Kevin Durant offered $265-285 million, Under Armor

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urant offered $265-285 million by Under Armour

By @SBN_Ricky on Aug 20 2014, 4:09p 1

Ronald Martinez

The proposed contract would blow Durant's deal with the Thunder out of the water.

Under Armour is making a strong push to get the NBA's reigning MVP out of his endorsement deal with Nike. Kevin Durant has been offered $265 million to $285 million over 10 years by Under Armour, according to ESPN's Darren Rovell. Nike has the option of matching Under Armour's offer, a term written into Durant's original endorsement deal with the company.

The offer to Durant would be nearly 10 percent of Under Armour's annual budget and the largest sponsorship deal the company has ever committed to. Nike reportedly made $175 million off Durant-related products last season as the 25-year-old forward won his first MVP award and led the league in scoring for the fourth time.

The average salary of $26.5 million to $28.5 million per year would dwarf Durant's maximum contract with the Thunder, where he's scheduled to make $41.2 million over the next two years before becoming an unrestricted free agent in 2016. Under Armour is based in Baltimore, just 36 miles away from Durant's hometown of Seat Pleasant, Md.

Nike's last offer to Durant would have netted him at least $20 million per year, according to Rovell. By all accounts, Durant's defection to Roc Nation Sports last year has raised the stakes for his endorsement deal.

 
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Jesus Christ

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I was thinking about buying some of their stock, no way I will do it now. Phone Post 3.0

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I don't follow basketball much, but Durant seems like a good dude. That's crazy money, but good for him.

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wow 10% of budget, why not save money and offer to a different athlete.

people are idiots if this stuff really works, buying clothing because a famous athlete supposively uses the clothing.

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dont hate it, it obviously works if a company will pay one person to endorse them.

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Faux Sho - 


A dude throwing a ball in a hoop can make 40+ million a fucking year? WOW



 



MURICA! 


More like a dude who can impact tens of millions of people in a positive manner is someone companies want as the face of their brand.

MURICA!

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DougWilson - wow 10% of budget, why not save money and offer to a different athlete.

people are idiots if this stuff really works, buying clothing because a famous athlete supposively uses the clothing.


look at lebron and nike, all the lebron shoes since the 9's have been some of the most hideous shoes ever on the face of the planet, yet they still sell a shiiiiiiiiiiiiit ton because of the name 'lebron'.

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This is like 80 years old bro.

I already have UA stock :) Phone Post 3.0

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Jhay -
DougWilson - wow 10% of budget, why not save money and offer to a different athlete.

people are idiots if this stuff really works, buying clothing because a famous athlete supposively uses the clothing.


look at lebron and nike, all the lebron shoes since the 9's have been some of the most hideous shoes ever on the face of the planet, yet they still sell a shiiiiiiiiiiiiit ton because of the name 'lebron'.

KD line brought nike $175MM last year vs $35MM the year before.

LeCon line brought $300MM.

Jordan brought $2.2B. Phone Post 3.0

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Faux Sho -


A dude throwing a ball in a hoop can make 40+ million a fucking year? WOW



 



MURICA! 

Compared to the revenue he brings to the Thunder, he's significantly underpaid. Phone Post 3.0

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This is because of ties to the DC area.  Durant is a hero here.  He grew up here, and still has super close ties to the area.  The expectation around here is Durant is going to come home to the Wizards when his contract is up.  For his part he has done nothing to deny it.  Some people think this is actually the start of him coming home.  He becomes the face of the local company, wears there gear while playing summer ball down here at Barry Farm, then eventually signs to lead the Wiz to an NBA title. 

Side note I used to ride the subway to work every morning from Suitland with a REALLY tall young black kid.  I got off before him but we would be on the first train out every morning.  Turns out it was Kevin Durant riding to high school. 

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I don't get the mindset behind this. Underarmor is already a very profitable company with plenty of super stars and professional contracts.

Though it might be a nice feather in their cap to have KD in their line up, the price can't possibly be worth it.

Are they really going to get 300 million more in sales BECAUSE KD is branded by them?

I would love to see a 10 year projection for them with KD under contract and without.

Now rather than sign him, take the 30 million a year and invest it over 10 years.... Which is better?

