Description: You may have heard of customers lining up to purchase a new pair of high end running shoes. But have you ever thought about people who buy, sell and collect sneakers as works of art? One Canadian collector reportedly paid in excess of $1 million dollars to Sotheby’s for 99 pairs of classic running shoes. Then he topped that off by paying approximately $600,000 for a rare set of shoes. One problem with collecting sneakers though is that these assets will deteriorate over time, perhaps crumbling to a dusty pile of waste.
Date: October 26, 2019
1) Have you ever heard about sneaker collecting? What do you think of sneakers as a work of art?
2) How much would you be willing to pay to visit Sneakertopia?
3) On page 317 of Wiley’s Financial Accounting: Tools for Business Decision-Making is a section on valuing inventory at lower of cost or net realizable value. What would be some of the challenges in applying this rule to an inventory of sneaker art?