The biggest mistake in marketing history: Nike ‘threw away’ $14 billion by not renewing Curry deal
He wore the brand for his first four seasons in the NBA, but the sportswear giant failed to match Under Armour’s offer of $4 million
One of the dreams of any elite athlete is to be sponsored by one of the world’s top sports brands, which often serves as a boost to being recognized as a global star.
Nike, one of these brands, is the leader in the United States and has contracts with athletes like LeBron James, Kevin Durant, Tiger Woods, and Cristiano Ronaldo. Some of them even signed lifetime contracts with the sportswear giant.
The company with the famous swoosh logo has always been known for anticipating and signing future stars in their respective sports.
This is why it’s so surprising that they let someone of Stephen Curry‘s caliber slip through their fingers, especially since the Warriors star wore Nike shoes throughout his college career, and even his godfather, Greg Brink, worked for the company.
In his final year at Davidson College, Curry was the top scorer in NCAA Division I with an average of 28.6 points, and the Warriors selected him with the 7th pick in the 2009 draft.
Nike signed him to a contract until 2013, the year he broke out, scoring 54 points at Madison Square Garden and setting the NBA’s single-season three-point record.
End of Contract and Nike’s Right of First Refusal
Once his contract ended, Curry was free to hear offers from other brands, but Nike had the right to match any higher offer he received.
This is where Nike’s monumental failure began, specifically during a meeting held at the Warriors’ offices between the brand’s representatives, Curry, and his father, former NBA player Dell Curry, to discuss their plan for him.
Both Curry and his father quickly realized that Nike wasn’t going to value him like their three major basketball icons: Kobe Bryant, Kevin Durant, and LeBron James. The poor presentation by Nike that day didn’t help either.
The first sign of disrespect, as his father recounted, was when the representatives repeatedly called him “Stephon” instead of Stephen-a glaring mistake that no one in the room bothered to correct.
A Disastrous Negotiation
As the meeting progressed, it became increasingly clear that Nike did not value Curry as he deserved. They had offered youth development camps to younger players like Anthony Davis and Kyrie Irving but not to Stephen, which disappointed him.
To top it off, one of the PowerPoint slides they showed had Kevin Durant‘s name on it.
This was the final straw for Curry and his father, who saw it as yet another sign of disrespect. Despite everything, Nike offered him a contract worth $2.5 million per year.
However, the Currys left that meeting convinced that Stephen’s image was worth much more. That’s when Under Armour stepped in, offering him a $4 million per year contract. Nike had the right to match the offer but chose not to.
Under Armour Took the Risk… and Doubled Its Value
Under Armour took a big risk, especially since Curry had yet to make the playoffs and had only played 26 games the previous season due to injury.
But the gamble paid off spectacularly, given the multimillion-dollar returns from the deal. Curry went on to win four NBA championships (2015, 2017, 2018, and 2022) and became one of the most beloved players in the league.
Under Armour’s stock price, which was $47 before Curry joined, soared to $120. The brand’s value, which was $14 billion before signing him, doubled to $28 billion within a few years after partnering with the legendary shooter.
Curry also helped attract other major sports stars like golfer Jordan Spieth and MLB player Bryce Harper and signed a 10-year deal (from 2020 to 2030) as the official uniform provider for MLB.
Curry even tried to sign Caitlin Clark, the new icon of women’s basketball, but was unsuccessful-she chose Nike.
A 10-Year, $1 Billion Contract!
The partnership was a goldmine, and Under Armour quickly secured a new contract with Curry through 2024, with a total value that could reach $1 billion according to some sources.
They also offered him many other incentives, such as making him a co-owner of the company by giving him an equity stake.
As a result of this alliance, Curry‘s shoes have become the second-best-selling in the United States, only behind Michael Jordan‘s, surpassing those of Kobe Bryant, LeBron James, and Kevin Durant in popularity.
More than one person at Nike must be kicking themselves for letting the $14 billion man slip away, all because they didn’t match Under Armour’s $4 million per year offer-the biggest marketing mistake in history.
