KingRevolver Posted August 20, 2014 Report Share Posted August 20, 2014 ESPN: Kevin Durant's representation Roc Nation Sports informed Nike on Wednesday that he has a deal on the table with Under Armour worth between $265 million and $285 million over 10 years, sources told ESPN.com. The deal includes Under Armour stock and other incentives, such a community center built in his mother's name, whose exact worth will not be known for some time. Nike, which saw its signature business related to the Oklahoma City Thunder forward grow to roughly $175 million at retail last season, will have the right to match, which is a condition of Durant's current contract with the brand. Durant can still choose Nike if it doesn't match but can't legally choose Under Armour if Nike does. Kevin Durant can't legally choose Under Armour if Nike decides to match UA's 10-year deal worth between $265 million and $285 million for the star forward. Nike's last offer, sources said, would have given Durant a base and a minimum royalty guarantee that would equal no less than $20 million a year. If Under Armour wins the services of Durant, it would be the largest sponsorship deal the company has ever committed to. The average of $26.5 million to $28.5 million means that Under Armour would be devoting nearly 10 percent of its current annual marketing budget on him. Although Under Armour has given investors guidance that it might hit $3 billion in revenues this year, only about 1 percent of that is from basketball shoes. Because Under Armour has such a small basketball business, the company has to guarantee Durant his money up front, instead of the typical shoe deals that offer a minimum guarantee plus up to 5 percent royalty on the wholesale revenues. Quote Link to comment Share on other sites More sharing options...
KingRevolver Posted August 20, 2014 Author Report Share Posted August 20, 2014 Who the hell wears Under Armour basketball shoes? Quote Link to comment Share on other sites More sharing options...
Sharp Square Posted August 21, 2014 Report Share Posted August 21, 2014 about 1 percent Quote Link to comment Share on other sites More sharing options...
JTGAMBLE Posted August 21, 2014 Report Share Posted August 21, 2014 that's crazy. Quote Link to comment Share on other sites More sharing options...
WeinkeToWarrick Posted August 21, 2014 Report Share Posted August 21, 2014 Interesting part of the article is the point that Durant would be getting paid more by Under Armour than by the Thunder. If he goes with UA over Nike you really have to think there's a better chance he ends up in DC in a couple years. Quote Link to comment Share on other sites More sharing options...
Deemer Posted August 21, 2014 Report Share Posted August 21, 2014 Had a pair once. Comfortable, looked cool. However were fukking trashed after 4 months Quote Link to comment Share on other sites More sharing options...
KingRevolver Posted August 21, 2014 Author Report Share Posted August 21, 2014 I guess it pays to have Jay-Z represent you. Weinker, I hope he doesn't end up going to DC... they don't deserve a good team. Quote Link to comment Share on other sites More sharing options...
rjt Posted August 21, 2014 Report Share Posted August 21, 2014 No clue how these companies make money off these endorsement deals. Doesn't Rose make a ton from Adidas? Only soccer Non heterosexual humans wear Adidas. Quote Link to comment Share on other sites More sharing options...
Blue Posted August 21, 2014 Report Share Posted August 21, 2014 Interesting part of the article is the point that Durant would be getting paid more by Under Armour than by the Thunder. If he goes with UA over Nike you really have to think there's a better chance he ends up in DC in a couple years. If I'm not mistaken Allen inversion was being paid more from reebok than he was from the sixers for the majority of his career.. Quote Link to comment Share on other sites More sharing options...
Chickadee Posted August 21, 2014 Report Share Posted August 21, 2014 Interesting part of the article is the point that Durant would be getting paid more by Under Armour than by the Thunder. If he goes with UA over Nike you really have to think there's a better chance he ends up in DC in a couple years. That's due to the NBA CBA. It flattens the salaries whereby mid tiered players get boosted. They often get the same so called "max salary" whereby top tier guys like Lebron/Durant turn out to be severely underpaid for the amount of money they bring to teams. The new CBA after the 2016 season will likely holds provision to pay out supermax deals to these guys (which is the reason most of the contracts being signed this offseason are for 2 years). Quote Link to comment Share on other sites More sharing options...
wrigley Posted August 21, 2014 Report Share Posted August 21, 2014 I dont thik Nike is sweating to much Quote Link to comment Share on other sites More sharing options...
KingRevolver Posted August 21, 2014 Author Report Share Posted August 21, 2014 Nike will probably pass on it and laugh @ UA when they slip into financial trouble. Quote Link to comment Share on other sites More sharing options...
KingRevolver Posted August 31, 2014 Author Report Share Posted August 31, 2014 It looks like Nike will be matching UA's offer. They couldn't let Kevin Durant go. http://espn.go.com/nba/story/_/id/11443079/kevin-durant-oklahoma-city-thunder-stays-nike-shoe-company-matches-armour-offer Quote Link to comment Share on other sites More sharing options...
Chickadee Posted August 31, 2014 Report Share Posted August 31, 2014 It looks like Nike will be matching UA's offer. They couldn't let Kevin Durant go. http://espn.go.com/nba/story/_/id/11443079/kevin-durant-oklahoma-city-thunder-stays-nike-shoe-company-matches-armour-offer It's not that they couldn't let him go. They are very scared of UA entering the sneaker market. Quote Link to comment Share on other sites More sharing options...
Timely Hitting Posted August 31, 2014 Report Share Posted August 31, 2014 You got to start somewhere; this would have been a nice get for the company, but I feel that Durant would have felt a lot more pressure from UA to leave OKC in a few years if he signed this deal. With Nike matching the offer, he can stay in small town USA and not worry about building a brand. I think it would have been an interesting signing for UA though, and one that could have actually worked out. Quote Link to comment Share on other sites More sharing options...
KingRevolver Posted August 31, 2014 Author Report Share Posted August 31, 2014 It's not that they couldn't let him go. They are very scared of UA entering the sneaker market. True... Quote Link to comment Share on other sites More sharing options...
Inkwell77 Posted August 31, 2014 Report Share Posted August 31, 2014 Adidas has the freshest tennis shoes imo. I don't really play basketball anymore, but I played tennis almost everyday this summer and the adidas I bought in May have been amazing. Quote Link to comment Share on other sites More sharing options...
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