Mere hours after news broke of Nike’s plans to build a major manufacturing facility in Goodyear, Arizona — a move that is expected to bring 505 full-time jobs to the region — State Governor Doug Ducey has ordered to withdraw the company’s tax incentives around the proposal, stemming from the recent Independence Day-themed sneaker controversy. After Nike axed its plans to release a pair of Air Max 1 shoes featuring an embroidered “Betsy Ross” flag, Ducey shared a series of Tweets this morning to express his “disappointment” at what he considers a “terrible decision.”

“I am embarrassed for Nike…Instead of celebrating American history the week of our nation’s independence, Nike has apparently decided that Betsy Ross is unworthy, and has bowed to the current onslaught of political correctness and historical revisionism,” said Ducey.

“It is a shameful retreat for the company. American businesses should be proud of our country’s history, not abandoning it,” he added.

The Republican representative goes on to state that he has ordered the Arizona Commerce Authority to “withdraw all financial incentive dollars” that the state had planned in support of the new factory, an agreement between the City Council and Nike’s Air Manufacturing Innovation facility — which creates its Nike Air units — that had just been approved yesterday. Nike was slated to invest at least $184.5 million USD into the project, with the city of Goodyear agreeing to reimburse nearly $1 million USD across various fees and up to $1.02 million USD based on meeting the qualifying job employment terms.

According to The Business Journals, a spokeswoman for the ACA has confirmed that based on Ducey’s request, the organization will rescind a $1 million USD discretionary grant that was set to be doled out to Nike. However, this does not impact the region-specific deal between Nike and the city of Goodyear.

Nike’s Goodyear plant, if constructed, will be the company’s third Air Sole manufacturing location in the country. There has been no official comment released from Nike at this time.


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