NBA

Kevin Durant Huge Offer From Under Armor

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Kevin DurantOklahoma City Thunder superstar swingman has received a huge offer from Under Armor, which Durant’s representation, Roc Nation Sports, has told Nike is worth somewhere between $265-$285 million over 10 years.

The Under Armor deal also includes stock and other incentives for the brand, including the construction of a community center built in Durant’s mother’s name.

Nike has a right stipulated in the current contract with Durant that they can match the deal offered by Under Armor. If they do decide to match the deal, Durant must legally resign with Nike, but if Nike fails to match Under Armor’s offer the superstar is free to sign with the Under Armor, or Nike if he so chooses.

The last offer Nike made would have provided Durant with at least $20 million in base and royalty pay guaranteed.

If Under Armor does in fact get the services of Durant, the deal that averages at least $26.5 million a year to Durant represents 10% of the companies current marketing budget. Under Armor does not have the hold in the basketball industry as competitor Nike does, so Under Armor has to guarantee the money upfront, rather than basing it off shoe sales like Nike does.

Last season, Nike paid former Chicago Bull’s great and current owner of the Charlotte Hornets, Michael Jordan, $100 million in royalties from sales of the Jordan brand basketball shoes.

If Durant signs with Under Armor, it will also be somewhat surprising as Durant has been a relatively loyal athlete for Nike, signing a $60 million deal with them in 2007, before he ever took an NBA court, that was $20 million less than an offer Durant received from Adidas.

Another appeal of Under Armor is that they are based in Baltimore, 26 miles from Durant’s childhood home of Seat Pleasant, and that the company has a strong track record of spending money in the community.

 

About Grant Hamersma

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