NIKE, Inc. Reports Fiscal 2025 Fourth Quarter and Full Year Results
Full year revenues were $46.3 billion, down 10 percent on a reported basis compared to the prior year and down 9 percent on a currency-neutral basis*
Fourth quarter revenues were $11.1 billion, down 12 percent on a reported basis and down 11 percent on a currency-neutral basis
NIKE Direct revenues for the fourth quarter were $4.4 billion, down 14 percent on a reported and currency-neutral basis
Wholesale revenues for the fourth quarter were $6.4 billion, down 9 percent on a reported and currency-neutral basis
Gross margin for the fourth quarter decreased 440 basis points to 40.3 percent
Diluted earnings per share was $0.14 for the fourth quarter
"While our financial results are in-line with our expectations, they are not where we want them to be. Moving forward, we expect our business to improve as a result of the progress we're making through our Win Now actions," said Elliott Hill, President & CEO, NIKE, Inc. "As we enter a new fiscal year, we are turning the page and the next step is aligning our teams to lead with sport through what we are calling the sport offense. This will accelerate our Win Now actions to reposition our business for future growth."
The sport offense realignment will focus on driving distinction within key sports, building a complete product portfolio, creating stories to inspire and connect with consumers, and elevating and growing the entire marketplace.
"The fourth quarter reflected the largest financial impact from our Win Now actions, and we expect the headwinds to moderate from here," said Matthew Friend, Executive Vice President & Chief Financial Officer, NIKE, Inc. "I am confident in our ability to navigate through this current dynamic and uncertain environment by focusing on what we can control and executing our Win Now actions."
Fourth Quarter Income Statement Review
Revenues for NIKE, Inc. were $11.1 billion, down 12 percent on a reported basis and down 11 percent on a currency-neutral basis.
Revenues for the NIKE Brand were $10.8 billion, down 11 percent on a reported and currency-neutral basis, driven by declines across all geographies.
NIKE Direct revenues were $4.4 billion, down 14 percent on a reported and currency-neutral basis, due to a 26 percent decrease in NIKE Brand Digital, partially offset by a 2 percent increase in NIKE-owned stores.
Wholesale revenues for the fourth quarter were $6.4 billion, down 9 percent on a reported and currency-neutral basis.
Revenues for Converse were $357 million, down 26 percent on a reported and currency-neutral basis, due to declines across all territories.
Gross margin decreased 440 basis points to 40.3 percent, primarily due to higher discounts and changes in channel mix.
Selling and administrative expense increased 1 percent to $4.1 billion.
Demand creation expense was $1.3 billion, up 15 percent, primarily due to higher sports marketing expense and higher brand marketing expense.
Operating overhead expense decreased 3 percent to $2.9 billion, primarily due to restructuring charges in the prior year, lower wage-related expenses and lower other administrative costs.
The effective tax rate was 33.6 percent, compared to 13.1 percent for the same period last year, primarily due to decreased benefits from stock-based compensation and one-time items that have an outsized impact on the tax rate because of lower pre-tax income in the quarter.
Net income was $0.2 billion, down 86 percent, and Diluted earnings per share was $0.14, a decrease of 86 percent.
Fiscal 2025 Income Statement Review
Revenues for NIKE, Inc. were $46.3 billion, down 10 percent on a reported basis and down 9 percent on a currency-neutral basis.
Revenues for the NIKE Brand were $44.7 billion, down 9 percent on a reported and currency-neutral basis, driven by declines across all geographies.
NIKE Direct revenues were $18.8 billion, down 13 percent on a reported basis and down 12 percent on a currency-neutral basis, due to a 20 percent decrease in NIKE Brand Digital, while NIKE-owned stores were flat.
Wholesale revenues were $25.9 billion, down 7 percent on a reported basis and down 6 percent on a currency-neutral basis.
Revenues for Converse were $1.7 billion, down 19 percent on a reported basis and down 18 percent on a currency-neutral basis, due to declines across all territories.
Gross margin decreased 190 basis points to 42.7 percent, primarily due to higher discounts, changes in channel mix and higher inventory obsolescence reserves, partially offset by lower product costs.
Selling and administrative expense decreased 3 percent to $16.1 billion.
Demand creation expense was $4.7 billion, up 9 percent, primarily due to higher brand marketing expense and higher sports marketing expense.
