November 16.
Phillip Knight was in his office reviewing financial statements, and the new Slam Dunk-designed sneakers have generated significant sales. Michael Jordan himself surprisingly declared the series fantastic and agreed to use the comic's sneakers as part of the advertising campaign. The Slam Drunk manga has a solid base of sports enthusiasts and is the top-selling comic in most states. However, the ghost report is particularly overwhelming in large cities, causing a disparity in sales that has been gradually narrowing.
The use of some superstars has led to substantial profits for the company. Even the distribution of cards has caused a certain sensation within the company. Players are surprisingly eager to appear in Billy's designs. Moreover, some teams have approached for a collaboration with Nike. Behind the scenes, the NBA wants to create its cards for sale.
This is a total success!
Peter Ruppert hit the negotiations for that small comic company perfectly. He's even surprised by the quality of the artwork, from the intricate details to the captivating story. Why hadn't anyone focused on bringing a good basketball story to the basketball country? He has no idea, but joining forces has been satisfying for the company.
-Amanda, a pleasure. Have Ruppert contact me. - said Philip Knight, speaking on the phone in his office. He's very pleased with the company's growth for this year.
-Sir, he's currently in negotiations. Yesterday's meeting was canceled due to some issues. He left a note that he'll call as soon as the contract is finalized. - said Amanda.
-In that case, please apologize for the inconvenience and let no one call me until after lunch. - said Philip.
The commercial agreement between Nike and Lux Comics officially closes today, in the same location as before: The Saint Claire, the historic hotel located in downtown San Jose, near the San Jose Diridon Station. Billy doesn't come to such elegant places very often, but he can say that the social relationship between the parties is better positioned now than it was two years ago.
-Thomas, great to see you. - said Peter Rupp. He was accompanied by an unfamiliar young man. Previously, he was accompanied by Thomas Clarke, who joined him in the last meeting. Life's twists and turns happen quickly, and now Thomas Clarke is handling different matters in the company.
-Pleasure to see you again, Peter, and sir... -
-Liam Wight. - the young man said.
-Pleasure. -
-Pleasure, Mr. Rupp, Mr. Wight. - said Billy.
-Ah, Billy, what a pleasure to see you again. I am happily surprised by your work on the trading cards. All your efforts have brought tremendous success to the company. I want to thank you for your outstanding work. - Peter Rupp said, his white teeth almost lighting up the room.
-Not at all, Mr. Rupp. I'm delighted with the relationship with Nike. The ways we've worked together have allowed us to grow as a company. I should thank you as well. - Billy said.
Although they only earned 12% from the company-produced cards, it was enough to achieve success. One million dollars for the company from the first months of sales was well received. Moreover, the calculations for the past two months were still pending, and these are the best sales months. The commercial license was a remarkable benefit, providing salvation for the company's rapid growth at the time. Now, it's an active income stream that supports Billy's occasional investments.
Initially, Nike presented the business to counter Adidas in the basketball market. This market, dominated by Nike, has always been its strong point compared to its sibling company. Adidas has been competing with them in soccer (football) in Europe, as well as athletics, tennis, and running. Among these, they have a close fight, but it's in basketball where the market favors Nike.
Any move by Adidas into this market raises alarms, and even if it means losing money, in the long term, it's more beneficial not to let them enter. Lux Comics, a progressive company that has innovated in the field of illustration, is drawing a lot of attention. Now, its sales aren't just good; it has become a social cornerstone for attracting more teams, players, and consumers.
-Perfect. Management will cover the manufacturing costs. Anne has sent the lists, and the funds have already been approved for another batch of two million cards. She wants to sell them in some European stores. - said Peter Ruppe.
-That's fantastic, but sir, I think we should go for three million. - said Billy.
-Isn't that another way to make money? - Peter Rupp playfully questioned.
-Not at all, I predict that there will be higher sales in the United States, and we can sell the cards. Lux Comics will keep the surplus if sales aren't satisfactory. - said Billy.
-I agree. For now, there's approval for two million units, but based on how sales progress in the coming months, we can place another order. - said Peter Rupp.
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-Don't worry, I'll expand the cards a bit, to 300 designs. This can only be done once. If we go beyond 300 designs, I can't guarantee profit. - said Billy.
-Expand? -
-Yes, I want to feature future stars from the past, include some characters from Slam Dunk, and create some imaginary street teams using available players. To add some fun to the cards, after all, kids are a part of the market. - said Billy.
-How would you achieve this fun? - Peter Rupp questioned.
-Different themes. Street basketball is one, along with some others like NBA competitions, top scorers, and best three-point shooters, adding a bit of science to the cards. - Billy said.
-Yes, I believe that's a wise decision. - said Peter Rupp.
-So, the new contract between our companies is based on collaboration. How will it be done this time... - said Billy.
-This time, we'll run a better joint campaign. I hope our collaboration will improve. Before we proceed, I want to know certain necessary conditions for our work. - said Peter Rupp.
