Under Armour Offers Kevin Durant $285 Million; Will Nike Match It?

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A couple of weeks ago, news broke on the Interweb that Under Armour offered professional basketball player Kevin Durant a new endorsement deal, reportedly $265 to $285 million over 10 years.

Some outlets even reported that the 25-year-old Washington D.C. native had already left Nike and signed with Maryland-based Under Armour. However, those rumors are 100 % false at the time of the press.

The Oklahoma City Thunder small forward is still in negotiation.

Durant has a decision to make! Since joining¬†Jay-Z‘s Roc Nation Sports last summer, the agency has been pushing Durant to sign more lucrative deals and his agents were interested in stronger negotiations.

According to ESPN, “Kevin Durant’s representation Roc Nation Sports informed Nike on Wednesday that he has a deal on the table with Under Armour worth between $265 million and $285 million over 10 years, sources. The deal includes Under Armour stock and other incentives, such a community center built in his mother’s name, whose exact worth will not be known for some time.”

Nike, which saw its signature business related to the¬†Oklahoma City Thunder¬†forward grow to roughly $175 million at retail last season, will have the right to match, which is a condition of Durant’s current contract with the brand. Durant can still choose Nike if it doesn’t match but can’t legally choose Under Armour if Nike does.”

Nike’s last offer, sources said, would have given Durant a base and a minimum royalty guarantee that would equal no less than $20 million a year.”

If Under Armour wins the services of Durant, it would be the largest sponsorship deal the company has ever committed to. The average of $26.5 million to $28.5 million means that Under Armour would be devoting nearly 10 percent of its current annual marketing budget on him. Although Under Armour has given investors guidance that it might hit $3 billion in revenues this year, only about 1 percent of that is from basketball shoes.”

Because Under Armour has such a small basketball business, the company has to guarantee Durant his money up front, instead of the typical shoe deals that offer a minimum guarantee plus up to 5 percent royalty on the wholesale revenues.”

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Photos Credit: Kevin Duarant’s Instagram

Source: ESPN

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Donovan

Donovan is the CEO and Editor-In-Chief of www.dmfashionbook.com. For all general inquiries please email don@dmfashionbook.com Donovan has a BA in Journalism & Media Studies from the prestigious Rutgers University. He's currently studying entertainment and fashion law.