Originally written on Sports Business Digest  |  Last updated 11/18/14
It was all good, a few months ago. Dwyane Wade had just signed a new endorsement deal with Chinese sportswear company, Li-Ning. The multi-million dollar deal, which some estimated would pay Wade $100 million over the next 10 years, also gave Wade a significant equity stake in Li-Ning. As it turns out, Wade's newest partial acquisition? It is not doing too well. Li-Ning's share price dropped nearly 15% on Friday as the company planned to issue nearly $250M worth of convertible securities for capital restructuring, as it tries to reverse two sub-par years of performance. While Li-Ning is a strong brand name throughout China, the company has spent the last few years dealing with unsold inventory and increasing competition not only from well-known competitors such as Nike and Adidas, but a number of local Chinese have flooded the market, (such as Peak, who recently signed Spurs guard Tony Parker to an endorsement deal) looking to lay claim to Li-Ning's throne. But, now in the middle of restructuring, is the company seriously in trouble? Well...maybe, “They are in a lot of trouble, and this latest news shows the situation is even worse than we thought,” said Shaun Rein of China Market Research in Shanghai. “They may not be able to continue as a standalone concern in a year or two,” he said. (via Financial Times) It is estimated that the company will report a nearly $20 million dollar net loss for 2012, as the company looks to streamline its inventory management moving forward, hence the need to restructure the business. And what of Wade? His new WADE line with Li-Ning has yet to have a large release here in the United States, and, as mentioned, the company itself is going through a costly restructuring, while suffering significant losses. While Wade surely evaluated the risk of signing with Li-Ning, he didn't seem too concerned with the company's standing when he signed the partnership deal last October, "I first visited China in 2008, when I competed in the Beijing Olympics, and was deeply moved by the country's genuine passion for basketball," said Wade. "I have been blessed with an opportunity to make an impact on the game in the United States, and I look forward to now being active with the sport on a more global level. I am honored to join forces with LI-NING and grow the game, beginning in China, which is home to more basketball players – 200 million – than any other country in the world." While it is certainly too early to write Li-Ning off -- some analysts expected huge losses for 2012; a bottoming out in order to right the ship, one has to wonder if Wade has any concerns that his first shoe deal outside of the Nike umbrella (Wade initially signed a shoe deal with Converse, which was purchased by Nike a few weeks later) is off to such a rocky start.
GET THE YARDBARKER APP:
Ios_download En_app_rgb_wo_45
MORE FROM YARDBARKER

Mark Cuban will play the President in 'Sharknado 3'

Five most exciting one-bid conference tournaments

Report: Redskins interested in Ndamukong Suh

Report: Darrelle Revis likely to hit free agent market

Le'Veon Bell could face up to a four-game suspension

LIKE WHAT YOU SEE?
GET THE DAILY NEWSLETTER:

Report: Giants place franchise tag on Jason Pierre-Paul

Vikings GM: Team has spoken with Adrian Peterson

Yu Darvish on notion he quit on Rangers: ‘That’s BS‘

Tiger Woods' agent refutes drug suspension claim

Bryce Harper says he needs to ‘step up’ this season

Report: Chiefs place franchise tag on Justin Houston

Nik Stauskas wears Michigan State gear after lost bet

Bret Bielema takes away player's car after DUI

NHL player traded after daughter's heartbreaking letter

Curt Schilling unloads on Twitter trolls again

Pirates Corey Hart cut his foot getting into a whirlpool

Steve Spurrier joins Twitter, jabs Clemson

Michael Jordan makes his first Forbes billionaire list

Nick Young rips ESPN anchor over Iggy Azalea insult

Sad LeBron literally looks in mirror after loss to Rockets

Could Holly Holm be a worthy challenger for Ronda Rousey?

Gronk spikes Lombardi Trophy cake on his bro's head

In defense of Geno Smith

NBA News
Delivered to your inbox
You'll also receive Yardbarker's daily Top 10, featuring the best sports stories from around the web. Customize your newsletter to get articles on your favorite sports and teams. And the best part? It's free!

By clicking "Sign Me Up", you have read and agreed to the Fox Sports Digital Privacy Policy and Terms of Use. You can opt out at any time. For more information, please see our Privacy Policy.
the YARDBARKER app
Get it now!
Ios_download En_app_rgb_wo_45

Mark Cuban will be Prez in 'Sharknado 3'

Report: Redskins interested in Suh

Report: Revis likely to hit free agency

Steve Spurrier joins Twitter

MJ makes Forbes billionaire list

Nick Young fires back at Robert Flores

Sad LeBron literally looks in mirror after loss to Rockets

MLS 2015 season preview

Report: Broncos to franchise Demaryius

James Harden kicks LeBron in groin

Lynch: 'I was expecting the ball'

Report: Rangers get Yandle from Coyotes

Today's Best Stuff
For Bloggers

Join the Yardbarker Network for more promotion, traffic, and money.

Company Info
Help
What is Yardbarker?

Yardbarker is the largest network of sports blogs and pro athlete blogs on the web. This site is the hub of the Yardbarker Network, where our editors and algorithms curate the best sports content from our network and beyond.