,160 --> 00:19:32,880 Speaker 1: at retail in China in December. So if you think 360 00:19:32,920 --> 00:19:36,520 Speaker 1: about a big move to bring you know, that flagship 361 00:19:36,600 --> 00:19:40,879 Speaker 1: retail experience to China with our footprints there. When you 362 00:19:40,920 --> 00:19:43,680 Speaker 1: think about the data that you guys get from customers, 363 00:19:43,680 --> 00:19:45,159 Speaker 1: and you just gave a good example a couple of 364 00:19:45,160 --> 00:19:47,560 Speaker 1: minutes ago about the kind of the night time reflective 365 00:19:47,560 --> 00:19:50,159 Speaker 1: gear for runners, what's more valuable to you? Is it 366 00:19:50,200 --> 00:19:53,399 Speaker 1: the information that I tell you about myself or is 367 00:19:53,440 --> 00:19:57,320 Speaker 1: it the information that you glean from the things I buy? 368 00:19:57,920 --> 00:20:01,200 Speaker 1: Is behavior a better indicator and what people actually think 369 00:20:01,240 --> 00:20:04,720 Speaker 1: that they want? Well, you know, what I actually think 370 00:20:04,760 --> 00:20:06,800 Speaker 1: that it is the combination. And in fact, in the 371 00:20:06,840 --> 00:20:10,040 Speaker 1: studio that I'm sitting in right now, we're sitting side 372 00:20:10,040 --> 00:20:13,440 Speaker 1: by side with one of our acquisitions, which is Zodiac, 373 00:20:13,480 --> 00:20:17,280 Speaker 1: and we we acquired that company over a year ago 374 00:20:17,359 --> 00:20:22,320 Speaker 1: because they were experts in predicting consumer behavior and UH, 375 00:20:22,400 --> 00:20:26,080 Speaker 1: and they are able to help us retain and serve 376 00:20:26,520 --> 00:20:29,280 Speaker 1: our highest value members and actually help us predict who 377 00:20:29,280 --> 00:20:33,120 Speaker 1: our highest value consumers might be and and and so 378 00:20:33,200 --> 00:20:36,360 Speaker 1: that's a really important capability. And we're already seeing returns 379 00:20:36,359 --> 00:20:38,720 Speaker 1: on that when we launch our app in new markets 380 00:20:38,760 --> 00:20:41,359 Speaker 1: like Japan, and we'll see that in China at the 381 00:20:41,400 --> 00:20:44,639 Speaker 1: same time. And so sometimes you know, data does know 382 00:20:44,720 --> 00:20:46,800 Speaker 1: you better than you know yourself, but we really do 383 00:20:46,920 --> 00:20:50,040 Speaker 1: believe it's the art and science and and and we'll 384 00:20:50,119 --> 00:20:53,280 Speaker 1: always look to a balance there. You know, we want 385 00:20:53,320 --> 00:20:57,400 Speaker 1: to respect your preferences uh in your app experience. And 386 00:20:57,440 --> 00:21:00,440 Speaker 1: so you know, in one of the important is there 387 00:21:00,560 --> 00:21:02,320 Speaker 1: to know that you know, you have a family and 388 00:21:02,359 --> 00:21:05,240 Speaker 1: you shop for people other than yourself, and sometimes data 389 00:21:05,280 --> 00:21:08,440 Speaker 1: can't always see that as an example, So we we 390 00:21:08,440 --> 00:21:11,560 Speaker 1: we leverage both and we build algorithms on both, and 391 00:21:11,600 --> 00:21:13,840 Speaker 1: you'll see us getting better and better at that over time, 392 00:21:13,840 --> 00:21:17,440 Speaker 1: and you'll see that reflected in your member homepage. Heidi, 393 00:21:17,520 --> 00:21:20,040 Speaker 1: I want to make sure that we ask you. Last week, 394 00:21:20,320 --> 00:21:23,919 Speaker 1: Mary Kane, who was a former Nike Oregan Project runner, 395 00:21:24,359 --> 00:21:27,080 Speaker 1: published a very moving you know video op ed in 396 00:21:27,080 --> 00:21:31,040 Speaker 1: The New York Times detailing you know, her experience on 397 00:21:31,040 --> 00:21:33,600 Speaker 1: on a on a Nike sponsored running team, including what 398 00:21:33,720 --> 00:21:35,960 Speaker 1: she felt, you know, pressure to lose weight that that 399 00:21:36,080 --> 00:21:39,679 Speaker 1: led to suicidal thoughts and a number of injuries. You're 400 00:21:39,720 --> 00:21:42,159 Speaker 1: one of the highest ranking women at Nike. I'm curious 401 00:21:42,160 --> 00:21:44,439 Speaker 1: how you felt, you know, listening to and reading that 402 00:21:44,520 --> 00:21:48,960 Speaker 1: op ed. Yeah, you know, I I was on my 403 00:21:49,000 --> 00:21:53,040 Speaker 1: way home, um from Israel last week and uh, you know, 404 00:21:53,119 --> 00:21:55,679 Speaker 1: read the op ed as well as watched the video, 405 00:21:56,040 --> 00:21:58,359 Speaker 1: you know, real time like the rest of the world. 406 00:21:58,920 --> 00:22:03,720 Speaker 1: And you know, I've found it really disturbing. And I 407 00:22:04,600 --> 00:22:09,520 Speaker 1: as as do my peers and leaders at Nike. Uh, 408 00:22:09,560 --> 00:22:12,200 Speaker 1: you know, the Nike I work for, our you know, 409 00:22:12,320 --> 00:22:17,720 Speaker 1: our values around respect and empowerment and inclusion and and 410 00:22:17,720 --> 00:22:21,840 Speaker 1: and the allegations that we heard there, um were did 411 00:22:21,840 --> 00:22:24,600 Speaker 1: not reflect the values of you know, the company that 412 00:22:24,640 --> 00:22:28,880 Speaker 1: I believe in and work for. And um so we 413 00:22:28,960 --> 00:22:31,840 Speaker 1: are conducting an investigation. I feel really good about that. 414 00:22:32,240 --> 00:22:35,880 Speaker 1: I'm I'm glad that we move quickly on that and decisively. 415 00:22:36,359 --> 00:22:39,320 Speaker 1: And uh, you know something, you know you say, I'm 416 00:22:39,320 --> 00:22:42,240 Speaker 1: a senior leader at Nike. I come to work every 417 00:22:42,320 --> 00:22:44,720 Speaker 1: day and you know, one of my beliefs as you 418 00:22:44,800 --> 00:22:49,600 Speaker 1: listened to every voice, and you know, I've built a beautiful, 419 00:22:49,640 --> 00:22:53,200 Speaker 1: diverse team, and I work hard to listen to every voice. 420 00:22:53,200 --> 00:22:57,200 Speaker 1: And we will make sure as a Nike collective moving forward, 421 00:22:57,240 --> 00:22:59,560 Speaker 1: that we are always listening to the voice of the athlete. 422 00:22:59,600 --> 00:23:02,919 Speaker 1: As Phil has challenged us since day one, Nike gets 423 00:23:03,000 --> 00:23:05,960 Speaker 1: I think rightfully. So a lot of praise for its 424 00:23:06,000 --> 00:23:10,119 Speaker 1: marketing towards young women and female athletes. Um, Dream Crazier 425 00:23:10,160 --> 00:23:12,720 Speaker 1: campaign that came out earlier this year I thought was 426 00:23:12,800 --> 00:23:15,959 Speaker 1: very powerful. Um. Do you think that there's other areas 427 00:23:15,960 --> 00:23:18,159 Speaker 1: of the company beyond marketing that that Nike needs to 428 00:23:18,160 --> 00:23:21,480 Speaker 1: work on in light of you know, Mary King's op ed. 429 00:23:21,640 --> 00:23:23,760 Speaker 1: You know, there was some controversy earlier this year about 430 00:23:23,960 --> 00:23:26,680 Speaker 1: pregnant runners and how they were treated. What will being 431 00:23:26,680 --> 00:23:30,560 Speaker 1: professionals at Nike. Well, you know, I guess what I 432 00:23:30,560 --> 00:23:33,480 Speaker 1: would say is that, Um, you know, one of the 433 00:23:33,560 --> 00:23:37,440 