The Best One Yet - 💨 “Just did it” – Nike’s crime of fashion. Volkswagen’s southern union. Therapy’s venture capital bet.

Episode Date: April 23, 2024

Nike’s stock has fallen by nearly half since 2021 and we found 3 reasons why — One is that Nike failed to learn a valuable lesson from The Beatles.Volkswagen’s factory in Chattanooga Tennessee just became the first non-Detroit car company to form a workers union — But this story isn’t just about VW, it’s about the American South.And in the last two weeks, 2 online therapy companies have raised over $100M — Because Venture Capital firms are finally going to therapy.Plus, email us at [e-mail] with your Best Facts Yet and Shoutouts so that we can bring you on stage at our NYC Live Show!$NKE $ONON $DECK $VWAGYSubscribe to the best newsletter yet: tboypod.com/newsletterWant merch, a shoutout, or got TheBestFactYet? Go to: www.tboypod.comFollow The Best One Yet on Instagram, Twitter, and Tiktok: @tboypodAnd now watch us on YouTube Hosted on Acast. See acast.com/privacy for more information.

This is Nick. This is Jack. It's Tuesday, T-Boy, Tuesday, April 23rd. And today's pod is the best one yet. It's a T-Boy. It's a T-Boy. It's the top three pop business news stories you need to know today. Oh, here we go.

Are you feeling good? Are you feeling surprised? Dude, you know, I flew with River. Yeah, I know. So I was arriving at 11 o'clock in the River. I needed to drop her off at the hotel. I know. That's why I got there early, man.

Lo and behold, Nick has secured for me a room upgrade at the hotel without even telling me. No, here's what I did. I said, is early checking available for my buddy Jack? And they said no. And then I said, are there any upgrades available for my buddy Jack? And they said, yes, for a cost. And I said, I'd rather not pay a cost.

And they said, okay, you can have it for free. They just let us have the upgrade. What's the takeaway here, Jack? The takeaway is Nick is a genius of always just asking and always just checking. And people seem to just give him things for free. Maybe it's your smile. Maybe it's your hair. Yet he's always asked for the upgrade.

there's a high chance you're just going to get it. They have rooms. They're empty. They're just sitting there. Nick simply asks for them. And that's why I asked. So tonight, I'm going to snuggle with river in a king-sized bed instead of a queen-sized bed with a river view instead of a city view. Jack, it was my pleasure. Yet he's always asked for the upgrade.

Jack, what are our three stories for today's show? For our first story, Nike stock has fallen 25% in the past year. Hoka and non-running are stealing Nike sales. Because Nike failed to learn a valuable lesson from the Beatles. For our second story, Volkswagen's factory in Tennessee just did something no one expected. They unionized. They unionized, but this story isn't just about VW. This story is about the American South.

And our third and final story. In the past two weeks, two therapy companies have raised over $100 million. Because venture capital firms are finally going to therapy. VC firms will literally do anything. Yeah. not to go to therapy. You could say that again. But yet is, before we hit that wonderful mix of stories.

Fantastic mix for a T-Boy Tuesday. Somebody grabbed the door. Oh, Hailing Taxi! We just touched down in New York City for our live show. Yet is the first ever T-boy pod live from the Big Apple, baby. This is quite possibly the biggest night of our professional careers tomorrow. That's a well put, Jack. We got stuck in some Midtown traffic, but we're not going to let that stop us from getting it on time.

We are so excited to be in front of 400 fantastic looking. Yetis. And 400 escreaming besties. Now, for those of you who can't make it, we should fill you in. There's one special part of our live show format. Audience engagement. Jake and I, we love our listeners, but we rarely get to see our listeners because this is a podcast. So we try to make up for it when we're live.

Yeah. On Wednesday night, we are going to be bringing some members of the audience on stage with us. We have besties come on stage to share the best fact yet live into the microphone. And we have yet he's come on stage to whip up the takeaways live on the microphone. So if you're coming to the New York City Live show tomorrow night, we need you to talk now to us. We want to hear from you right now these two things. Do you have a best fact yet? Do you have a shoutout for the show?

