Under Armour Replaces Nike at University of Cal; Signs 10-Year Contract
Under Armour continues to rise to the top and sideline it’s biggest competitor, Nike, as Under Armour replaces Nike as the partner of University of California Berkeley.
As Under Armour signed a 10-year partnership with the University of California Berkeley, worth $86 million, the deal replaces the contract the California Golden Bears have with Nike, which will expire next season.
The 10-year deal, which will be in effect this summer, is regarded as the most comprehensive in college sports, due to it’s agreement in which the whole campus is included.
Aside from the $3.5 million in cash a year, an annual product allowance of $4.76 million, and all of the campus’ sport’s program’s apparel, footwear and equipment being exclusively designed by Under Armour, product discounts for the student body and faculty, and internship opportunities will be provided to Berkeley graduates.
“We’re thrilled to have found a partner that is as excited about what makes Cal Cal as we are,” Athletic Director Mike Williams said. “We share Under Armour’s vision on innovation, and it’s apparent we have the same work ethic.”
Kevin Plank, CEO of Under Armour, stated that the company is focused on placing a greater emphasis on athletic teams with success both on the field and in the classroom, with the inclusion of the entire campus for the “betterment of fitness, wellness, charitable and professional development in ways never done before by an apparel and footwear partner.”
After entering the collegiate market with a 2006 deal with Auburn University, this Baltimore-based athletic gear maker is taking a role as a broader health and fitness brand to the next level.
Under Armour Being Opportunistic
Analysts have warned that sponsorship deals will become more pricey as Under Armour, Nike and Adidas compete. Of course for UA, money obviously isn’t an issue, and gaining more sales than the two isn’t either. After all, it wouldn’t be the first time Under Armour was able to spot an opportunity Nike couldn’t.
In March, Stephen Curry was overlooked by Nike and Under Armour stepped in with an eye for potential and a deal that caused Stephen Curry’s shoes to sell more than that of Nike’s Kevin Durant, Lebron James and Kyrie Irving shoes.
UA’s sponsorship deals have helped them to reach a strong sales growth that has outpaced Nike and their CEO assures us that it’s not by luck. “That we’ve aligned ourselves with these types of schools is no accident,” Plank said.
Under Armour would definitely have to boost it’s brand allure if they ever want to be a top competitor like Nike, and a deal like this demonstrates just how far they’re willing to go. With the ability to spot potential and outpace the biggest competitor in the industry, Under Armour could be expected to grow to be one of the top competitor’s in the field.Under Armour replaces NikeUnder Armour replaces Nike)
(Under Armour Replaces Nike)