Operating overhead expense decreased 7 percent to $11.4 billion, primarily due to restructuring charges in the prior year, lower wage-related expenses and lower other administrative costs.
The effective tax rate was 17.1 percent, compared to 14.9 percent for the same period last year, primarily due to changes in earnings mix, decreased benefits from stock-based compensation and non-recurring one-time benefits in the prior year, partially offset by a one-time, non-cash deferred tax benefit provided by US tax regulations related to foreign currency gains and losses.
Net income was $3.2 billion, down 44 percent, and Diluted earnings per share was $2.16, a decrease of 42 percent.
May 31, 2025 Balance Sheet Review
Inventories for NIKE, Inc. were $7.5 billion, flat compared to the prior year.
Cash and equivalents and short-term investments were $9.2 billion, down approximately $2.4 billion from last year, as cash generated from operations was more than offset by share repurchases, cash dividends, bond repayment and capital expenditures.
Shareholder Returns
NIKE continues to have a strong track record of consistently increasing returns to shareholders, including 23 consecutive years of increasing dividend payouts.
In the fourth quarter, the Company returned approximately $0.8 billion to shareholders, including:
Dividends of $591 million, up 6 percent from prior year.
Share repurchases of $202 million, reflecting 3.2 million shares retired as part of the four-year, $18 billion program approved by the Board of Directors in June 2022.
In fiscal 2025, the Company returned approximately $5.3 billion to shareholders, including:
Dividends of $2.3 billion, up 6 percent from prior year.
Share repurchases of $3.0 billion, reflecting 37.6 million shares retired as part of the four-year, $18 billion program approved by the Board of Directors in June 2022.
As of May 31, 2025, a total of 122.6 million shares have been repurchased under the current program for a total of approximately $12.0 billion.
Conference Call
NIKE, Inc. management will host a conference call beginning at approximately 2:00 p.m. PT on June 26, 2025, to review fiscal fourth quarter and full year results. The conference call will be broadcast live via the Internet and can be accessed at http://investors.nike.com. For those unable to listen to the live broadcast, an archived version will be available at the same location through 9:00 p.m. PT, July 17, 2025.
About NIKE, Inc.
NIKE, Inc., based near Beaverton, Oregon, is the world's leading designer, marketer and distributor of authentic athletic footwear, apparel, equipment and accessories for a wide variety of sports and fitness activities. Converse, a wholly-owned NIKE, Inc. subsidiary brand, designs, markets and distributes athletic lifestyle footwear, apparel and accessories. For more information, NIKE, Inc.'s earnings releases and other financial information are available on the Internet at http://investors.nike.com. Individuals can also visit http://news.nike.com and follow @NIKE.
Forward-Looking Statements
This press release contains forward-looking statements regarding our expectations of our future results and our strategy, which involve risks and uncertainties that could cause actual results to differ materially. These risks and uncertainties are detailed from time to time in reports filed by NIKE with the U.S. Securities and Exchange Commission (SEC), including Forms 8-K, 10-Q and 10-K.
*
Non-GAAP financial measures. See additional information in the accompanying Divisional Revenues, Supplemental NIKE Brand Revenue and Diluted earnings per share tables.
NIKE, Inc.
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
THREE MONTHS ENDED
%
TWELVE MONTHS ENDED
%
(In millions, except per share data)
5/31/2025
5/31/2024
Change
5/31/2025
5/31/2024
Change
Revenues
$
11,097
$
12,606
-12
%
$
46,309
$
51,362
-10
%
Cost of sales
6,628
6,972
-5
%
26,519
28,475
-7
%
Gross profit
4,469
5,634
-21
%
19,790
22,887
-14
%
Gross margin
40.3
%
44.7
%
42.7
%
44.6
%
Demand creation expense
1,253
1,091
15
%
4,689
4,285
9
%
Operating overhead expense
2,895
2,997
-3
%
11,399
12,291
-7
%
Total selling and administrative expense
4,148
4,088
1
%
16,088
16,576
-3
%
% of revenues
37.4
%
32.4
%
34.7
%
32.3
%
Interest expense (income), net
(22
)
(53
)
—
(107
)
(161
)
—
Other (income) expense, net
25
(127
)
—
(76
)
(228
)
—
Income before income taxes
318
1,726
-82
%
3,885
6,700
-42
%
Income tax expense
107
226
-53
%
666
1,000
-33
%
Effective tax rate
33.6
%
13.1
%
17.1
%
14.9
%
NET INCOME
$
211
$
1,500
-86
%
$
3,219
$
5,700
-44
%
Earnings per common share:
Basic
$
0.14
$
0.99
-86
%
$
2.17
$
3.76
-42
%
Diluted
$
0.14
$
0.99
-86
%
$
2.16
$
3.73
-42
%
Weighted average common shares outstanding:
Basic
1,476.7
1,508.0
1,484.9
1,517.6
Diluted
1,477.7
1,516.7
1,487.6
1,529.7
Dividends declared per common share
$
0.400
$
0.370
$
1.570
$
1.450
NIKE, Inc.
