Nike Dwarfs Under Armour's Mega-Offer To Kevin Durant
Ronald Martinez/Getty Images
The Baltimore-based company lost its bid for basketball star Kevin Durant over the weekend, ESPN reports.
Under Armour had reportedly offered the Oklahoma City Thunder forward between $265 million and $285 million, which would have been company's biggest endorsement deal ever.
But Nike exercised its right to match the offer and Durant decided to stay with the company. The overall value of the new deal could amount to more than $300 million, according to ESPN.
Excited and humbled to sign back with the swoosh!
- Kevin Durant (@KDTrey5) September 1, 2014
"[Durant's] one of the premier basketball players in the country," Matt Powell, a retail analyst and owner of Princeton Retail Analysis, told the The Baltimore Sun. "Having him on board would give them additional credibility in their basketball category."
The move by Under Armour came shortly after the company launched its largest-ever global women's marketing campaign. And earlier this year, the company scored the biggest equipment deal in college sports.
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But it is still considered a clear underdog. Under Armour has a market cap of just $15 billion compared to more than $68 billion for Nike.
The company has experienced massive growth over the past two decades, but its sales are still only a tiny fraction of Nike's.
When Under Armour was founded in 1996, it had $17,000 in revenue. This year, it is expected to bring in $3 billion. By comparison, Nike is expected to bring in about $28 billion this year.
BusinessInsider.com
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