New York, NY, United States (4E Sports) – Reigning MVP Kevin Durant was reported to have signed an extension with Nike, disregarding the offer of Under Armour which is worth $265 million to $285 million.
Nike will keep Durant for 10 years with the deal having the possibility to reach $300 million or more.
Though the exact financial information was not released, Nike is reported to give Durant more than what he will earn from the Oklahoma City Thunder in the next two years.
Analyst for research firm ISI Group Omar Saad believed that Nike was not challenged by Under Armour.
“For Nike, this was nothing to them,” Saad shared with ESPN.
“They could easily build Durant’s business enough, assuming normal margins, where they could generate a cash flow of $60 million a year,” he added.
Saad also said, “And Nike is really good at monetizing its marketing assets, way better than anyone else.”
Nike’s offer seems enough as they landed Durant even though Under Armour’s offer included a 10 percent stock option.
Under Armour really wanted to sign Durant and was willing to spend more than eight percent of its annual marketing budget for the scoring champion and establish their brand outside the United States.
It could have been the biggest deal for Under Armour, according to ESPN.