CONSOLIDATED BALANCE SHEETS
(Unaudited)
May 31,
May 31,
% Change
(Dollars in millions)
2025
2024
ASSETS
Current assets:
Cash and equivalents
$
7,464
$
9,860
-24
%
Short-term investments
1,687
1,722
-2
%
Accounts receivable, net
4,717
4,427
7
%
Inventories
7,489
7,519
0
%
Prepaid expenses and other current assets
2,005
1,854
8
%
Total current assets
23,362
25,382
-8
%
Property, plant and equipment, net
4,828
5,000
-3
%
Operating lease right-of-use assets, net
2,712
2,718
0
%
Identifiable intangible assets, net
259
259
0
%
Goodwill
240
240
0
%
Deferred income taxes and other assets
5,178
4,511
15
%
TOTAL ASSETS
$
36,579
$
38,110
-4
%
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Current portion of long-term debt
$
—
$
1,000
-100
%
Notes payable
5
6
-17
%
Accounts payable
3,479
2,851
22
%
Current portion of operating lease liabilities
502
477
5
%
Accrued liabilities
5,911
5,725
3
%
Income taxes payable
669
534
25
%
Total current liabilities
10,566
10,593
0
%
Long-term debt
7,961
7,903
1
%
Operating lease liabilities
2,550
2,566
-1
%
Deferred income taxes and other liabilities
2,289
2,618
-13
%
Redeemable preferred stock
—
—
—
Shareholders' equity
13,213
14,430
-8
%
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY
$
36,579
$
38,110
-4
%
NIKE, Inc.
DIVISIONAL REVENUES
(Unaudited)
% Change Excluding Currency Changes1
% Change Excluding Currency Changes1
THREE MONTHS ENDED
%
TWELVE MONTHS ENDED
%
(Dollars in millions)
5/31/2025
5/31/2024
Change
5/31/2025
5/31/2024
Change
North America
Footwear
$
3,104
$
3,587
-13
%
-13
%
$
12,684
$
14,537
-13
%
-13
%
Apparel
1,303
1,398
-7
%
-7
%
5,837
5,953
-2
%
-2
%
Equipment
296
293
1
%
2
%
1,051
906
16
%
16
%
Total
4,703
5,278
-11
%
-11
%
19,572
21,396
-9
%
-8
%
Europe, Middle East & Africa
Footwear
1,893
2,067
-8
%
-9
%
7,569
8,473
-11
%
-10
%
Apparel
929
1,049
-11
%
-12
%
3,971
4,380
-9
%
-9
%
Equipment
178
176
1
%
0
%
717
754
-5
%
-5
%
Total
3,000
3,292
-9
%
-10
%
12,257
13,607
-10
%
-10
%
Greater China
Footwear
1,074
1,357
-21
%
-20
%
4,805
5,552
-13
%
-13
%
Apparel
372
460
-19
%
-19
%
1,616
1,828
-12
%
-12
%
Equipment
30
46
-35
%
-33
%
165
165
0
%
1
%
Total
1,476
1,863
-21
%
-20
%
6,586
7,545
-13
%
-12
%
Asia Pacific & Latin America
Footwear
1,114
1,226
-9
%
-5
%
4,452
4,865
-8
%
-4
%
Apparel
398
416
-4
%
-1
%
1,541
1,614
-5
%
-1
%
Equipment
63
63
0
%
3
%
258
250
3
%
7
%
Total
1,575
1,705
-8
%
-3
%
6,251
6,729
-7
%
-3
%
Global Brand Divisions2
9
11
-18
%
0
%
48
45
7
%
10
%
TOTAL NIKE BRAND
10,763
12,149
-11
%
-11
%
44,714
49,322
-9
%
-9
%
Converse
357
480
-26
%
-26
%
1,692
2,082
-19
%
-18
%
Corporate3
(23
)
(23
)
—
—
(97
)
(42
)
—
—
TOTAL NIKE, INC. REVENUES
$
11,097
$
12,606
-12
%
-11
%
$
46,309
$
51,362
-10
%
-9
%
TOTAL NIKE BRAND
Footwear
$
7,185
$
8,237
-13
%
-12
%
$
29,510
$
33,427
-12
%
-11
%
Apparel
3,002
3,323
-10
%
-9
%
12,965
13,775
-6
%
-5
%
Equipment
567
578
-2
%
-1
%
2,191
2,075
6
%
6
%
Global Brand Divisions2
9
11
-18
%
0
%
48
45
7
%
10
%
TOTAL NIKE BRAND REVENUES
$
10,763
$
12,149
-11
%
-11
%
$
44,714
$
49,322
-9
%
-9
%
