The Swoosh strikes again!
In one of the more underrated storylines of the sports world, Nike has decided to match Under Armour’s endorsement offer for basketball star Kevin Durant. Although details are scarce on the Nike deal we do know that Under Armour was offering Durant between $265 and $285 MILLION, on top of a 10 percent ownership in the company’s stock. Had Nike chose not to match the proposed offer, it would have been by far the largest sponsorship deal for Under Armour and it would have certainly made them a major factor in the retail department. In 2013 alone, Durant’s signature “KD” shoes generated over $170 million in revenue last year.
There was speculation that Nike would pass on matching such a significant offer, but because Durant is one of their top brands in basketball, it turned out to be a no-brainer for them to continue their business relationship with Durant. It is unfortunate for Under Armour because they certainly pulled out all the stops to lure in one of the top stars in the game that is from the same area where Uunder Armour is headquartered at in Maryland. But as it turns out, when it comes to the retail business of athletic footwear, Nike is still the “Baddest” in the shoe business despite what KD’s new commercial says.
– JRC
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