Yahoo Finance Why The College Hoops Scandal Could Affect Sportswear Stocks
Welcome to the third episode of Full-Court Finance, the new podcast from Zacks Investment Research focused on the intersection of sports, business, and the stock market. This week, we tackle the ongoing FBI investigation into the world of big-time college basketball and the role sportswear companies such as Adidas ADDYY and Nike NKE play.
Recently, the FBI and the U.S. Attorney for the Southern District of New York helped expose the underbelly of college basketball, illuminating a world of bribes and massive payments involving players, families, financial advisors, coaches, and sportswear powers.
Schools such as Arizona, Louisville, and USC were caught up in the investigation, while an Adidas executive was implicated for paying a high school player’s family $100,000 to attend a university that the German sportswear company sponsors.
On this episode, we look into how and why sportswear companies—Adidas, Nike, and Under Armour UAA—are so heavily involved in major college sports, specifically basketball. On top of that, we delve into what implications this serious investigation will have on these companies and try to understand if they will continue to invest in college sports going forward.
With long-term agreements like UCLA’s 15-year, $280 million deal with Under Armour changing the landscape of collegiate athletics, this podcast is set to help investors understand what they need to know about sportswear companies and their involvement in “amateur” sports.
If you have any questions about the third episode of Full-Court Finance please feel free to shoot us an email over at podcast@zacks.com. Please also make sure to check out all of our other podcasts at zacks.com/podcast and remember to subscribe and leave a rating in iTunes.
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