It is surprising if only because it was of the most loyal Nike athletes
Posted Aug 24 2014 9:05am
Representation of Kevin Durant, Roc Nation Sports, Nike Free Tropical Twist reported Wednesday that has a deal on the table with Under Armour worth between $ 265 million and $ 285 million in ten years, sources told ESPN.com. The agreement includes Under Armour shares and other incentives, such community middle built in the name of his father, whose exact value is not known for some time.
Nike, who saw his business firm related to the Oklahoma City Thunder forward grow to about $ 175 million in retail sales last season, will now have the right to match, which is a condition of the contract in force Durant with the brand. Durant can still pick Nike if different, but can not legally pick Under Armour in the event that they do. Nike latest offering, sources said, Durant would have a base and a maximum guarantee of royalty that would be equal to not less than $ twenty million a year.
If Under Armour wins Durant services, which would be the largest sponsorship deal the company has always been committed to. The average of $ 26.5 million to $ 28.5 million means that Under Armour is dedicated very ten percent of its current annual marketing budget on it. Although Under Armour has given investors guidance could reach $ three billion in revenue this year, percent of that is nike free 5.0 basketball shoes.
Because Under Armour has a small business such basketball, the company has to be definite Durant their money upfront, than the typical offers footwear that provides over percent royalty on wholesale maximum guarantee revenues. Michael Jordan, for example, made over $ 100 million last year from Nike in much of the royalties on the sales of their brand Jordan. Potential movement Durant Under Armour, despite the temptation of more guaranteed money, it is surprising if only because it was of the most loyal Nike athletes.
Try free agency Durant Shoe Under Armour proved to be a bigger deal because of the interest expressed by the founder and CEO, Kevin Plank. Sources say Plank felt Durant might accomplish main objectives: growing your small shoe company and improve its international presence that has been lagging behind its sales growth in North The united states.
In 2007, before they played in his first NBA game, I desired to sign with Nike bad that the $ 60 million contract they signed with the Swoosh was over $ twenty million less than what Adidas had offered. However, sources say that his move to Roc Nation Jay Z last summer began to turn the tables. His new agents were interested in a stronger bargaining, which include both Under Armour and nike free run 3, who left last week.