I am not a lawyer, but this would certainly come on product liability, not ordinary negligence. The bar is often much lower. You allude to that by comparing their manufacturing, so maybe you're already thinking about it. That area of the law can get quite complicated, and from what I've read there is a contract between Nike and the University with it's own terms, as well as between the athlete and the University. I'm sure it would be an epic showdown in court, which it would never get to because Nike has too much at stake to let it drag on. The fact that these shoes are often produced in horrific conditions in poor countries with extraordinarily low worker protections (i.e. none at all) with terrible environmental conditions as well, simply makes it a certainty that this is handled as quietly as possible under the circumstances. Nike is a marketing company, and handling public relations is their strong suit.
My best guess:
1. They offer him a contract way in excess of what they would normally give a top draft pick, he takes it and says great things about Nike
2. Business as usual.
3. Shoes will continue to fail occasionally, and there will be plenty of frivolous lawsuits.
4. People will continue to act like people do, until the robots and AI take over, consolidating power in the hands of a few who control them.
5. Step 4 will make shoes irrelevant, as the remaining oligarchs swear off shoes as something for mere commoners. They will prefer to wear soft slippers, and have the robots roll out portable carpets in front of them where-ever they walk.
I have more, but you'd probably think I was crazy....
