Nationals RF Bryce Harper has signed a 10-year extension with Under Armour that is believed to be the "largest endorsement deal in history for a baseball player," according to a source cited by Darren Rovell of ESPN.com. Financial terms of the deal were unavailable, but UA, which has had Harper as an endorser for five years, will "begin selling Harper's first signature cleat, the Under Armour Harper One, in July." The company previously "sold shirts with a phrase Harper filed to trademark -- 'That's A Clown Question, Bro.'" However, Harper "abandoned his pursuit" of that trademark in '14 (ESPN.com, 5/3). In DC, James Wagner noted MLBers "don’t historically command the endorsement dollars attached to golfers, or tennis or basketball players." However, Harper "believes in bringing baseball to the forefront of attention and fashion." Astros SS Carlos Correa in February "signed a five-year deal with adidas that, according to reports, was 'record-setting.'" But a source said that Harper's deal with UA "surpasses that one." In addition to UA, Harper endorses Gatorade and New Era, among others (WASHINGTON POST, 5/4). In Baltimore, Jeff Barker notes UA "has sought to be proactive with its young stars, signing them to new contracts to keep them in the fold." Warriors G Stephen Curry "is on his second" UA contract, and so is 22-year-old golfer Jordan Spieth (Baltimore SUN, 5/4). CNBC's Joe Kernan noted UA's three marquee endorsers and said, "Phil Knight better get going." CNBC's Becky Quick noted the Nike co-Founder & Chair is retiring next month and said, "It's not Phil Knight's problem anymore." Kernan: "I think he still knows what goes on" ("Squawk Box," CNBC, 5/4).
THE FUTURE IS BRIGHT: UA in addition to Harper and Curry also sponsors Panthers QB Cam Newton, and ESPN Radio’s Mike Greenberg said, “Not only are they the big marketable stars in their sports, but they are also at the beginning of their careers. You’re going to have Steph for another eight years, you’re going to have Bryce Harper for another 12 to 15 years, you’re going to have Cam for another eight to 10 years. What can you say? They’ve hit it out of the park." Greenberg said Harper has become the "spokesperson for an entire generation of young baseball players." UA's deal with Curry put them into the NBA shoe market "in a huge way." Greenberg: "Under Armour had not really gotten into basketball shoes, which is clearly such an enormously valuable piece of the athletic apparel market. Now it has gone from where all of the kids wanted the LeBrons to where all of the kids want the Stephs. ... Look what Jordan has meant to Nike, and I am not suggesting Steph is going to become that, but if he gets even some tiny percentage of it, we are talking billions and billions." ESPN Radio's Mike Golic said, "The rise of Under Armour has been incredible" (“Mike & Mike,” ESPN Radio, 5/4).
PART OF A GROWTH PATTERN: CNBC's Pete Najarian said UA has “done a great job of ... giving themselves the global footprint they needed." Najarian: "They get that through basketball, they get through golf and obviously in the U.S., they do a great job with the sponsorship they have with Tom Brady and some of the great athletes in the NFL as well.” Najarian said UA stock is a "high multiple, but their growth is just as high and that’s been very impressive.” The company is “getting themselves placed better and better into college sports as well,” having recently signed a 10-year, $86M deal with Cal. Najarian: “They're getting even bigger” (“Fast Money,” CNBC, 5/3).
