The Swoosh had to shell out a ton of money to keep Kevin Durant as an endorser, thanks to a massive offer from Under Armour.
UA’s chief executive Kevin Plank admits that he’s very pleased to have made Nike’s bean counters sweat a bit for KD’s sneaker business. Per Bloomberg News:
With Durant’s previous contract with Nike set to expire, Under Armour made an offer that topped a $200 million proposal from Nike, Plank said. The sportswear giant then countered with a $350 million deal, Plank said.
“Do I take pleasure in that they paid $150 million more than they planned on paying?” Plank said. “Absolutely.”
The Oklahoma City Thunder forward and reigning NBA Most Valuable Player re-signed as a Nike endorser with a contract worth $300 million over 10 years, according to a person familiar with the negotiations. Including the retirement package and other elements, the deal could be worth $350 million over 20 years, the person said. [...] Nike, the world’s largest sporting-goods maker, hasn’t been challenged on many endorsement deals enabling it to pay below market rates, Plank said. Under Armour, buoyed by robust sales growth, is now willing to spend more on marketing and go after any team, league or athlete, he said.