Do you really want to take my spot to whip up the takeaways with Nick tomorrow night? Is it physically possible? We got to test the limits, Jack? If you do, email us right now at Nick and Jack at T-boypod.com so we can get you on the stage. Jack and I will call you out during the show so you can present the best fact live. So this T-Boy Tuesday, we want to hear from our New York Yetis from Washington Heights to the Lower East Side. From the Gowanus Canal to Graze Papaya. What's the best fact yet about New York?

Email us at Nick and Jack at T-boypod.com. We are pumped for New York City live T-Boy. We've been waiting our whole lives for this. Jack is less than 24 hours away. We've got to get ready, man. Let's hit our three store. Let's go, baby. before this song. Two boys from the Northeast met in the dorm. They had an idea that caused a cultural storm.

It's the best one. 50%. That's a fat tip. Tea Boy City on your at list. If you know, you know, because we're ready to go. We can't wait no more, so just start the show. First, a quick word from our sponsor. For our first story, Nike's stock just pulled a hammy. And Nike is having its worst year in decades.

We're going to look at the mistakes Nike has made lately, including a mistake that involves the Beatles. All right, Jack, let's jump it to the wardroves, man. What are you noticing about workout shoes at your local workout class? You know, I've been doing an orange theory recently. I know, I know, I know. Nobody is wearing Nikes. Nobody.

Jack, I am wearing on running cloud monsters right now. I'm only seeing Hokas, Brooks, and on running. No Nikes. Yeties call the trainer. Nike stock is down 26% in the last year. Nike stock is down nearly half since it's 2021 high. Jack is like a lot. Our coaches used to say in college, take to Advil an ice bath and grab a theragon.

Does anyone have a therogun? Yeah, these Nike stock looks less 98 bulls, more 99 bulls. Yeah, it's less Steve Kerr and more Brian Scalabrini. If you know, you know. Yeah, we should sprinkle on some context. Yeah. Nike is still a $140 billion company. Jack, can you sprinkle on maybe a little more context?

That's tripled the value of Adidas. Four times as valuable as Lulu Lemon, 30 times more valuable than Boston-based New Balance. So Nike is still number one, not too. shabby. But in Nick and my careers, we've never seen Nike so vulnerable as it is today. Which leads to the big question, Jack. Who is responsible for this Nike self-injury man? Is that the big question? I think our whole lives have been leading up to this. There's no eye in team, but Wall Street Journal blamed one person, the CEO, John Donahue. Yeah, John Donahue, the CEO, he actually blames remote work. He said Nike has been innovative

since everyone's zooming in on the shoe sole designs. You probably saw headlines. You probably saw headlines. about that last week. But Wall Street Journal reporting this week suggests that that was just an excuse. Yeties, here's what Jack and I found fascinating about this story. Nike, it appears, has pulled off the opposite of a hat trick. According to this Wall Street Journal article, Nike made three big mistakes, three big miscalculations that put its stock on the bench. The first mistake made by Nike is strategic. Nike bet too much on e-commerce. Nike stopped selling wholesale to third-party stores like Foot Locker and Mason.

and instead focused on Nike.com and Nike's own stores. But after the pandemic, we all returned to our old shopping habits of going to those third-party stores that Nike had left. So, Nike's had to go back to those stores now and admit that their e-commerce bet was a mistake. Footlockers like, yeah, I thought you'd come back. Which leads to Nike's second mistake, which is a crime of fashion. Nike went too nostalgic. Nike's Air Jordan and Air Force one brand.

are huge successes, but Nike started making a little too many of them. Nike made too many Air Jordans and too many Air Force Ones, diluting those brands and leaving customers wanting something fresh. Yeah, so like sneakerheads, they felt betrayed once the rare shoes that they loved were like suddenly everywhere. Like, Grandma, really? The Air Force Ones? Collectible Nikes on like those secondary markets, they've plummeted in price.

Honestly, Jack, Nike should have learned a lesson from great musicians out there. Like, you got to play the old stuff. We got to play some new stuff too to keep it fresh. Everyone loves the Beatles' Hard Days Night. Great album. But you need to evolve and eventually show us Sergeant Pepper's Lonely Heart Club. We can't just hear Hard Day's Night for the next 10 years. But Nike's biggest mistake has nothing to do with the Beatles.

No yet. He's, Nike's biggest mistake was forgetting a core principle of their own founder. Phil Knight. So Jack, since we both read Phil Knight's autobiography. I'm only on the second chapter. No spoilers. You read the whole thing. Nike goes public.