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jcblass - I don't get the mindset behind this. Underarmor is already a very profitable company with plenty of super stars and professional contracts.

Though it might be a nice feather in their cap to have KD in their line up, the price can't possibly be worth it.

Are they really going to get 300 million more in sales BECAUSE KD is branded by them?

I would love to see a 10 year projection for them with KD under contract and without.

Now rather than sign him, take the 30 million a year and invest it over 10 years.... Which is better?
Have you read nothing?

KD brought $175MM to Nike last year.

If he brought half that to UA, they'd earn enough revenue to cover the 10 year deal in 3 years.

There's also a lot of upside and potential to get much more revenue out of him. Phone Post 3.0

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Steven McTowelie - 
jcblass - I don't get the mindset behind this. Underarmor is already a very profitable company with plenty of super stars and professional contracts.

Though it might be a nice feather in their cap to have KD in their line up, the price can't possibly be worth it.

Are they really going to get 300 million more in sales BECAUSE KD is branded by them?

I would love to see a 10 year projection for them with KD under contract and without.

Now rather than sign him, take the 30 million a year and invest it over 10 years.... Which is better?
Have you read nothing?

KD brought $175MM to Nike last year.

If he brought half that to UA, they'd earn enough revenue to cover the 10 year deal in 3 years.

There's also a lot of upside and potential to get much more revenue out of him. Phone Post 3.0

How did he bring 175 million to Nike? how do you even quantify that amount. Maybe 100 of the 175 million was going to be spent on Nike anyway, because there are Nike loyalists. It would not have mattered if it was a KD shoe or a Kevin Love shoe...

Maybe instead of NIKE paying Kevin Durant, they could have paid 2 lesser known all-stars PLUS ran 4 super bowl ads, that might have made up the difference.

It all seems very hard to really figure out what the ROI is on something like this.

Is NIKE going to make 170 million LESS next year if the lose KD? I don't think so...

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jcblass -
Steven McTowelie - 
jcblass - I don't get the mindset behind this. Underarmor is already a very profitable company with plenty of super stars and professional contracts.

Though it might be a nice feather in their cap to have KD in their line up, the price can't possibly be worth it.

Are they really going to get 300 million more in sales BECAUSE KD is branded by them?

I would love to see a 10 year projection for them with KD under contract and without.

Now rather than sign him, take the 30 million a year and invest it over 10 years.... Which is better?
Have you read nothing?

KD brought $175MM to Nike last year.

If he brought half that to UA, they'd earn enough revenue to cover the 10 year deal in 3 years.

There's also a lot of upside and potential to get much more revenue out of him. Phone Post 3.0

How did he bring 175 million to Nike? how do you even quantify that amount. Maybe 100 of the 175 million was going to be spent on Nike anyway, because there are Nike loyalists. It would not have mattered if it was a KD shoe or a Kevin Love shoe...

Maybe instead of NIKE paying Kevin Durant, they could have paid 2 lesser known all-stars PLUS ran 4 super bowl ads, that might have made up the difference.

It all seems very hard to really figure out what the ROI is on something like this.

Is NIKE going to make 170 million LESS next year if the lose KD? I don't think so...

Smarter people then you have quantified it and people are more loyal to players than brands than you seem to be aware of.

Within reason that is, and Under Armour is clearly reasonable. Phone Post 3.0

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lol @ supposively Phone Post 3.0

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Nike/Jordan Brand dominates the Basketball shoe market and it's not even close. Durant is right there with Lebron right now and could surpass him in the next few years. Anyone that follows sneakers knows that signature shoes are what sell. UA can't have a signature shoe without a big time player attached to it. The Lebron, Kobe and KD lines are easy to recognize because of the names of the player attached to it. I bet most people wouldn't be able to name a UA Basketball shoe.

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Steven McTowelie - 
jcblass -
Steven McTowelie - 
jcblass - I don't get the mindset behind this. Underarmor is already a very profitable company with plenty of super stars and professional contracts.

Though it might be a nice feather in their cap to have KD in their line up, the price can't possibly be worth it.

Are they really going to get 300 million more in sales BECAUSE KD is branded by them?

