The blowback to Nike’s decision to pull Betsy Ross American flag sneakers didn’t take long. Arizona Governor Doug Ducey on Tuesday said he’s rescinding financial incentives recently offered to the maker of athletic shoes to build a $185 million plant and bring 500 jobs to the state.
The governor, a Republican, made his move a day after the Goodyear City Council unanimously approved Nike’s plan to build its third U.S. manufacturing plant, making Nike Air shoes in the suburb of Phoenix. The city agreed to waive nearly $1 million in plan-review and permit fees and reimburse Nike another $1 million for the jobs created, according to local media reports.
As the deal was approved, Nike separately decided against releasing the Air Max 1 Quick Strike Fourth of July, “as it featured the old version of the American flag,” the company told CBS News in a statement.
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The shoe’s design included a depiction of the “Betsy Ross flag,” which features 13 red and white stripes and 13 stars to represent the original U.S. colonies. The Wall Street Journal reported Monday that former NFL star and current Nike spokesman Colin Kaepernick objected to the flag’s use during slavery. Kaepernick has not commented publicly on the report.
Ducey in a tweet called Nike’s decision a “shameful retreat,” saying “American businesses should be proud of our country’s history, not abandoning it.” Ducey, the former CEO of Cold Stone Creamery, said he’d “ordered the Arizona Commerce Authority to withdraw all financial incentive dollars under their discretion that the state was providing for the company to locate here.”
Nike did not immediately respond to requests for comment on Ducey’s announcement.
Nike also faced criticism late last year over over its controversial advertising campaign featuring Kaepernick, which ultimately had the effect of burnishing the iconic brand’s appeal to many investors. Kaepernick in 2016 started kneeling during the national anthem before NFL games to protest racial injustice.