1 The percent change has been calculated using actual exchange rates in use during the comparative prior year period and is provided to enhance the visibility of the underlying business trends by excluding the impact of translation arising from foreign currency exchange rate fluctuations, which is considered a non-GAAP financial measure. Management uses this non-GAAP financial measure when evaluating the Company's performance, including when making financial and operating decisions. Additionally, management believes this non-GAAP financial measure provides investors with additional financial information that should be considered when assessing the Company's underlying business performance and trends. References to this measure should not be considered in isolation or as a substitute for other financial measures calculated and presented in accordance with U.S. GAAP and may not be comparable to similarly titled non-GAAP measures used by other companies.
2 Global Brand Divisions revenues include NIKE Brand licensing and other miscellaneous revenues that are not part of a geographic operating segment.
3 Corporate revenues primarily consist of foreign currency hedge gains and losses related to revenues generated by entities within the NIKE Brand geographic operating segments and Converse, but managed through the Company's central foreign exchange risk management program.
NIKE, Inc.
SUPPLEMENTAL NIKE BRAND REVENUE DETAILS
(Unaudited)
% Change Excluding Currency Changes1
TWELVE MONTHS ENDED
%
(Dollars in millions)
5/31/2025
5/31/2024
Change
NIKE Brand Revenues by:
Sales to Wholesale Customers
$
25,883
$
27,758
-7
%
-6
%
Sales through NIKE Direct
18,783
21,519
-13
%
-12
%
Global Brand Divisions2
48
45
7
%
10
%
TOTAL NIKE BRAND REVENUES
$
44,714
$
49,322
-9
%
-9
%
NIKE Brand Revenues by:3
Men's
$
23,216
$
24,785
-6
%
-6
%
Women's
9,719
10,366
-6
%
-5
%
Kids'
5,695
6,019
-5
%
-5
%
Jordan Brand
7,270
8,701
-16
%
-16
%
Others4
(1,234
)
(594
)
-108
%
-106
%
Global Brand Divisions2
48
45
7
%
10
%
TOTAL NIKE BRAND REVENUES
$
44,714
$
49,322
-9
%
-9
%
1 The percent change has been calculated using actual exchange rates in use during the comparative prior year period and is provided to enhance the visibility of the underlying business trends by excluding the impact of translation arising from foreign currency exchange rate fluctuations, which is considered a non-GAAP financial measure. Management uses this non-GAAP financial measure when evaluating the Company's performance, including when making financial and operating decisions. Additionally, management believes this non-GAAP financial measure provides investors with additional financial information that should be considered when assessing the Company's underlying business performance and trends. References to this measure should not be considered in isolation or as a substitute for other financial measures calculated and presented in accordance with U.S. GAAP and may not be comparable to similarly titled non-GAAP measures used by other companies.
2 Global Brand Divisions revenues include NIKE Brand licensing and other miscellaneous revenues that are not part of a geographic operating segment.
3 Beginning in fiscal 2025, with the continued rollout of a new Enterprise Resource Planning Platform, we have removed the non-GAAP financial measure of wholesale equivalent revenues. There is no change to our reported revenues or gross margin. Prior year amounts have been recast to conform to fiscal 2025 presentation.