I would love to see a 10 year projection for them with KD under contract and without.

Now rather than sign him, take the 30 million a year and invest it over 10 years.... Which is better?
Have you read nothing?

KD brought $175MM to Nike last year.

If he brought half that to UA, they'd earn enough revenue to cover the 10 year deal in 3 years.

There's also a lot of upside and potential to get much more revenue out of him. Phone Post 3.0

How did he bring 175 million to Nike? how do you even quantify that amount. Maybe 100 of the 175 million was going to be spent on Nike anyway, because there are Nike loyalists. It would not have mattered if it was a KD shoe or a Kevin Love shoe...

Maybe instead of NIKE paying Kevin Durant, they could have paid 2 lesser known all-stars PLUS ran 4 super bowl ads, that might have made up the difference.

It all seems very hard to really figure out what the ROI is on something like this.

Is NIKE going to make 170 million LESS next year if the lose KD? I don't think so...

Smarter people then you have quantified it and people are more loyal to players than brands than you seem to be aware of.

Within reason that is, and Under Armour is clearly reasonable. Phone Post 3.0

So you have no data to speak of? He is 100% right that it is not easy at all to quantify.

How much has Li Ning's Dwayne Wade shoe sold in the US? If under armor thinks they can monetize Durant the way Nike does they are dead wrong. No one wears their shoes and Durant won't change that. Also, afaik he can't really wear their apparel in game other than shoes.

Endorsements may help a little, but it is 90% the shoe designer and shoe company that determine a shoe's sales. Jordan brand had pretty much the #1 shoe designer of all time. That is why the S. Carter's, G-unit shoes etc all tanked. Kanye's line with adidas will tank too, and a Durant UA line would also tank.

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Jesus Quintana - 
Steven McTowelie - 
jcblass -
Steven McTowelie - 
jcblass - I don't get the mindset behind this. Underarmor is already a very profitable company with plenty of super stars and professional contracts.

Though it might be a nice feather in their cap to have KD in their line up, the price can't possibly be worth it.

Are they really going to get 300 million more in sales BECAUSE KD is branded by them?

I would love to see a 10 year projection for them with KD under contract and without.

Now rather than sign him, take the 30 million a year and invest it over 10 years.... Which is better?
Have you read nothing?

KD brought $175MM to Nike last year.

If he brought half that to UA, they'd earn enough revenue to cover the 10 year deal in 3 years.

There's also a lot of upside and potential to get much more revenue out of him. Phone Post 3.0

How did he bring 175 million to Nike? how do you even quantify that amount. Maybe 100 of the 175 million was going to be spent on Nike anyway, because there are Nike loyalists. It would not have mattered if it was a KD shoe or a Kevin Love shoe...

Maybe instead of NIKE paying Kevin Durant, they could have paid 2 lesser known all-stars PLUS ran 4 super bowl ads, that might have made up the difference.

It all seems very hard to really figure out what the ROI is on something like this.

Is NIKE going to make 170 million LESS next year if the lose KD? I don't think so...

Smarter people then you have quantified it and people are more loyal to players than brands than you seem to be aware of.

Within reason that is, and Under Armour is clearly reasonable. Phone Post 3.0

So you have no data to speak of? He is 100% right that it is not easy at all to quantify.

How much has Li Ning's Dwayne Wade shoe sold in the US? If under armor thinks they can monetize Durant the way Nike does they are dead wrong. No one wears their shoes and Durant won't change that. Also, afaik he can't really wear their apparel in game other than shoes.

Endorsements may help a little, but it is 90% the shoe designer and shoe company that determine a shoe's sales. Jordan brand had pretty much the #1 shoe designer of all time. That is why the S. Carter's, G-unit shoes etc all tanked. Kanye's line with adidas will tank too, and a Durant UA line would also tank.

Wade wasn't much of a factor with Jordan Brand either. Nobody bought Fly Wades.

You think G-Unit sneakers tanked? Those sneakers made a ton of money for 50. They actually sold very well, not sure why you think they tanked.

Why do you think Kanye's line will tank? He's done many successful collabs with different brands before. Hate the guy all you want, but he is very influential when it comes to fashion.