So, Jack, what's the takeaway for our buddies over at Nike? Nike forgot about trickle-down athletics. Trickle-down athletics. Yeah, these film night's top philosophy when he built Nike was a marketing idea. And here it is. Don't market to everyone. Instead, focus on just marketing to top athletes and the casual consumer will follow. Yeah, the idea is that if they target hardcore athletes, then they'll be aspirational to everyone.

That's why you associate Nike with Michael Jordan, Tiger, Woods and LeBron James. Right. Not an everyday runner. Yeah, that's why Nike endorses like MVP's and doesn't sponsor your local 5K jogging race. Nike is supposed to be equivalent to elite athletics. But, besties, if you ask Nike employees lately, they say that Nike forgot that top principle.

They say that Nike is no longer the leader in high performance athletic gear that the top athletes want. Who filled the void? Hoka on and A6. Their sales are up because consumers now think they're very. the top running shoes. Nike's greatest mistake may be forgetting that top principle from Phil Knight. It's what

Jack and I call trickle down marketing. Trickle down athletics. For our second story, for the first time ever, Volkswagen just joined an American union. But this isn't really a car story. This is a story about the American

South. All right, Jack. When I was younger, my family did a trip when I was like seven to Chattanooga, Tennessee. Really? My favorite trip we ever did, Chattanooga, What? Chattanooga. There's so many trains. You just love it.

Chattanooga. I remember, I told my parents Chattanooga was like Disney World without the characters. Wait, I don't get it. Why are there trains in Chattanooga? It's a long story, which we don't have time for. But yet he's Chattanooga, Tennessee

is also home to 5,500 Volkswagen employees. In Chattanooga, they build three Volkswagen SUVs, including the all-electric ID-4 that I drive. And you kind of okay like it. I drive it when it works. But here's the news, Yeti's workers at that Volkswagen plant just voted to join the United Auto Workers Union. America's oldest auto union now represents employees from Volkswagen. This union has over 1 million active and retired workers who, if you have an American car, they probably made.

Correct. Yep, the UAW boasts on their website that 63 cars are made by their unionized labor. But here's the shocker to popular. Pause the pod. For the first time ever, a non-American car will now be made by American Union. Volkswagen. A European car company is made by an American union. This is like when the French discovered Napa wine for the first time. No, I am.

This is birthday good. Good analogy. I should point out, my ID4 is a great car. It's just got a glitchy app. That's my only concern. But Jack, in order for us to really tell this store, can we sprinkle on the key context? This is wild. Yes.

But the American car industry is. is divided geographically along the Mason-Dixon line. That's right, Yetis. The American car industry is literally divided between North and South two different car manufacturing cultures. The North is where the Detroit car companies are based. And they're all unionized. The South is where the foreign car companies and Tesla are based.

And they're all non-unionized. Yeties, a big reason that BMW, Hyundai, and Tesla picked South Carolina, Alabama, and Texas for their US factories. is because those southern states are all anti-union states. Car companies love anti-union states because it helps them keep the cost of their labor down. Now let's look at the map here, Yeti's southern politics have historically favored business and profits over labor and wages. The South wants to attract investment from these foreign car companies, and they don't want unions to get in the way. But after 89 years of failing in the South, the United Auto Workers Union just won a southern election for the first time ever.

And it was an overwhelming victory. 73% of workers voted to join the union. As you know what you're thinking. Let's pump the brakes for a second. Why exactly was there suddenly this huge union win with a foreign car company in the south of the United States? If you listen to this pod, you know why. Yeah. Last year was the year of the strike.

The UAW earned huge pay increases for the workers of General Motors, Ford, and Chrysler. So Volkswagen workers are like, yeah, I want in. Oh, yeah. And now UAW leadership, they feel like they feel like they're. They just signed Vin Diesel. Yeah, because they're hoping there are a lot of sequels coming, right? With like all the other states. They're going to go to every foreign car company in the South and try to unionize the labor.

They're basically driving across I-5? 15. 96. They're driving across the South and they're trying to pick up more unions now. Machinau. So, Jack, what's the takeaway for all our buddies in the United States? Every region of the world has a different dialect of labor. Yet, every part of the world speaks a different dialect.

