Kevin Durant will sign new contract with Nike
Oklahoma City Thunder star and NBA MVP Kevin Durant will stay with Nike, reaching a deal with the sports apparel giant that will rival Under Armour's 10-year, $250-million offer, a person familiar with negotiations told USA TODAY Sports.
The person requested anonymity because he was not authorized to speak publicly about Durant's decision.
Durant's seven-year deal worth at least $60 million is expiring, and Under Armour moved in with a lucrative offer. Industry insider Matt Powell, a shoe analyst for SportsOneSource, called Under Armour's pitch to Durant "unprecedented."
While the final dollar amount is expected to rival and perhaps surpass what Under Armour offered, this is a coup for Jay-Z's Roc Nation Sports, which proved it can procure a financially significant endorsement deal.
The 10-year deal with Nike has the potential to reach $300 million and includes a $50 million retirement package, two people familiar with the terms of the deal told USA TODAY Sports.
Durant signed the deal Saturday in Texas.
Under Armour is based in Baltimore, near Durant's Maryland hometown, and is trying to grab a bigger share of the basketball shoe market, which is dominated by Nike and Nike's Jordan Brand. Those two companies control almost 95% of the basketball shoe apparel market.
Under Armour believed Durant could help it chip away at Nike's stranglehold and increase its exposure worldwide, and Powell believed Under Armour's offer to Durant, which included shares of stock, was just too big for Durant to turn down.
But one factor had been underplayed: Durant loves Nike and wanted to stay if Nike could put together a comparable – maybe not the same – offer, a person familiar with Durant's thinking told USA TODAY Sports. The person requested anonymity because he was not authorized to speak publicly about the situation.
Coming out of college in 2007, Durant turned down more money from Adidas and signed with Nike, and Nike remained Durant's favored brand. Powell said Nike's best chance to retain Durant would be to come in with a competitive offer and count on Durant's preference for Nike.
Powell said Nike had just begun to make money off Durant's shoes, and he said he wasn't sure the company was willing to extend such a large offer to keep Durant. Powell said last week that Nike "has let some athletes walk because Nike wasn't willing to pay big money. Nike's sending a clear signal that they're not seeing the return on investment on big shoe contracts."
Last year, Under Armour pried Golden State Warriors All-Star Steph Curry from Nike, and two years ago, Dwyane Wade left Jordan Brand for Chinese apparel manufacturer Li-Ning.
Nike has LeBron James and Kobe Bryant, but with Bryant closing in on retirement, keeping Durant would mitigate Bryant's departure and ensure the company has the two best players in the world.
ESPN first reported Durant planned to stay with Nike.
