Under Armor and Steph Curry are entering into a long-term partnership.
Source: Under Armour
NBA superstar Steph Curry and under armor once again rely heavily on each other.
The Baltimore-based sportswear brand and the four-time NBA champion announced Thursday that they will expand their decade-long relationship with a new long-term partnership. The deal will ensure Curry, 35, will stay with Under Armor long after his playing career is over.
The financial terms of the performance-based deal were not disclosed.
Curry will assume a new role as President of Under Armor’s Curry brand, working across categories including basketball, golf, women’s, youth and athletic style to deliver new products.
The nine-time NBA All-Star first signed with Under Armor in 2013 in a deal worth about $4 million a year.
His current contract with Under Armor is worth it $215 million and includes an equity investment in the company. Over the course of their partnership, Curry and Under Armor have jointly launched 10 signature shoes. Curry is the only athlete in Under Armor history to do so.
“If the last 10 years have shown me anything, it’s that Under Armor and I can build great things together,” said Curry. “In 2013 we put our trust in each other and I am determined to take this next step together.”
The new agreement underscores the importance of the Curry brand to Under Armor’s future as the company passes to new leadership of CEO Stephanie Linnartz, who took the helm in late February. Similar to Nike’s lifetime deals with Michael Jordan and LeBron James, Under Armor is counting on their biggest basketball star to remain involved in all aspects of his brand after he’s gone.
Linnartz said she looks forward to working closely with the Curry team as they focus on the next growth chapter.
Stephen’s new role will be as President of the Curry brand
Source: Under Armour
It’s been a turbulent year for Under Armor. While Curry has won multiple championships and awards and become one of the greatest players in NBA history, Under Amour’s business has lagged behind. The brand, founded by Kevin Plank in 2005, has struggled to gain market share Nike and Adidas in recent years.
Last month, the company reported a hit to sales and earnings for its third quarter with sales of $1.58 billion, but the retailer continues to struggle with inventory issues. The stock was down about 9% by the close on Wednesday.
Under Armor had footwear sales of $354 million in the fiscal third quarter. In three quarters, the segment generated nearly $1.1 billion in revenue. “We doubt Curry is anything more than a $250 million deal,” said Cowen analyst John Kernan.
In a way, Nike’s Jordan brand had its best year ever in 2022 with sales of about $5 billion. Jordan finally retired from the NBA in 2003. Nike footwear sales totaled $7.97 billion in the third quarter.
Plank said he believes the revamped Curry partnership will give the company the catalyst it needs.
“Stephen is one of the greatest talents of our generation. At his core, he embodies what it means to be an Under Armor athlete and is an integral part of the Under Armor family. We look forward to evolving together and creating even more innovation and inspiration for athletes around the world,” said Plank, who is now the company’s executive chairman and brand chief.
Curry will be tasked with helping drive athlete insights, product development, and strategic business and marketing efforts.
He will also have a full advisory role focused on expanding brand loyalty and recruiting to grow Under Amour’s athlete roster.
The partnership includes funding community impact efforts to create opportunities, access and equity for the next generation of athletes.
Source: Under Love
Youth athletics and justice have always been important to Curry, who started it Underrated tourthat helps underrated high school players get more exposure.
As part of its new deal, Under Armor will also allocate more funding to community impact efforts.
“Faith is a big part of who I am on and off the pitch. I believe in Curry Brand and Under Armour, the team that’s in place now and what we’re doing together,” Curry said. “We share a vision for a great future.”
Source : www.cnbc.com