And when it comes to labor friendliness, every region of the world has a different dialect, too. Yeah, like in China, workers don't have much power to steer the companies that they work for. In Europe, workers have a lot of power. Most European countries reserve a seat on the board for a representative of the labor. And even in America, we've now discovered that there's a different approach to unions between the north and the south. And overall, we're somewhere between China and Europe. don't get a board seat in America, but all workers have the right to unionize. And that's our surprise takeaway from this Volkswagen Labor news.

Labor is a lot like a language. When it comes to the power of labor, each region of the world speaks a different dialect. Now a quick word from our sponsor. For our third and final story, the latest venture capital-backed industry, get this, it's therapy. Two chairs shows the power of applying the dating app model to therapy. Now, yet he's funny thing. When Jack and I were researching this story,

Jack, what happens when you Google two chairs online? You see a bunch of ads for West Elm. Yeah, so here's what you're trying to sell you two chairs. Instead, yet he's Google Two Chairs Therapy and then you will see the company that we're talking about right now. It's a venture-backed chain of therapy offices.

Two-chairs is kind of like one medical, but for psychiatrists. Two chairs. One for you. One for the therapist. But they also have an app so you can Therapize in person or online. So two chairs is,

more like Goodwill Hunt it. Right. But instead of hugging Robin Williams, you hug an algorithm. It's not your fault. But here's the news, Yetis. Two chairs just raised $72 million in venture capital money. Plus, another therapy startup raised $88 million the same month. I'm sorry, Jack.

So let's just add this up for a second. $150 million in fresh cash has been raised by venture capital firms for therapy apps? The biggest thing to happen to therapy since Freud. I'm kind of so shocked by this. I feel like I need to talk to my therapist about it. I'm having an existential crisis about it. Did you say VCs don't go to therapy? Yeah.

Venture capitalists now are finally going to therapy. By writing a jack. So, Yeti's what Jack and I found shocking about this. It's the business model of these therapy startups. Because this ain't no gig app. This isn't Uber for shrinks. No, no, no, no. Yeties, the biggest brands in therapy are Talkspace and BetterHelp.

Those are online-only therapy apps that have been searching lately. But two chairs, their differentiator is in-person meetings. That was the shocker. They own physical offices where you can meet your therapist. It's like a whole building filled with therapists and patients. A bunch of buildings, actually. Also, there's another differentiator about these guys. Two Chairs doesn't contract therapists like a gig platform.

They hire therapists full-time. Right. So Two Chairs has a growing roster of therapists who it trains with their unique therapy approach. This is not a tech-a-fied thing that we saw like three or four years ago that was so popular. It's more like the private practice therapist office that you've like heard of. But Bessie's Jack and I should point out, there is a problem with this particular type of business model for two chairs therapy. Offering in-person therapy with full-time employees is not fast to scale. And that is why they're only in three states right now, California, Florida, and Washington.

And that is exactly why they're raising $72 million to open new offices in new states. And our bet is that New York is next. And Austin's after that. So, Jack, what's the takeaway for all our bodies in the venture-backed therapy industry? Dating app algorithms are in an open relationship. Yet he's an interesting thing, Jack, and I noticed about this therapy app. The first appointment you make is a 45-minute appointment to match you. Two chairs will ask you a bunch of questions about your situation and plug them into an algorithm,

which matches you with one of their therapists. And they claim that their matching algorithm is what leads to a long, long-term therapy relationship. And that got us realizing what this therapy company really is at its core. Yet what this therapy company really is, is a dating app. They're just focusing on matching just like any dating app, right, Jack? Because like Hinge and Bumble, two chairs knows that the match is the part that could lead to a long-term relationship.

And that's where Jack and I got inside. This shows that the dating app algorithm has way more potential than just dating. The dating app algorithm isn't an open relationship. Or at least it should. Jack, can you whip up the takeaways for us for T-Boy Tuesday? Nike stock is downed by nearly half as employees saying Nike products have lost their technical edge. It looks like Nike has forgotten its core principle. Trickle-down athletics.

For our second story, for the first time in 89 years, the UAW won an election in the south. In the south. From VW workers. Because when it comes to labor, every region of the world has a different dialect. And our third and final story with two chairs. They've raised over $100 million in VC funding to become the one medical of psychiatry. And they're proof that the dating algorithm is in an open relationship. But yeties, this pod's not over yet.