Speaker 1: things that we're looking at it. Nike is just breaking 434 00:23:37,480 --> 00:23:41,000 Speaker 1: down the walls, UM in every department at Nike to 435 00:23:41,080 --> 00:23:45,080 Speaker 1: serve women better. UM. Whether that's how we communicate, whether 436 00:23:45,080 --> 00:23:47,120 Speaker 1: it's how we make products. I mean, if you look 437 00:23:47,160 --> 00:23:49,480 Speaker 1: at you know, I ran the women's business for a while, 438 00:23:49,600 --> 00:23:52,280 Speaker 1: and UM, we made a lot of progress. But you know, 439 00:23:52,359 --> 00:23:54,800 Speaker 1: if I were to be critical of that time, you know, 440 00:23:55,119 --> 00:23:57,280 Speaker 1: we we probably didn't break down the walls enough and 441 00:23:57,280 --> 00:24:01,000 Speaker 1: and and and pour enough innovation and UM connect the 442 00:24:01,040 --> 00:24:06,400 Speaker 1: teams and building products for women and UM. And then 443 00:24:06,520 --> 00:24:10,560 Speaker 1: I would say that continues through our entire value chain 444 00:24:10,600 --> 00:24:14,360 Speaker 1: of making sure we're engineering products for women, we are 445 00:24:14,400 --> 00:24:19,439 Speaker 1: communicating and connecting and and and listening to the voice 446 00:24:19,600 --> 00:24:22,119 Speaker 1: of our female athletes, as we have done with every 447 00:24:22,119 --> 00:24:25,680 Speaker 1: athlete in the past. So I have to say that, 448 00:24:26,200 --> 00:24:29,200 Speaker 1: you know, what what we see is a huge potential 449 00:24:29,359 --> 00:24:32,320 Speaker 1: is that entire value chain breaking down walls and bake 450 00:24:32,400 --> 00:24:34,520 Speaker 1: breaking down pair of times of how we've done it 451 00:24:34,560 --> 00:24:37,879 Speaker 1: in the past. And and you know there's some muscle 452 00:24:37,880 --> 00:24:40,960 Speaker 1: memory there that we have to challenge. But I'm super 453 00:24:41,000 --> 00:24:45,719 Speaker 1: confident in um in and optimistic about our future. And 454 00:24:45,720 --> 00:24:48,159 Speaker 1: and when when you guys, you know, even from a 455 00:24:48,280 --> 00:24:51,159 Speaker 1: digital perspective, I could be critical that I think some 456 00:24:51,240 --> 00:24:53,320 Speaker 1: of our journeys can be better for her. Her shopping 457 00:24:53,359 --> 00:24:57,359 Speaker 1: behaviors different than his, and we're learning now that that 458 00:24:57,600 --> 00:25:00,880 Speaker 1: actually through data that you know, she spends a little 459 00:25:00,880 --> 00:25:03,399 Speaker 1: more time with us, she doesn't want to buy, you know, 460 00:25:03,440 --> 00:25:05,920 Speaker 1: the first time she sees the product, her shopping journey 461 00:25:06,240 --> 00:25:09,040 Speaker 1: might be seven days long before she makes a decision, 462 00:25:09,040 --> 00:25:11,600 Speaker 1: and she wants more information and a lot more video. 463 00:25:12,160 --> 00:25:15,640 Speaker 1: So so I think every single function from an enterprise 464 00:25:15,680 --> 00:25:17,520 Speaker 1: at Nike needs to take a hard look on how 465 00:25:17,520 --> 00:25:19,479 Speaker 1: to serve her better. And we're all committed to do 466 00:25:19,520 --> 00:25:22,679 Speaker 1: that doing that and we see it as an amazing 467 00:25:22,720 --> 00:25:25,359 Speaker 1: as the way we serve female athletes, but we also 468 00:25:25,400 --> 00:25:28,400 Speaker 1: see as an epic growth opportunity for Nike. I would 469 00:25:28,440 --> 00:25:31,000 Speaker 1: like to ask something in general about breaking down walls, 470 00:25:31,080 --> 00:25:35,199 Speaker 1: because you are in a very high position as a 471 00:25:35,200 --> 00:25:38,800 Speaker 1: woman in Nike, but in the corporate world, there's a 472 00:25:38,840 --> 00:25:42,240 Speaker 1: long way to go. Can you comment on that and 473 00:25:42,760 --> 00:25:45,080 Speaker 1: what more needs to be done, not just in America 474 00:25:45,119 --> 00:25:49,480 Speaker 1: but around the world. Yeah, well, you know, I'm fortunate 475 00:25:49,600 --> 00:25:53,080 Speaker 1: to um, you know, to sit with a lot of 476 00:25:53,200 --> 00:25:56,840 Speaker 1: female leaders at Nike. UM and and so I haven't 477 00:25:57,000 --> 00:26:00,560 Speaker 1: broken down walls alone. And and there's some amazing women. 478 00:26:00,560 --> 00:26:04,200 Speaker 1: If you just look at Nike UM, we have UM 479 00:26:04,200 --> 00:26:07,000 Speaker 1: the person who is running you talked about influencer, all 480 00:26:07,000 --> 00:26:09,560 Speaker 1: of our influencer and marketing as a woman. Our head 481 00:26:09,600 --> 00:26:13,160 Speaker 1: of categories UM is a woman. Our head of our 482 00:26:13,320 --> 00:26:16,280 Speaker 1: innovation accelerator is a woman. I could go on, you 483 00:26:16,320 --> 00:26:18,800 Speaker 1: get the points. So I think there's some there's a 484 00:26:19,520 --> 00:26:22,119 Speaker 1: host of they're a woman running women's and a woman. 485 00:26:23,200 --> 00:26:26,720 Speaker 1: But so so you know, I think I think Nike 486 00:26:27,280 --> 00:26:32,080 Speaker 1: is is really opening up UM our c suite to 487 00:26:32,800 --> 00:26:35,920 Speaker 1: a powerful group of women that are depth making Nike 488 00:26:36,040 --> 00:26:37,840 Speaker 1: think differently. And I think you're going to see that 489 00:26:37,960 --> 00:26:41,280 Speaker 1: in our outcomes. I'm also on the board of Spotify, 490 00:26:41,640 --> 00:26:43,960 Speaker 1: and and if you look at the composition of the 491 00:26:43,960 --> 00:26:47,920 Speaker 1: board of Spotify, you'll see UM many more women UM 492 00:26:48,080 --> 00:26:51,399 Speaker 1: on the board and a lot of boards investing UM 493 00:26:51,480 --> 00:26:55,000 Speaker 1: in in kind of the balance and representation there and 494 00:26:55,000 --> 00:26:59,200 Speaker 1: and and so you know, I do see it as 495 00:26:59,760 --> 00:27:02,560 Speaker 1: UM a really important role that I play at Nike 496 00:27:02,640 --> 00:27:06,919 Speaker 1: and boards. I'm on to make sure that that we 497 00:27:06,960 --> 00:27:10,000 Speaker 1: don't just have representation for the sake of representation. But 498 00:27:10,160 --> 00:27:14,080 Speaker 1: I can already start feeling, Um, let's just talk about Nike, 499 00:27:14,200 --> 00:27:17,879 Speaker 1: that we're making a better Nike because these voices are included. 500 00:27:18,040 --> 00:27:21,919 Speaker 1: And so I look at, you know, my role, I 501 00:27:21,960 --> 00:27:27,520 Speaker 1: guess see we're closer in our our demographic, but um, 502 00:27:27,720 --> 00:27:29,960 Speaker 1: I look at my role is really a handshake of 503 00:27:30,000 --> 00:27:32,560 Speaker 1: the path to the future and making sure that we're 504 00:27:32,760 --> 00:27:36,600 Speaker 1: hiring the best talent, that that talent is diverse. And um, 505 00:27:36,640 --> 00:27:39,239 Speaker 1: not that I'm going anywhere, but that that you know, 506 00:27:39,840 --> 00:27:46,159 Speaker 1: you and mild twelve of the marathon bars crossed, but 507 00:27:46,280 --> 00:27:49,439 Speaker 1: you should see the amazing team we're building. And and I, 508 00:27:49,600 --> 00:27:52,320 Speaker 1: you know, I