Darren Rovell and ESPN.com is reporting that Nike believes they will be able to keep Kevin Durant in tow after offering him a megadeal in the range of $265-$285 million over 10-years.
Nike has countered Under Armour’s offer. Looks like they will keep Kevin Durant. Story coming from @ESPNSteinLine and I.
— Darren Rovell (@darrenrovell) August 31, 2014
According to the report, Nike officials told Durant and his team at Jay Z’s Roc Nation Sports that it would do what was needed to come close to the $325 million offered by Under Armour.
While the exact Nike offer for Durant isn’t known, sources told ESPN that Durant should make more — in base and royalties — than the Thunder will pay him over the next two seasons ($41.2 million). That’s why fans in Oklahoma City were nervous about a possible move to Under Armour, which could have steered him more to returning to his local roots to play for the Washington Wizards when he becomes a free agent after the 2015-16 season.
Analyst Omar Saad, senior managing director of ISI’s luxury, apparel and footwear team, who covers all the major brands on Wall Street, said that, despite the negotiations coming down to the final hours, he always believed that Nike would win Durant’s services.
“For Nike, this was nothing to them,” Saad said. “They could easily build Durant’s business enough, assuming normal margins, where they could generate a cash flow of $60 million a year. And Nike is really good at monetizing its marketing assets, way better than anyone else.”
Nike always made the most sense for the reigning NBA MVP. Those same kids who rush out to get the newest KD’s from Nike, may not have been so responsive towards Under Armour.
I don’t see kids lining up for a pair of Under Armour anything at this time. Not when it comes to basketball anyway.
Say what you want about Durant’s relationship with Jay Z and Roc Nation, but you have to believe Shawn Carter was the one who convinced Durant to be patient and allow Nike to come somewhere close to the reported $325 million that Under Armour offered.
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