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SBD/August 22, 2014/Marketing and Sponsorship
Under Armour Looks To Tap Into Nike's Basketball Marketplace With Proposed KD Deal
Published August 22, 2014
WORTH THE MONEY: ESPN's Tony Kornheiser said it is "hard to say that somebody is worth $285 million over 10 years," but Durant "can be not only worth the money, he could be worth more than that." Kornheiser: "Under Armour is not in the shoe business right now. They've got nothing. Nike wasn't in the shoe business really until Michael Jordan came in. He's worth $5 billion. They weren't in the golf business at all until Tiger Woods became their golf guy and every club they sold, every shirt they sold, everything they sold was Tiger Woods. Kevin Durant (can do) that for Under Armour, kids like him" ("PTI," ESPN, 8/21). ESPN's Michael Smith said UA needs Durant, as it "becomes a credibility issue" with consumers. Nike is known for its "basketball shoe and Under Armour mostly known for the football stuff" ("Numbers Never Lie," ESPN2, 8/21). FS1's Mike Hill said UA is a "big time endorser, but Nike is always right now going to be the king” (“America’s Pregame,” FS1, 8/21).
CONFLICTING INTERESTS? ESPN's J.A. Adande said one interesting aspect of the proposed UA-Durant deal is what it means "in terms of who is the primary employer of these people." Adande: "If the shoe companies are going to pay more than the league will allow the teams to pay, that brings a lot of things into question, including international competition. Do you worry about your asset? Is it really right for a team to say, 'We don't want our assets being put at risk in an international competition,' when they're now no longer the primary employer. Maybe the shoe company wants its guy out there promoting the brand internationally. So there's a whole range of ramifications that we can see when this type of money is being discussed" ("Around The Horn," ESPN, 8/21).