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To be clear again, I said it’s a low likelihood it has a negative effect. Nike courts at most, 16 or so kids a year. So only for those kids is there a possibility of it mattering.
I will say I think the Flagg example is irrelevant though because he signed a $40m deal with New Balance at 17 years old. There are no New Balance schools. In fact, I don’t even think they have a basketball shoe. Maybe they do? Point is, if he had signed with Nike, I guarantee you he would have went to a Nike school.
New Balance does sell basketball shoes. They've made a pretty significant investment starting with Kawhi Leonard. I believe you are correct that they don't have any apparel deals with schools, at least not any big ones.
Correction: Boston College has a deal with New Balance