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Under Armour adds NBA draft combine rights

Finishing second to Nike in the bidding for NBA uniform rights has not dissuaded Under Armour, which will increase its profile in pro basketball through an eight-year deal that includes title sponsorship of the NBA draft combine and presenting sponsorship of the league’s expanding youth basketball program.

The league was expected to announce the agreement this week.

The deal calls for Under Armour to supply uniforms for the combine beginning in 2018, coming off the season in which Nike takes over the on-court apparel position held by Adidas since 2006. The company also will develop a retail line of NBA draft combine fan apparel.

Stephen Curry has given UA’s footwear sales a lift this year.
As presenting sponsor of the Jr. NBA, Under Armour will support the expansion of a program that will include regional tournaments, clinics and skills challenges for children ages 6 to 14 across the United States beginning later this year, a logical fit for a brand that holds a strong position among kids and teens.

The deal also includes a jointly presented Fit mobile app, with fitness-related content and access to Under Armour’s connected fitness platform, which allows users to track, analyze and share their activities.

Financial terms were not available, but the nature of the rights and breadth of the deal suggest that Under Armour will spend exponentially more with the league than it did for the rights it held previously.

The area in which the NBA might carve out a place for Under Armour became apparent as the league and brand negotiated the larger on-court category that went to Nike in a deal announced earlier this year.

“We had a lot of great dialogue,” said Emilio Collins, NBA executive vice president, global marketing partnerships. “What we landed on is that they are leaders in health and wellness and fitness, so we started to align our discussion around opportunities to work together in that space. We’re squarely aligned with using basketball and Under Armour’s position in fitness to engage on health, wellness and fitness … a lot of which is rooted in what we do with youth.”

Under Armour has sponsored the NFL’s scouting combine since 2009 and sold combine merchandise since 2012, benefiting as interest and viewership in that event have grown. It plans to work similarly with the NBA, which hopes to expand the following for its pre-draft workout, an event that each May attracts many of the sport’s top prospects for two days of testing, drills and games.

Under Armour’s relationship with the NBA dates to 2011, but it primarily has been as a vehicle to use team and league marks in conjunction with player shoe deals. The expansion of the brand’s NBA position is yet another indication of its push beyond apparel, where it has made sizable gains, and into the sneaker market, which is driven largely by basketball and its stars.

While apparel accounts for 75 percent of Under Armour’s net revenue, footwear sales were up 40 percent in the second quarter of this year, to $154 million, energized largely by the ascendancy of Golden State Warriors guard Stephen Curry from All-Star to MVP.

“It’s all consistent with what we do as a brand,” said Adam Peake, senior vice president of global marketing for Under Armour. “We’ve done a lot of great things but we’re truly just getting started. That applies to the relationship and partnership specifically in the sport of basketball. Coming off this season, having a great asset in Steph Curry, an NBA MVP and champion, coupled with the expanded rights, we definitely feel this is a new and elevated opportunity for us to be a lot louder and bolder and prouder.”

While the combine and youth program will raise Under Armour’s basketball profile in the United States, it may get even more run from the international rights expansion included in the deal. Under its previous NBA deal, Under Armour was able to use league and team marks in every territory in the world except China. Now, it can roll out its campaigns there as well.

“A steady commitment to this sport is a high priority for us,” Peake said. “We believe it is and will be central to our brand. This is the next step in that investment, building a bigger and better platform for our brand in this space.”

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