FEET — 27 November 2013
Adidas Can Reduce Money Owed to Derrick Rose if Injuries Hurt Shoe Sales

Derrick Rose’s latest knee injury has far reaching effects that surpass just another unfulfilled season for the Chicago Bulls. His departure hurts the pockets of many of eat off his back. Namely: adidas.

A few years ago, adidas did what they had to and gave Rose $200+ million dollars. It was a wise move on their part, as they couldn’t afford to lose him to industry-leading Nike. But with  Rose’s injury, how will this impact the sale of his latest signature shoe: D Rose 4? And are they seeing a return on their investment?

According to Darren Rovell of ESPN, adidas may be able to recoup some of the money on Rose’s shoe contract because of this injury. The 10-year contract can’t be undone, but apparently there’s this language in there around recovery.

Sources say the adidas deal with Rose can’t be undone, but the company can start to recover money once Rose misses two-thirds of any given season. If the company can prove that shoe sales gave been hurt, it can deduct some of the money owed to Rose. It’s uncertain what happened last year when Rose missed the season following ACL surgery.

Adidas might need some of that extra cash because it can’t possibly leave the game. Sure, soccer is more important to its overall portfolio, but as the official apparel licensee of the NBA, adidas has to have a presence in the signature shoe game.


At this rate, Rose may only see a fraction of the total contract value.

Adidas only has about 5% of the basketball shoe market, so this obviously doesn’t help. They are reportedly setting their sights on Andrew Wiggins, which would be huge. I’m not sure they need to do another $200+  million deal, though.

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Kevin Burke

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