Armstrong Cedes to Nay-Sayers, May Benefit Nike (NKE)
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So, what does it mean for Nike (NYSE: NKE) then?
Friday, cycling legend Lance Armstrong submitted a resignation letter of sorts. Following years of speculation, inquiries, testing, controversy, and more surrounding the alleged use of performance-enhancing drugs, Armstrong finally caved and called it quits with all the run-around and refused to fight any allegations against him.
Armstrong is largely known for winning the Tour de France -- arguably one of the more grueling sporting events on earth -- a mind-shattering seven times. There have been other multiple winners, including Eddie Merckx, Jacques Anquetil, Greg LeMond, all at five, with only Miguel Indurain able to string his five wins together in consecutive fashion (1991 - 95).
The submission means Armstrong has forfeited all of his wins and is banned for life from Olympic and other elite-level events. Given that Armstrong is now the ripe old age of 40, it seems unlikely that he'll by vying for a gold medal anytime soon.
More notably, the news might be a boon for Nike. Since Armstrong was riding for the USPS en route to his first TdF win in 1998, Nike has been the sponsor of his team's jersey. We're not clear on the sponsorship details, but all the photos of Armstrong circling around will be a relatively great promotion for the brand.
(Side note: Nike should issue "limited releases" of all the yellow jersey's Armstrong wore in his seven victories. It would be marketing genius while showing that the company still supports a champ. After all, Armstrong hasn't been officially accused of anything, right?)
Nike shares are up 0.8 percent on the session.
Friday, cycling legend Lance Armstrong submitted a resignation letter of sorts. Following years of speculation, inquiries, testing, controversy, and more surrounding the alleged use of performance-enhancing drugs, Armstrong finally caved and called it quits with all the run-around and refused to fight any allegations against him.
Armstrong is largely known for winning the Tour de France -- arguably one of the more grueling sporting events on earth -- a mind-shattering seven times. There have been other multiple winners, including Eddie Merckx, Jacques Anquetil, Greg LeMond, all at five, with only Miguel Indurain able to string his five wins together in consecutive fashion (1991 - 95).
The submission means Armstrong has forfeited all of his wins and is banned for life from Olympic and other elite-level events. Given that Armstrong is now the ripe old age of 40, it seems unlikely that he'll by vying for a gold medal anytime soon.
More notably, the news might be a boon for Nike. Since Armstrong was riding for the USPS en route to his first TdF win in 1998, Nike has been the sponsor of his team's jersey. We're not clear on the sponsorship details, but all the photos of Armstrong circling around will be a relatively great promotion for the brand.
(Side note: Nike should issue "limited releases" of all the yellow jersey's Armstrong wore in his seven victories. It would be marketing genius while showing that the company still supports a champ. After all, Armstrong hasn't been officially accused of anything, right?)
Nike shares are up 0.8 percent on the session.
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