4 Others include products not allocated to Men's, Women's, Kids' and Jordan Brand, as well as certain adjustments that are not allocated to products designated by consumer.
NIKE, Inc.
EARNINGS BEFORE INTEREST AND TAXES1
(Unaudited)
THREE MONTHS ENDED
%
TWELVE MONTHS ENDED
%
(Dollars in millions)
5/31/2025
5/31/2024
Change
5/31/2025
5/31/2024
Change
North America
$
1,045
$
1,462
-29
%
$
4,735
$
5,822
-19
%
Europe, Middle East & Africa
472
797
-41
%
2,575
3,388
-24
%
Greater China
304
548
-45
%
1,602
2,309
-31
%
Asia Pacific & Latin America
319
479
-33
%
1,527
1,885
-19
%
Global Brand Divisions2
(1,246
)
(1,148
)
-9
%
(4,699
)
(4,720
)
0
%
TOTAL NIKE BRAND1
894
2,138
-58
%
5,740
8,684
-34
%
Converse
27
94
-71
%
240
474
-49
%
Corporate3
(625
)
(559
)
-12
%
(2,202
)
(2,619
)
16
%
TOTAL NIKE, INC. EARNINGS BEFORE INTEREST AND TAXES1
296
1,673
-82
%
3,778
6,539
-42
%
EBIT margin1
2.7
%
13.3
%
8.2
%
12.7
%
Interest expense (income), net
(22
)
(53
)
—
(107
)
(161
)
—
TOTAL NIKE, INC. INCOME BEFORE INCOME TAXES
$
318
$
1,726
-82
%
$
3,885
$
6,700
-42
%
1 Management evaluates the performance of the Company's segments and allocates resources based on earnings before interest and taxes (commonly referred to as "EBIT"), which represents Net income before Interest expense (income), net and Income tax expense. Total NIKE Brand EBIT, Total NIKE, Inc. EBIT and EBIT margin are considered non-GAAP financial measures. Management uses these non-GAAP financial measures when evaluating the Company's performance, including when making financial and operating decisions. Additionally, management believes these non-GAAP financial measures provide investors with additional financial information that should be considered when assessing the Company's underlying business performance and trends. EBIT margin is calculated as total NIKE, Inc. EBIT divided by total NIKE, Inc. Revenues. References to EBIT and EBIT margin should not be considered in isolation or as a substitute for other financial measures calculated and presented in accordance with U.S. GAAP and may not be comparable to similarly titled non-GAAP measures used by other companies.
2 Global Brand Divisions primarily represents costs, including product creation and design expenses, that are centrally managed for the NIKE Brand, as well as costs associated with NIKE Direct global digital operations and enterprise technology. Global Brand Divisions revenues include NIKE Brand licensing and other miscellaneous revenues that are not part of a geographic operating segment.
3 Corporate consists primarily of unallocated general and administrative expenses, including expenses associated with centrally managed departments; depreciation and amortization related to the Company's corporate headquarters; unallocated insurance, benefit and compensation programs, including stock-based compensation; and certain foreign currency gains and losses, including certain hedge gains and losses. For the twelve months ended May 31, 2024, Corporate includes the restructuring charges, recognized as a result of the Company taking steps to streamline the organization. These charges primarily reflect employee severance costs. An immaterial amount of restructuring charges was recognized for the three months ended May 31, 2024.
NIKE, Inc.
DILUTED EARNINGS PER SHARE
(Unaudited)
THREE MONTHS ENDED
TWELVE MONTHS ENDED
5/31/2024
5/31/2024
DILUTED EARNINGS PER SHARE (GAAP):
$
0.99
$
3.73
Add: Restructuring charges
0.03
0.29
Tax effect of the restructuring charges1
(0.01
)
(0.07
)
DILUTED EARNINGS PER SHARE EXCLUDING RESTRUCTURING CHARGES (NON-GAAP):2
$
1.01
$
3.95
1 Tax effect was determined by applying the tax rate applicable to the specific item.
2 Diluted earnings per share excluding the restructuring charges is a non-GAAP financial measure. The most comparable GAAP measure is Diluted earnings per share. The Company uses Diluted earnings per share excluding the restructuring charges to facilitate the evaluation of the Company's performance. The Company believes that providing Diluted earnings per share excluding the impacts of the restructuring charges is useful to investors for comparability between periods and allows investors to evaluate the impacts of the restructuring charges separately. For the three and twelve months ended May 31, 2025, there were no material restructuring charges impacting comparability.