was just in Israel last week with 509 00:27:52,440 --> 00:27:56,639 Speaker 1: our global team, in our Europe team and meeting with 510 00:27:56,760 --> 00:27:59,479 Speaker 1: some tex startups there and at one point that we 511 00:27:59,480 --> 00:28:02,760 Speaker 1: were talking about diversity, and I just stood up and 512 00:28:02,800 --> 00:28:05,399 Speaker 1: I looked at the room. Um, and and here we 513 00:28:05,480 --> 00:28:10,199 Speaker 1: are in the most tax post focused, most future focused 514 00:28:10,240 --> 00:28:13,040 Speaker 1: part of Nike. And I looked at that room and 515 00:28:13,160 --> 00:28:16,399 Speaker 1: it was filled with diversity and filled with powerful women. 516 00:28:16,480 --> 00:28:19,080 Speaker 1: So we're we've got you know, you know, we say 517 00:28:19,119 --> 00:28:22,280 Speaker 1: at Nike there's no finish line, but um, but I 518 00:28:22,760 --> 00:28:26,359 Speaker 1: I hope you start to feel in our consumer experiences 519 00:28:26,400 --> 00:28:29,800 Speaker 1: and our voice. Um, how I feel that women are 520 00:28:29,800 --> 00:28:32,639 Speaker 1: actually making a difference at Nike and that team. Heidi 521 00:28:32,680 --> 00:28:34,640 Speaker 1: has a new leader before we let you go, uh, 522 00:28:34,920 --> 00:28:38,280 Speaker 1: new CEO, John Donahoe taking over in January. I think 523 00:28:38,280 --> 00:28:40,960 Speaker 1: surprised some people that maybe don't understand the full extent 524 00:28:41,000 --> 00:28:43,680 Speaker 1: of Nike's business that he came from the tech sector. 525 00:28:43,760 --> 00:28:47,760 Speaker 1: You know, he's a former eBay CEO, former Service Now CEO. 526 00:28:47,880 --> 00:28:51,120 Speaker 1: What does Nike get in in hiring a high powered 527 00:28:51,120 --> 00:28:55,360 Speaker 1: tech executive to be the next top dog at the company. Yeah, well, 528 00:28:55,440 --> 00:28:57,800 Speaker 1: let's first talk about what we get with keeping Mark 529 00:28:58,200 --> 00:29:01,120 Speaker 1: um as our executive chair in the deal. I actually 530 00:29:01,120 --> 00:29:04,920 Speaker 1: think it's an incredible um and powerful transition. I don't 531 00:29:04,920 --> 00:29:08,280 Speaker 1: know that it could be more elegant to be able 532 00:29:08,320 --> 00:29:11,120 Speaker 1: to have Mark still a part of the company, a 533 00:29:11,200 --> 00:29:14,800 Speaker 1: part of steering us to the future in his role, 534 00:29:14,880 --> 00:29:17,520 Speaker 1: we just celebrated his fortieth anniversary, and of course he 535 00:29:17,640 --> 00:29:21,200 Speaker 1: was CEO for fourteen years, so uh, you know, I 536 00:29:21,760 --> 00:29:25,240 Speaker 1: I think that's an important um part of the transition 537 00:29:25,280 --> 00:29:28,080 Speaker 1: as well. And then and then for John, you know, 538 00:29:28,320 --> 00:29:31,959 Speaker 1: obviously in my shoes I'm a little biased, but the 539 00:29:32,000 --> 00:29:34,800 Speaker 1: fact that you know, we've we've been working and it's 540 00:29:34,800 --> 00:29:37,040 Speaker 1: been a heavy lift and we still have a lift 541 00:29:37,040 --> 00:29:40,120 Speaker 1: to go in being on the journey of digital transformation. 