Negotiating with Nike: Allyson Felix Encounters the "Kiss of Death" (A)

This case examines Olympic champion Allyson Felix&apos;s high-stakes negotiation with Nike, Inc. (Nike), over maternity protections for sponsored athletes, highlighting broader issues of gender equity in professional sports. Felix&apos;s contract with Nike expired at the end of 2017, and during renewal negotiations, she became increasingly frustrated that Nike offered no pregnancy or postpartum protections. In elite track and field, pregnancy had been described as "the kiss of death," as athletes were often forced to pause sponsorship contracts—and their income—during pregnancy and the postpartum period. As a result, when Felix had gotten pregnant, she had chosen not to disclose her condition to Nike.In 2019, fellow track stars and mothers Alysia Montaño and Kara Goucher publicly shared their pregnancy-related sponsorship struggles, triggering backlash against Nike. Although the company pledged to “do more” and had publicly positioned itself as a champion for female athletes, Felix viewed its response as vague and insufficient.Felix sought to include explicit maternity protections in her contract, aiming not only to secure her own future but also to set a precedent that would help other athletes. Nike&apos;s most recent offer had ignored her request for these protections, however. Should Felix continue negotiating with Nike despite the absence of clear protections? Should she seek sponsorship elsewhere? Or should she follow Montaño and Goucher in going public with her story?Together with its follow-up B case, “Negotiating with Nike: Allyson Felix Encounters the ‘Kiss of Death&apos; (B)” (UVA-OB-1458), this case explores how athlete activism, brand positioning, and values-driven partnerships can drive change, reshape industry standards, and influence both personal and corporate brands.<p>Excerpt</p><p>Negotiating with Nike: Allyson Felix Encounters the “Kiss of Death” (A)</p><p>In May 2019, Allyson Felix, one of the most decorated female track and field athletes of all time, was at a crossroads. Her sponsorship contract with Nike, Inc. (Nike), had expired in December 2017, and she and her agent, Wes—who was also her brother—were still negotiating terms of renewal. Felix had recently given birth to daughter Camryn in November 2018. Nike, like many brands, did not have maternity or postpartum recovery protections guaranteed in its sponsorship contracts. Pregnant and postpartum athletes usually paused their contracts—and their earnings. Felix, a world leader in her sport, had been offered more favorable terms for her own pregnancy. But to what extent should she push for systemic change for all athletes, even those with fewer medals?</p><p>Track and Field Compensation</p><p>Professional track and field was a well-established sport with records of Olympic competition dating back to 776 BCE in Greece. Despite its historical imprint, its popularity among high school students, and its participatory nature among adults, track and field was one of the less popular professional sports in the United States. It was ranked eighth in 2019, according to a Nielsen study of the most-followed sports. Thirty-seven percent of slightly more than 1,000 respondents indicated that they were interested in following it.</p><p>. . .</p>