View source version on businesswire.com: https://www.businesswire.com/news/home/20250626256960/en/
Contacts
Investor Contact:Paul Trussellinvestor.relations@nike.com
Media Contact:Virginia Rustique-Pettenimedia.relations@nike.com
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IPO market heats up: These 4 names prepare to go public next
EquityZen head of market insight Brianne Lynch joins Market Domination with Josh Lipton to discuss the initial public offering (IPO) market in light of Figma's (FIG) recent public debut and whether companies need to have an artificial intelligence (AI) story to succeed. She also shares which private companies are likely to go public next. To watch more expert insights and analysis on the latest market action, check out more Market Domination. Which are the possible candidates in your opinion, that would be on your radar, who might be willing to test the public markets this year? Sure. So, you know, several of the names on our IPO outlook for the year have already gone public. But there are a few that we're still waiting on. One of the big ones being Klarna. This is a company that was planning to go public in the spring, tabled those plans given the volatility in the market post deliberation day. Uh but they're reportedly now looking at a September IPO. So that'll be, um, the next of several Fintech IPOs we've seen. You had Circle, um, Chime, eToro. So certainly, uh, Fintech is an area where we're seeing more activity and given Klarna's brand recognition, um, and you know, value in the market, that's one we have our eyes on. Right now if you're going to go public, Brian, do you have to have an AI story? Do you have to be able to just sprinkle some of that AI magic on your S-1? Yeah. I would say at a minimum you have to try. And Figma, you know, that's something that played into their story as well. They had so many case studies of their large enterprise clients saving, you know, lots of time and money because of the AI tools that they've built into their products. So, I think that's a table stake for any company that is looking to go public. And that might be the best option for public market investors at the time because you have to remember a lot of these pure play AI companies are still very young in their life cycle. They're less likely to be going public in the next few years. So yes, that's bringing more investors into the private markets to invest. Uh but to kind of capitalize on that interest, public companies or contenders to go public will also need to have that as part of their story. Do you think there there are certain kinds of private companies, Brian, that would be more likely to receive a warm welcome to the public markets in in this environment against this backdrop? Sure. I mean, we've seen a few examples of what has worked. You know, I talked about a little bit about the need for growth, the need for profitability, but when we look at the companies that may be coming next or even the IPOs we've seen in the first half of the year, it hasn't been just one sector or one industry. You've seen Fintech, um, you've seen crypto, which is obviously growing a lot and given, you know, the regulatory tailwinds, uh, we expect that to continue to be a hot market. Um, but then, you know, Netskope, another name on our outlook, that's a cybersecurity company. Um, StubHub, another one. That's an e-commerce player. So, it's definitely not a, you know, one sector narrative that's driving the market. It's more are you growing? Are you profitable? Do you have the brand name? Um, and do you have a a story that's exciting to investors, uh, especially, uh, given the lack of public companies relative to private companies now. Related Videos Berkshire Hathaway earnings: 'Perfect' stock to own when 'worried' Tesla must pay $240M+ for deadly 2019 car crash: What to know Fed Governor Adriana Kugler to resign Dow falls more than 500 points on jobs report, tariffs Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
26 minutes ago
- Yahoo
Micah Parsons fallout: Jerry Jones' contract tactics with star players once again bites the Cowboys
In recent years, when Dallas Cowboys ownership was trying to negotiate a contract extension with one of the team's star players, an agent in the middle of the process reached a boiling point. Talks were at a difficult standstill, team owner Jerry Jones and son Stephen were renewing efforts to engage the player in a private meeting, and the agent had enough. So they picked up a phone and delivered a message directly to the Joneses. 