542 00:29:40,200 --> 00:29:45,480 Speaker 1: But to hire a proven tech leader, UH who has 543 00:29:45,560 --> 00:29:48,320 Speaker 1: been with us on this journey and actually knows exactly 544 00:29:48,360 --> 00:29:51,520 Speaker 1: where we are talking, what mile marker we're on and 545 00:29:51,680 --> 00:29:55,440 Speaker 1: UM and and yet to be able to be shoulder 546 00:29:55,440 --> 00:29:59,040 Speaker 1: to shoulder with us as we make the investments and 547 00:29:59,240 --> 00:30:03,320 Speaker 1: UM and we and I do believe he will support 548 00:30:03,400 --> 00:30:06,080 Speaker 1: us in in the level of urgency we need to 549 00:30:06,120 --> 00:30:09,480 Speaker 1: have because there is a speed of consumer that UM 550 00:30:09,640 --> 00:30:12,760 Speaker 1: that that should be setting the pace and UH and 551 00:30:13,440 --> 00:30:17,440 Speaker 1: UM and I think I think John sees that and 552 00:30:17,440 --> 00:30:20,400 Speaker 1: and he's you know, honestly, we've had tons of sessions 553 00:30:20,440 --> 00:30:23,160 Speaker 1: as a as a tech team with Don as a 554 00:30:23,200 --> 00:30:25,520 Speaker 1: board member, and you know, he loves to roll up 555 00:30:25,520 --> 00:30:28,960 Speaker 1: his leaves. He loves to um, you know, engage in 556 00:30:28,960 --> 00:30:31,479 Speaker 1: our experiences. So I think he'll also be a roll 557 00:30:31,560 --> 00:30:34,880 Speaker 1: up as leaves kind of guy. And and and I 558 00:30:34,960 --> 00:30:36,400 Speaker 1: guess the other thing I would just say is I've 559 00:30:36,400 --> 00:30:39,280 Speaker 1: had a couple of sessions with him, UM since the announcement, 560 00:30:39,600 --> 00:30:43,400 Speaker 1: and you know, he he has a huge reverence to 561 00:30:43,440 --> 00:30:46,800 Speaker 1: our playbook that has made us who we are as 562 00:30:46,880 --> 00:30:49,800 Speaker 1: well as he knows the playbook of the future. So 563 00:30:49,920 --> 00:30:52,760 Speaker 1: that's a that's a great combo. And he's planning on 564 00:30:53,200 --> 00:30:56,480 Speaker 1: um spending as much time with our teams and product 565 00:30:56,600 --> 00:31:00,360 Speaker 1: and innovation and supply chain as he is with with us, 566 00:31:00,400 --> 00:31:04,040 Speaker 1: and he might just help us, UM, you know, build 567 00:31:04,080 --> 00:31:08,800 Speaker 1: that end to end transformation even faster. He knows the 568 00:31:08,840 --> 00:31:14,840 Speaker 1: playbook of the future. That's a lot of pressure right there. 569 00:31:13,200 --> 00:31:21,680 Speaker 1: He knows the delivery share A president of Nike Direct, 570 00:31:21,800 --> 00:31:25,760 Speaker 1: you were so kind to join us. Thank you so much. Hey, 571 00:31:25,800 --> 00:31:27,720 Speaker 1: thank you guys so much. Hope to see you. I 572 00:31:27,920 --> 00:31:33,280 Speaker 1: r L sometime soon. Yeah, next year. Yeah, I'm gonna 573 00:31:33,320 --> 00:31:35,719 Speaker 1: I'm gonna run the New York Marathon next year. So 574 00:31:35,760 --> 00:31:38,040 Speaker 1: I got it, are you really? Yeah? I gotta First 575 00:31:38,040 --> 00:31:39,600 Speaker 1: of I gotta lose some weight, so I gotta go 576 00:31:39,640 --> 00:31:41,360 Speaker 1: through all. I want to train it and do it 577 00:31:41,480 --> 00:31:44,560 Speaker 1: right and do everything and and I've got a little 578 00:31:44,560 --> 00:31:46,400 Speaker 1: ways to go. But I made a promise that I 579 00:31:46,440 --> 00:31:50,080 Speaker 1: wasn't going to start the diet until after Thanksgiving? So 580 00:31:50,520 --> 00:31:54,760 Speaker 1: can we train you? Can we be your partner? Yeah? Yeah, 581 00:31:54,920 --> 00:31:58,080 Speaker 1: you know pay Yeah, I want one of those fancy shoes. 