Jinx wrote:
>
> I'd cite the well-worn
> examples of Nike, who it's said pay Tiger Woods (an individual)
> more than their entire factory work force (many thousands)
> combined,
>

Nike was first targeted when Michael Jordan received a $20M
endorsement deal.

It is useful to judge the Nike's of the world in the local
terms. As third world countries industrialize the first industrial
capitalization is invested in industries that require little
formal skills and offer employment for many that are otherwise
face starvation and unbelievable poverty.  "Sweat shops" are
are the first of many steps that start the process of improved
living standards.

It interesting that Nike moved from Korea to Indonesia.  This
move can be looked at as a success story, Korea has now moved
to a different state of industrialization (and debt). It's people
have a better education and standard of living than they had
a generation ago. The failure of companies to invest at all in
third world countries has much more serious consequences in
human terms

At the time of Michael Jordan's endorsement deal Nike had a
profit margin of about 5.5%. (SEC filings)

Michael Jordan's $20 million is an interesting number to be
looked at closely.  Assume that Nike would profit from the
deal.  It would take $238Million in increased sales to
for the deal with Michael Jordan to break even.  That number
would translate into about 4000 new jobs world wide the bulk
of those jobs being in third world countries.

This deal is the classic definition of profit where everyone
benefited.  (I would not mind being Michael Jordan though)

Assuming that advertising works, one percent of a advertising
budget of $280 Million (1995) (Including the $20M paid to
Michael Jordan) diverted to salaries in would drop sales
of Nike products $470Million dollars and leave about
8000 people world wide without jobs.


My morning rant. I don't own Nike stock. After running the
gauntlet of protesters one time more than enough a couple
years ago I decided to find out if they knew what they
were talking about.

Walter..

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