'Stop trying to talk to my player without me.' Inside the agent community, this has been a familiar story. For years, player representatives have complained behind the scenes about how the Cowboys continue to go about their business in high-stakes negotiations. In drawn out contact talks, the furor has often been a climbing scale, beginning with general annoyance, transitioning to heated or passive-aggressive exchanges. In the worst cases, it has resulted in breaking off talks for long periods of time. Often, the familiar decay in negotiations shared an underlying theme inside the agent community, with representatives alleging that Jerry Jones had a history of attempting to manipulate players into discounted deals. First by isolating them in a face-to-face meeting without an agent present — sometimes under the guise of discussing something other than contract talks — then by pouring honey into their ear about being a lifelong member of the Cowboys, staying part of the Dallas family and sacrificing a little financially to win Super Bowl immorality together. [Join or create a Yahoo Fantasy Football league for the 2025 NFL season] Sometimes, it was an alleged sideswipe tactic that remained tucked behind a curtain of secrecy, with both sides choosing to keep any rising animus private. Other times, it seeped out in telltale moments that are likely still fresh in the minds of Cowboys fans. Moments like quarterback Dak Prescott repeatedly and publicly putting his agent, Todd France, front and center as the conduit who would complete his last two drawn-out — and sometimes prickly — contract extensions. Or the representatives of former running back Zeke Elliott not only holding him out of training camp in 2019, but moving him to Cabo San Lucas, Mexico so he could train and more easily remain out of direct communications with the Jones family. Those were two of the higher profile instances of star Cowboys players trying to keep their contract negations in the hands of their agents in an effort to realize their full value as players. But there have been others, too. What there hasn't been up to this point, is a star player willing to step out and directly challenge the way Dallas and Jerry do business. That is, until Friday, when edge rusher Micah Parsons laid his lengthy concerns bare on social media, requesting a trade and stating that he no longer wanted to be a part of the Cowboys. Within it, there was one cutting line that has been a siren scream inside the player and agent ranks: 'I no longer want to be held to close door negotiations without my agent present.' That line was a reference to a March meeting between Parsons and Jerry Jones that ultimately left the Cowboys owner feeling as if he had directly negotiated a new extension with his pass rusher. Parsons then went on to spell out some previously untold aspects of that meeting. 'In March I met with Mr. Jones to talk about leadership,' Parsons wrote on social media. 'Somehow the conversation turned into him talk contract with me. Yes I engaged in a back and forth in regards to what I wanted from my contract, but at no point did I believe this was supposed to be a formal negotiation and I informed Mr. Jones afterward my agent would reach out thinking this would get things done. But when my agent reached out and spoke to [senior director of salary cap and player contracts Adam Prasifka] he was told the deal was pretty much already done. My agent of course told him that wasn't the case and also reached out to Stephen Jones. Again the team decided to go silent.' [Get more Cowboys news: Cowboys team feed] Parsons said it was at that point he and his agent, David Mulugheta of Athletes First, made the decision to let the Cowboys reach out when they were ready to do a deal. According to Parsons, 'Up to [Friday], the team has not had a single conversation with my agent about a contract.' For Cowboys fans and the franchise in general, the post by Parsons is an earthquake of significant magnitude. It's the first time a star player has been this expansive about a problem that agents and players have complained about for a while: A penchant to cut agents out of the process and try to cut deals directly with players using tactics or criteria that clearly are meant to create a negotiating advantage for the team. This despite Parsons saying on more than once occasion that he wanted Mulugheta to play a role in negotiating his extension. In the past, Dallas has honored those requests in the midst of bank-breaking talks with the likes of Prescott, Elliott, CeeDee Lamb and others. For reasons that only the Jones family can speak to, it appears they are refusing to honor it with Parsons. It's a reality that Jerry all but said directly in July, when he suggested that he had an agreement in place between himself and Parsons. 'I'm really not going to get into responding to what Micah said I said, or what [Micah] said he said, or what Mulugheta said, or what Stephen said,' Jerry insisted. 'I'm not getting into any of that at all. We're where we are. I sign the check. Period. … Micah, he's confident in himself, he should be, he's extraordinarily bright — I can't emphasize that enough. He's very capable of negotiating anything he wants to negotiate.' In the agent community, that smacks of a my-way-or-the-highway stance. And it's how you get to the point of pushing negotiations off the table completely — only to be replaced with a trade demand. Right now, it appears that's exactly what has transpired inside Dallas. But rather than the end of this story being a record-breaking deal that heals all wounds — as has been the case in so many other acidic contract talks for Jerry Jones and Dallas — it appears the only thing broken is the resolve of Micah Parsons to remain a Cowboy.
Yahoo
26 minutes ago
- Yahoo
The 35% tariff kicked in today on Canadian goods. How big of an impact will it have?
