As you know, Under Armour has come hard after sneaker deal free agent Kevin Durant this summer.
On Wednesday, Durant’s Roc Nation reps are said to have officially told Nike of a 10-year offer worth between $265-$285 million from its competitor, which reportedly includes stock options and other perks (such as a community center built in his mother Wanda Pratt’s name.)
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.
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.