He extended his hand to signal a waiter. Five minutes later, a bottle of wine with three glasses arrived. Billy ordered a cheeseburger and a Coca-Cola, sticking to the tradition.
-Well, since we're on the subject. - Thomas said. - Tell us what conditions you've set this time.
-We want to create a clothing line so that our basketball stars can promote the brand, along with other sponsored athletes we have now. How strong are your clothing design skills? We're unsure, which is why we'll bring in specialists to help integrate your comic into our clothing. One of our top players even requested a unique and special design from you. - Peter Rupp said.
-I have very limited knowledge of clothing design, sir, but I'm skilled at drawing. With some assistance, it's possible to create an original clothing line. - Billy said confidently, his drawing abilities on the rise.
-That's why we're asking for your collaboration. Your comic is particularly popular among young people aspiring to be basketball players. Our sales have increased from 3% to 7% in all our stores. With your comic, we'll generate demand for our clothing brand among teenagers, children, youths, and professionals – those who want to be part of Nike, buy Nike, and live in Nike. - Peter said.
-It's possible to do. I have a few ideas. As long as I can work with the people in charge of clothing design, I can make it happen. - Billy said.
-I like the sound of that. - Peter said, taking small sips from his glass of wine.
-What's next, sir? I've already agreed to participate in the clothing lines. - Billy said.
-The terms are the same as in the previous contract, except we desire more exclusivity across the clothing line, footwear, sports consultations, and keychain products. Your ventures into animated programming caught our attention. We didn't expect your company to have such a rapid boom. So, that would be all for us, a bit of security to prevent direct competition. - Peter said.
-We can fulfill those conditions as well, as long as the advertising lines for Lux Comics are improved, we continue publishing our Slam Dunk comics in your stores, and we maintain a close relationship with Nike. I also need to add that we haven't negotiated with any companies for a toy line yet. - Billy said.
-The toy chain isn't part of our demand line. However, we'd be happy to run some advertising campaigns with your company, as long as you're able to assist. - Peter said.
-I don't have any more demands. Our comics alone are sufficient. - Billy said.
-As for the agreement, based on our data, the licensing fee can be set at three million dollars and a 6.5% share of the product profits. Philip mentioned that this is an incentive for your company. For four years. - Peter said.
-Four million dollars. - Billy said.
It was the minimum limit they had negotiated with Anne and her father. One million per year. The trading cards alone brought in a bit more money, according to sales estimates. Nike's profits have certainly surged, at least in the basketball field.
-We can take it, but the payments will be staggered, two at the beginning of the activity and two at the end. - Peter said.
-That's possible if the payments are in reasonable intervals. - Billy said, calculating. He needed five million dollars to invest in Pixar. But that process could wait; for now, the profits were good. It's already beyond the five million they're expecting for the coming year.
The moves of the wealthy are peculiar. Paying immediately is never in their playbook. Constant payment delays now serve to assert their dominant position. With Nike, such issues aren't excessive, but they're still present.
-Of course, one million per year. We would deliver the first payment next month, and the following payments in December of each respective year. - Peter Rupp said.
-That's fair. I'm available to create the clothing line at any time, as long as you're willing to come to San Jose. Traveling is different. In the first week of January, I can make a provisional trip, or during spring break in March. - Billy said.
I see. I'll take care of coordinating the schedules with the design team. -- Peter said, noting down the contract details in his black notebook, which was about two palms long. He wrote with a deliberate calmness. -- We'll hire specialists to handle these designs. We'll set up the meetings as soon as possible. -
-Well, I have a busy schedule too, sir. Managing my comic company is quite complicated when you also must attend school. - Billy said.
-A very good young man. My son only plays American football relentlessly and thinks about women and parties. Ah, the joys of youth! - Peter said. - Liam here is a recent honor graduate from the University of New York. -
Billy paused to look at him.
-What does Mr. Liam do? - Billy asked.
-In my department, heachievehe company's general sales advisor. His desk is his current occupation. He oversees the state affairs when he deems it ready. - Peter Rupp said.
-Sounds laborious. I just focus on drawing the best I can. - Billy said.
-Your biggest asset is your hard work, son. Drawing is earning you four million dollars. It's not something just anyone can do. - Peter said.
-Yes, sir. - Billy said.
-Well, young man, we'll conclude this meeting for now. It's extended far beyond the available time. Have a good day. - Peter said.
He was about to leave the hotel restaurant. After taking a deep sip from his wine glass.
-It's good money. With our popularity, I can't wait to see the value that companies will put on the table for your drawings. - Thomas Carson said, pouring himself a glass of wine.
And so, the second meeting with Nike ended. A four-year agreement, four million dollars with a 6.5% interest on Nike's merchandise sales, based on the advertising designs in the comics and the work of creating the clothing line.
Billy took another bite of his cheeseburger, thinking about the future of the negotiations.
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I have a question, what is your ranking of Pixar movies? -
What is the ranking of animated movies that you would do, with those movies?