With the signing of an executive order, U.S. President Donald Trump upped Canada's tariff rate to 35 per cent, effective at 12:01 a.m. today. That's a 10 per cent increase on the 25 per cent rate that has been in effect on Canadian goods headed south of the border since March, and is a blanket tariff that will apply to Canadian products across the board. However, that doesn't paint the whole picture. A very small number of Canadian products will be subjected to the 35 per cent tariff. That's because the tariffs don't apply to all goods that are subject to the Canada-U.S.-Mexico Agreement (CUSMA), the existing free trade deal governing trade between the three countries. Those products can keep going across the border free of tariffs. Most of the goods Canada exports to the U.S. are covered by CUSMA. The Bank of Canada said in its monetary policy report released Wednesday that an estimated 95 per cent of stuff sent south of the border qualifies under that agreement. That means the new, higher 35 per cent rate will be felt by a small fraction of exports that are not CUSMA-compliant, which likely includes a broad array of products across all sectors, according to experts. "[CUSMA] is the one thing that is ensuring normalcy in trade flows in much of the economy," said Eric Miller, president and CEO of Rideau Potomac Strategy Group. "And so the maintenance of that exemption was absolutely crucial." WATCH | Trump increases tariff on Canada to 35%, White House says: There's no simple list of items that are CUSMA-compliant, because products are certified on a case-by-case basis, based on a number of complicated factors. In order to get the exemption, a certain amount of the product needs to be made in Canada, with Canadian inputs. Take the example of a steak versus that of a screwdriver. If a cow is born, raised, slaughtered and prepared in Alberta, then the steak — the end product — is clearly Canadian and would be shielded under CUSMA, says Miller. But a typical screwdriver is made of metal, along with plastic or rubber for the handle. The manufacturer would have to make sure that enough of the materials come from Canada, Mexico or the U.S. That amount is usually about 60 per cent, according to lawyer Daniel Kiselbach, a managing partner at Miller Thompson LLP. WATCH | What we know — and what's still unclear — after tariffs hiked on Canadian goods: Then, you have to make sure you're adding value to those parts and converting them to a finished product before shipping it out. In the case of the screwdriver, you're taking the raw materials and making them into a new, finished item, so that would meet the bar. Overall, anything harvested or mined is usually CUSMA-compliant, Kiselbach said. Anything manufactured or produced in Canada gets more complicated. Electronics and machinery, in particular, are product types that tend to have a harder time getting CUSMA certification. On top of that, the certification process can be challenging, requiring records showing where all a product's components come from, and it is costly. "[Businesses] don't necessarily understand what the rules are telling them," Miller said. "It's almost like cryptography or something." For that reason, Miller says some businesses have simply not acquired CUSMA certification in the past — something that's changing now that the rates are so much higher. WATCH | Is Canada-U.S. free trade dead?: While the fraction of companies that don't qualify for the free trade exemption might be small, Miller says the impact of the new rate should not be overlooked. Many of those who will be hit by the Saturday tariff increase will be small- to medium-sized businesses that rely on components that are made in countries outside of Canada — and can't easily replace them with materials sourced elsewhere. "If you are used to sourcing a particular input from China for the last 10 years, it's not so easy to go and say, 'Now I'm going to buy that good somewhere else,'" Miller said. "They can't easily change and they can't meet the rules, so they have to pay 35 per cent. And for them, going from 25 per cent to 35 per cent is pretty devastating," Miller. Kiselbach says 35 per cent tariffs might be higher than some companies' profit margins, meaning they'd be losing money on each item they sell at the current rate. Sectoral tariffs still in play The 35 per cent rate also has no bearing on the rates Trump has set for specific sectors. Those include a 50 per cent tariff on steel and aluminum, as well as 25 per cent on cars and auto parts, both of which had already been in effect. A new, 50 per cent tariff on some copper products, including copper pipes and wiring, also went into effect today. The Trump administration made carveouts for copper input materials such as ores, concentrates and cathodes, which is providing the industry some relief. And while the sector-specific rates are largely not new, the impact of these steep rates on important sectors cannot be ignored, said Alan Arcand, chief economist with the trade association Canadian Manufacturers and Exporters. "These are very important industries for Canada," Arcand said. "These are tariff rates that are just not … sustainable for these industries. So that's really the rub of the issue right now." Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