Here's what else you need to know today. First, we've got a fashion update. On Monday, the FTC sued to block a $9 billion luxury mega-merger. Capri, which owns Versace, Jimmy 2 and Michael Coors, was going to acquire tapestry, which owns coach Kate Spade and Stuart Weitzman. But now, hold the dresses. That deal might be off.

It may not be happening. The Biden administration is trying to block just about every big corporate merger right now. And second, the exciting high-speed railway that's going to connect Los Angeles to Las Vegas just broke ground yesterday. It's exciting. It's a $12 billion project.

The one that's done, you can take a train from L.A. to Las Vegas in two hours, which is half the time of driving. And it's scheduled to be completed just in time for the 2020. Blackjack Championship. I'm sorry, the Olympics. The Olympics.

The only one who's not happy about that high-speed rail project is Chattanooga, apparently. Who's losing their Choo-Train monopoly. I'll tell you, it's a lot of fun to visit as a kid, Jack.

And finally, he got an update on Pandaplomacy. Yeties, China only gives out its pandas if they're on good diplomatic terms with you. We share that with you on the pot. Last year, in a negative development for U.S.-China relations,

China announced they were taking back all of the pandas that they had lent out to America. But we come bearing good news. Another American zoo is about to get giant pandas again. Where in the United States, where these pandas be going? Yeah, San Francisco. We're getting a giant Chinese panda for the first time in 40 years, Jack.

It's very exciting. I mean, the next time you're in SF, we should be potting next to the panda. It's such a positive development. No, it is positive. Literally. Oh, positive. It's very positive. It's extremely positive.

Now, time for the best fact yet. This one sent in by our buddy, the legendary Terrace Melanchenko from lovely Austin, Texas. All right. You know how they call it Bluetooth? Why is it called Bluetooth? Well, the technology that connects through AirPods was invented in 1996 by three particular companies. Erickson, Nokia, and Intel.

And since Bluetooth connected different devices, two of the Scandinavian companies involved in creating it wanted to honor a famous connector in Scandinavian history. And who was that? famous connector? Well, it was King Harold Gormson, who united Denmark and Norway in the great year 958 AD. I still don't know why it's called Bluetooth now. But it turns out that that king didn't have the best dental situation. He had a dead tooth. So they called him Bluetooth. The tooth was that dead. So yeah, the next time you're trying to connect sign of Bluetooth and it won't, so you're getting annoyed, you can get angry at King Harold Gormson of Scandinavia. It's a convoluted origin story.

related to Scandinavia, the year 958, and your AirPods not connected. If your sono speaker isn't playing right now, it's because of a Viking with a dead tooth. Yiddies, you look fantastic. We cannot wait to see you at the T-Boy Live Show so, so soon. Like I said, Nick and I are treating this like the biggest night of our professional figures. Honestly, we are. We're already doing the hair and makeup. But if you want to come on stage for our live show and you're in New York City, we want to hear from you.

Send us an email at Nick and Jack at T-Boypod.com so that we know you want to come on stage and we know what your best fact is. Send us the best fact yet or a shout-out. Jack and I will do our best to get you up there. In the meantime, have a fantastic day. We'll see tomorrow. Can't wait. And before we go, Passover began last night and we'll continue on for another week until next Tuesday at sundown. Jewish Yetis who are celebrating, we're celebrating with you. Yes, we are. And a happy birthday to Yeti Jake Dwyer, the Crypto King of Venture. Who holds too many Dartmouth Lacks records for the public record to handle.

Don't fact check us on that one. And Diane and Robert Bince are a couple of Yetis in Perlin, Texas, who are celebrating a second anniversary and a baby on the way. Congratulations. And happy birthday to Aria Vasquez, who's turning nine in Irvine, California. Listening since she was four. And Jordan Vanderhiden turned 28 in Dallas, celebrating, though, with some pinos up in Napa.

Happy birthday to Jessica Sanchez in Oak Park, Michigan, who's celebrating her first birthday as a mama. And congratulations to Yeti Priya Gupta in Little Rock, Arkansas, who just got promoted to Professor of Neuroanesthesiology. He's out. We can do your work, surgeons. This is Jack. I own stock of Bumble and Ford.