Some times board rats wonder how Andrew Wiggins can be rumored to be awaiting some kind of mega endorsement deal.
Think about this number: 300,000,000.
That is the estimated number of human beings that play basketball on planet earth presently, according to the ever suspect Wikipedia.
Let's do the numbers, as market researchers like to say.
Primary Market: 300,000,000 hoopahs
Secondary Market: 900,000,000 (Ex Hoopahs and Hoopah wannabes = 3 x hoopahs)
Tertiary Market: 100,000,000 (wild guess)
Total Market 1, 300,000,000 potential buyers
1 pair tennies $100
1 clothes ensemble $100
Total sales/buyer/yr $200
Potential Sales/yr $260,000,000,000
adidas market penetration 10%
Effective revenues/yr $26,000,000,000
Now realize that the above sum estimates only the hoopah, ex hoopah, hoopah wannabe and related tertirary miscellaneous hoopah markets and does so with a very conservative 10% market penetration.
Realize also that there is a rather large, perhaps quite a bit larger non-hoopah market of persons that just buy tennis shoes because they feel better than other shoes. But let's leave these aside for the pros to worry about.
Now, consider if Adidas were to double its market penetration because they signed a phenom product endorser, say, oh, I dunno, say like, Andrew Wiggins. I know, doubling is a reach, but just to keep the calculations simple, let's say he could grow effective revenues that amount in part because of his charisma and in part because every year another couple hundred millions of persons reach the standard of living that allows them to buy shoes and a sports apparel ensemble.
Effective revenues/yr: $52,000,000,000
Investment bankers like to take a 2% fee for putting large deals together. $52B still qualifies as a large deal, I reckon, so let's say a product endorser that can deliver the goods and isn't any more risky than an investment banker and so "only" deserves a paltry 2% fee also, but since the shoe endorser makes it rain every year, let's say he gets it every year.
At that rate, the endorser could cut out about $1B/yr and still leave plenty of fat on the hog.
But of course, with endorsers, we are talking 'bout money, not talkin' 'bout wealth, as Chris Rock used to say.
Well, do you think Andrew would be worth the chump change of $100,000,000, or so, to up that market penetration for Adidas to 20%?
Andrew would be a bloody steal at that price, even just considering the hoopah market, even every flipping year!
And don't even get me going on the non-hoopah market he might be able to cross over into with the right kind of marketing. :-)
Still, talkin' 'bout money, not talkin' 'bout wealth.
(Note: just haven' some fun here on a kitchen napkin. Nothing binding here. My numbers could be way off both in the estimates and the calculations. God only knows what real numbers might approximate. But there are some big numbers floating around with an installed user base of hoopahs at anywhere near 300M I reckon.)