582 00:31:58,120 --> 00:32:01,240 Speaker 1: That we I was just talking about the moment to 583 00:32:01,280 --> 00:32:14,560 Speaker 1: answer for me, No, you may not change whatever. Thank 584 00:32:14,640 --> 00:32:19,160 Speaker 1: you again, to appreciate, thank you so much. You know, Evan, 585 00:32:19,280 --> 00:32:23,040 Speaker 1: I am thoroughly impressed with Heidi. She is one of 586 00:32:23,080 --> 00:32:26,360 Speaker 1: the many women out there breaking that glass ceiling in 587 00:32:26,400 --> 00:32:29,200 Speaker 1: the corporate world that needs to be broken. And one 588 00:32:29,280 --> 00:32:34,320 Speaker 1: day we will finally realize that men and women should 589 00:32:34,360 --> 00:32:39,440 Speaker 1: make the entire exact salary for the exact job. Yes, 590 00:32:39,640 --> 00:32:43,920 Speaker 1: I'm on a soapbox, but you know, enough is enough. 591 00:32:44,160 --> 00:32:46,880 Speaker 1: I want to see Heidi get in there and and 592 00:32:46,960 --> 00:32:48,640 Speaker 1: help do that. Yeah, I agree with you. And and 593 00:32:48,680 --> 00:32:51,320 Speaker 1: it's clear that you know, despite you know, some some 594 00:32:51,360 --> 00:32:54,160 Speaker 1: negative press that Nike is getting, Heidi clearly believes very 595 00:32:54,160 --> 00:32:56,480 Speaker 1: strongly in what Nike. He is doing in the leadership 596 00:32:56,480 --> 00:32:59,040 Speaker 1: team around it, and it's approached to know all different 597 00:32:59,040 --> 00:33:02,120 Speaker 1: types of diversity, UH might take away. You know, I 598 00:33:02,240 --> 00:33:03,920 Speaker 1: love it when we have guests that come on and 599 00:33:03,960 --> 00:33:06,880 Speaker 1: give kind of very specific examples of the kind of 600 00:33:06,880 --> 00:33:08,280 Speaker 1: work that they're doing. I think it gives a very 601 00:33:08,320 --> 00:33:11,480 Speaker 1: interesting insight into, you know, the technology that Nike is using. 602 00:33:11,520 --> 00:33:14,360 Speaker 1: For example, you know, she mentioned the Nike Running app right, 603 00:33:14,400 --> 00:33:16,480 Speaker 1: which which Nike can look at kind of aggregate the 604 00:33:16,560 --> 00:33:19,240 Speaker 1: data and see trends across running. And one of the 605 00:33:19,280 --> 00:33:21,320 Speaker 1: things they learned, as you heard her say, people were 606 00:33:21,400 --> 00:33:23,040 Speaker 1: running at night more than they thought they would and 607 00:33:23,080 --> 00:33:25,479 Speaker 1: someone and Nike said, you know, there's an opportunity for us. 608 00:33:25,800 --> 00:33:29,600 Speaker 1: We should be selling better reflective gear, better nighttime running equipment. 609 00:33:29,800 --> 00:33:31,640 Speaker 1: And clearly they did that right. So so that is 610 00:33:31,680 --> 00:33:34,280 Speaker 1: a perfect kind of concrete example of the way in 611 00:33:34,320 --> 00:33:37,560 Speaker 1: which Nike looks at its entire ecosystem of data, which 612 00:33:37,600 --> 00:33:39,600 Speaker 1: is much more than you know, the shoes that you buy, 613 00:33:39,880 --> 00:33:41,960 Speaker 1: how big your shorts are, what type of shirts that 614 00:33:42,000 --> 00:33:45,000 Speaker 1: you like. It includes things like how you're training when 615 00:33:45,000 --> 00:33:47,440 Speaker 1: you're running, how fast are you things like that, and 616 00:33:47,440 --> 00:33:50,680 Speaker 1: then tailoring their product to meet the demands that they're seeing. 617 00:33:53,960 --> 00:33:55,880 Speaker 1: It feels better to be number one than number five. 618 00:33:55,920 --> 00:33:57,520 Speaker 1: I'll wear a number because of Mike. We have a 619 00:33:57,600 --> 00:33:59,520 Speaker 1: chance to go for three in a row. Numbers are 620 00:33:59,520 --> 00:34:01,560 Speaker 1: a good time. When I first started wearing the number, 621 00:34:01,680 --> 00:34:05,200 Speaker 1: I would just happy. In Floomberg Business of Sports, the 622 00:34:05,320 --> 00:34:07,480 Speaker 1: number of the week. Time. Now for the number of 623 00:34:07,560 --> 00:34:12,360 Speaker 1: the week, here I go. The number is one hundred. 