Originally posted on Sports Business Digest  |  Last updated 1/28/13
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.
MORE FROM YARDBARKER:
Kevin Durant has...RUSSELL MANIA!
GET THE YARDBARKER APP:
Ios_download En_app_rgb_wo_45
MORE FROM YARDBARKER

Kaepernick explains why he is protesting national anthem

Dwyane Wade’s cousin shot and killed in Chicago

NFL tries to reduce kick returns, promptly causes more kick returns

San Francisco Giants inching closer to a record they really don’t want

Clint Dempsey undergoing testing for irregular heartbeat

LIKE WHAT YOU SEE?
GET THE DAILY NEWSLETTER:

Troubling details emerge from Jeremy Jeffress' DWI arrest

Chargers would welcome Joey Bosa if he signed contract

Falcons rookie Keanu Neal needs surgery on knee

Jerry Jones unhappy with Ezekiel Elliott's dispensary visit

Texas Tech using fake Twitter accounts to track players

Nike creates custom Air Jordan shoes in tribute to Craig Sager

Heading into the homestretch: 2016 ROY favorites

Premier League notebook: The love affair at Man U

One Gotta Go: NFL legends talking comedians is no joke

It's all about timing: The evolution of the clock in sports

Predicting the unpredictable: Your MTV VMAs rundown

10 great moments in the career of Roberto Duran

Marshall’s first impression of Fitzpatrick: ‘He was terrible’

One Gotta Go: NFL legends bring the hate for fast food

What you need to know about the Champions League draw

Six worst quarterback situations in the NFL

Can the San Francisco Giants bust their teamwide slump?

A look at 2016 college football conference changes

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

Premier League notebook: The love affair at Man U

Heading into the homestretch: 2016 ROY favorites

One Gotta Go: NFL legends talking comedians is no joke

It's all about timing: The evolution of the clock in sports

Predicting the unpredictable: Your MTV VMAs rundown

10 great moments in the career of Roberto Duran

The 20 best boxing movies of all time

One Gotta Go: NFL legends bring the hate for fast food

What you need to know about the Champions League draw

Can the San Francisco Giants bust their teamwide slump?

Today's Best Stuff
For Publishers
Company Info
Help
Follow Yardbarker