Ja'Marr Chase's departure for Kevin Hart-invested brand could signal Nike is losing its influence

This is another huge loss for Nike

Chase is the latest athlete or team to leave the iconic brand. Penn State athletic director Patrick Kraft confirmed the program would leave Nike for Adidas on Wednesday, ending a 32-year partnership. 

Chase is likely leaving Nike to have a bigger role with Fabletics, which will probably make him one of its faces.

Nike's profile remains bigger than that of Fabletics, but Chase's departure could still sting for the corporation. The 25-year-old wide receiver is coming off a career year, where he won the receiving triple crown, leading the league in receptions, receiving yards and touchdown catches during the regular season. 

In 17 games last season, the LSU product finished with 127 receptions for 1,708 yards and 17 touchdown catches. 

Losing a player of Chase's stature could send a message about Nike: It's no longer cool. That stigma could make it harder for the brand to attract younger audiences. Perhaps that's why 19-year-old Ohio State WR Jeremiah Smith signed an NIL (name, image and likeness) deal with Adidas in July.

How could this impact Nike? 

If Nike can't connect with younger customers, it can't sell shoes, clothes and other fashion items. If it can't do that, it can't make money, which spells even more bad news for the slumping sportswear giant. 

On Aug. 28, CNBC's Gabrielle Fonrouge reported Nike is expected to lay off 1 percent of its corporate staff in another company restructure. Under former CEO John Donahoe, the company divided its business by sport rather than men's, women's, and kids'. That may have been a mistake. 

"Some critics say that adjustment was among the reasons that Nike's innovation pipeline fell apart as the company focused on lifestyle products geared to a wide range of consumers, instead of being directed at athletes," wrote Fonrouge. 

It seems Nike should start directing its products at athletes like Chase. Perhaps that'll stop them from flocking to the competition.