Nike wins battle for Kevin Durant


Fending off a challenge from Under Armour (NYSE:UA), Nike (NYSE:NKE) holds on to the Oklahoma City Thunder's Kevin Durant, signing him to a new deal possibly worth $300M over the next ten years, and $350M over the next 20, reports the WSJ.

With Durant's original 7-year, $60M deal set to expire, Under Armour had made an aggressive play for the superstar, but Nike had the right to match any offer and reportedly exceeded Under Armour's bid on Saturday night.

Nike has the dominant share in the $4.5B basketball shoe market, and 2013 sales of Durant's Nike KD shoes of $175M compared to $300M for those under the name of LeBron James. Under Armour's total footwear net revenues were $299M in 2013.

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Comments (14)
  • june1234
    , contributor
    Comments (4482) | Send Message
     
    Corporations in small pants. Basketball just a side biz to top superstars now. Corp Lebron makes $2 off the court for every buck he makes playing on it. Following "Decision Part 2" he showed up at the world cup final flanked by 2 soccer greats and being asked who he thought would win. He's part owner of English premier leagues Liverpool club, and recently reportedly cleared $30M from his Beats stock sales. Dude is far bigger than any one team. Like he said during NBA finals I play for the name on the back of the jersey (vs team name on the front).
    1 Sep 2014, 09:22 AM Reply Like
  • DeepValueLover
    , contributor
    Comments (11349) | Send Message
     
    This is true. It makes you wonder why so many pro ballers end up broke.
    1 Sep 2014, 10:57 AM Reply Like
  • vikramnjnjjdjnd
    , contributor
    Comments (1444) | Send Message
     
    Ua dodged a bullet, no offense KD is a star and a stand up guy, he just can't sell shoes. Kareem was one of the best but he could never sell shoes so no one gave him a chance. The reason I like ua is because of the cool clothing and quality and also no big name endorsements. Really, a win win for both.
    1 Sep 2014, 10:14 AM Reply Like
  • june1234
    , contributor
    Comments (4482) | Send Message
     
    Public buys likeable big names. Nike sold $175M worth of KD shoes last year alone. He's no Lebron but he's very likeable specially after hitting it out of the park with that MVP acceptance speech of his,very likable, that's what the public wants to buy likeable winners. Nike golf brand did not exist before Tiger who is the Nike golf brand still.
    1 Sep 2014, 11:01 AM Reply Like
  • Stone Fox Capital
    , contributor
    Comments (10099) | Send Message
     
    at least they drove the price NKE has to pay higher.
    1 Sep 2014, 11:24 AM Reply Like
  • Michael Troper
    , contributor
    Comments (17) | Send Message
     
    Nike can pay Kevin Durant $300 million over ten years to wear Nike, but most people wear Under Armour because they like the quality and embrace the brand. I believe that more and more kids are embracing Under Armour than Nike. http://on.wsj.com/1qvZFSJ
    1 Sep 2014, 11:07 AM Reply Like
  • joanpete
    , contributor
    Comments (371) | Send Message
     
    Michael, Something I often do -- as an investor -- is to ask the salespeople in different stores how well or how poorly UA garments are selling. So far, I have been receiving positive comments FYI.
    1 Sep 2014, 12:54 PM Reply Like
  • youngdub774
    , contributor
    Comments (152) | Send Message
     
    yea clothing maybe, Nike shoes are still KING
    1 Sep 2014, 01:44 PM Reply Like
  • Paper Street Research
    , contributor
    Comments (155) | Send Message
     
    I don't know Michael,
    I'm 19 and play basketball, track, cross country, skateboarding and I prefer Nike. Every pair of track spikes and training shoes I've purchased have been Nike, I own a pair of Nike Skate shoes, 2 pairs of casual Nikes, Nike BBall. All in all I've probably spent over $500 on Nike apparel over the last 2 years.. I have never even considered under armor, other than for the actual under-gear.
    1 Sep 2014, 02:20 PM Reply Like
  • User 447425
    , contributor
    Comments (1751) | Send Message
     
    My kids and all their friends wear Nike. I pay for it and see it every day including at their schools. As obvious as the nose on my face.
    1 Sep 2014, 04:18 PM Reply Like
  • deercreekvols
    , contributor
    Comments (9741) | Send Message
     
    Players on the HS football team I coach are wearing UA cleats 2 to 1 over Nike or Adidas.
    The shift from UA clothing to footwear is happening and this is why I have been long UA for years.
    1 Sep 2014, 09:00 PM Reply Like
  • User 447425
    , contributor
    Comments (1751) | Send Message
     
    Not where I live it isn't changing. Nike is just as strong as ever.
    1 Sep 2014, 11:25 PM Reply Like
  • vikramnjnjjdjnd
    , contributor
    Comments (1444) | Send Message
     
    The turtle always wins the race, slow and steady. UA.
    2 Sep 2014, 01:42 AM Reply Like
  • 31299655
    , contributor
    Comment (1) | Send Message
     
    Under Armour is the New Nike!! This company has all the kids these days attention!
    5 Sep 2014, 05:04 PM Reply Like
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