Ohio State superstar's new NIL deal shows Nike might be losing its luster

"One of the most memorable moments from last season was losing my black stripe and officially becoming a Buckeye," the 19-year-old wideout said Wednesday in a press release (h/t Elizabeth Swinton of Sports Illustrated). "Fast forward a year and I'm blessed to be adding three, joining the fastest brand in football. It's crazy to be partnering with a brand that has such a talented roster of players and that I've been wearing since I was a young kid. We're not done yet." 

This is another huge loss for Nike, which failed to sign Cooper Flagg —the No. 1 overall pick of the 2025 NBA Draft — last year. The former Duke Blue Devils forward (now with the Dallas Mavericks) signed a multiyear deal with New Balance in August 2024.

Like most NIL contracts, the details of Smith's deal remain unknown, but it could also be a long-term commitment like that of Flagg.

Signing college athletes to lengthy deals allows brands to foster relationships with them. It can also help them cash in if they become stars in the pros. Flagg and Smith certainly have the potential to do that. 

After winning the 2024-25 Associated Press College Basketball Player of the Year, Flagg is expected to become a game-changer for the Mavericks. As of Wednesday, FanDuel Sportsbook gives the 18-year-old forward the best Rookie of the Year odds (-180).  

Smith is ineligible for the NFL Draft until 2027, but he'll likely be a first-rounder when he declares. In a story published April 14, a general manager told ESPN's Jake Trotter he would've been the first pick in the 2025 draft.

Historically, Nike has signed deals with colleges to attract young athletes, but that strategy doesn't seem to be working. Duke and Ohio State are both Nike schools. (Smith must still wear Nike shoes in games because of contractual obligations, like Flagg did at Duke.)

Nike's reported sales fell 12 percent year-over-year in the fourth quarter, via Hilary Milnes of Vogue Business. Losing out on Flagg and Smith further shows that the brand seems to be losing its power and must find a way to convince athletes and customers to return.