624 00:34:13,080 --> 00:34:16,600 Speaker 1: The number is one hundred. I will give you a hint. 625 00:34:16,640 --> 00:34:20,040 Speaker 1: We were just talking about something a second ago that 626 00:34:20,160 --> 00:34:24,440 Speaker 1: you just said. It's something that's going to affect me 627 00:34:25,200 --> 00:34:29,120 Speaker 1: trying to do next year's New York marathon. This is 628 00:34:29,360 --> 00:34:34,520 Speaker 1: the amount of steps per mile that you're planning on taking, 629 00:34:35,440 --> 00:34:39,040 Speaker 1: no um, the amount of minutes it's going to take 630 00:34:39,080 --> 00:34:46,839 Speaker 1: you to finish half of it, or or or look 631 00:34:46,880 --> 00:34:50,160 Speaker 1: at my body and and then one more time, are 632 00:34:50,200 --> 00:34:52,440 Speaker 1: you going to lose a hundred pounds that I have to. 633 00:34:53,000 --> 00:34:55,120 Speaker 1: I have to, and I'm going to admit it to 634 00:34:55,200 --> 00:34:57,520 Speaker 1: everybody out there. This is our best number of the 635 00:34:57,520 --> 00:34:58,960 Speaker 1: week I think we've ever done on the show. I 636 00:34:59,520 --> 00:35:02,320 Speaker 1: have to to it. It is right now, I weigh 637 00:35:02,600 --> 00:35:06,239 Speaker 1: two hundred eighty eight pounds. Okay, so I want to 638 00:35:06,239 --> 00:35:09,560 Speaker 1: get down to one more power to you to to 639 00:35:09,640 --> 00:35:11,640 Speaker 1: get ready for the marathon because I have to. I mean, 640 00:35:11,680 --> 00:35:14,520 Speaker 1: it's you know, it's and I admit I have you know, 641 00:35:14,880 --> 00:35:17,960 Speaker 1: artificial hips and you know, so I have to relieve 642 00:35:18,000 --> 00:35:20,160 Speaker 1: all that pressure with the knees and stuff and everything. 643 00:35:20,480 --> 00:35:23,320 Speaker 1: So I've made the promise after Thanksgiving that's when it starts. 644 00:35:23,360 --> 00:35:25,279 Speaker 1: By the way, I have tremendous respect that you are 645 00:35:25,400 --> 00:35:28,520 Speaker 1: one doing this and to being so public and open 646 00:35:28,560 --> 00:35:32,560 Speaker 1: about it on a weekly radio show and podcast because 647 00:35:32,600 --> 00:35:35,520 Speaker 1: there's accountability there and I respect that. You're the man 648 00:35:35,960 --> 00:35:38,880 Speaker 1: of luck. I'm coming to you for a lot of advice. 649 00:35:39,800 --> 00:35:42,120 Speaker 1: You've been listening to Bloomberg Business of Sports. We're here 650 00:35:42,160 --> 00:35:44,440 Speaker 1: each and every week at the same time, plus online 651 00:35:44,440 --> 00:35:47,480 Speaker 1: wherever you get your podcast. You can catch those Mondays, 652 00:35:47,520 --> 00:35:50,480 Speaker 1: Wednesdays and Thursdays. I'm Michael bar on Twitter at Big 653 00:35:50,560 --> 00:35:53,800 Speaker 1: Bar Sports. I'm Evan Novie Williams at Novie Underscore Williams. 654 00:35:53,840 --> 00:35:55,480 Speaker 1: Thanks so much for joining us. Please tune in next 655 00:35:55,520 --> 00:35:58,640 Speaker 1: week when we talk to the president of Ticketmaster, Jared Smith. 656 00:35:58,719 --> 00:36:01,360 Speaker 1: So much going on right now in ticketing, the resale world. 657 00:36:01,800 --> 00:36:03,520 Speaker 1: It's going to break it down for us. You're listening 658 00:36:03,560 --> 00:36:06,840 Speaker 1: to Bloomberg Business of Sports from Bloomberg Radio around the world.