Notre Dame Switching to UnderArmour

Rocket89

Rocket89

Uniform Connoisseur
Messages
2,914
Reaction score
551
rocket66 said:
I know, but it's all about perception.
Click to expand...

And Nike has that perception on lock down for a good long time, certainly for as long as the duration of Notre Dame's contract with Under Armour.

UA's growth is often cited and obviously the company is doing some good things. Their projected growth in revenue of $400 million for 2013 (up 20% from 2012) ain't no joke. Even even if that growth continues at this rate (it won't) they'd still need 15 to 20 years to start approaching the level of Nike, with the assumption that Nike won't grow.

Nike as a company is ~12 times the size of UA.

UA's market share of running shoes is at 2.7% and Nike is at 57.5%.

The market share in basketball sneakers is 0.57% for UA and 92% for Nike.

UA has basically grown because they've targeted children, women, and the 'every day guy' with their assortment of apparel. That's why Under Armour is at a solid 17.6% market share in apparel sales compared to Nike's industry leading 25.8%. However, they're bound to hit a wall with this growth and I'd bet that happens within 2 to 3 years.

They should still remain very competitive in apparel sales but they'll have to because that's the majority of their business and they face some steep uphill climbs gaining market shares in other areas.

For example, I feel pretty confident that UA won't make a dent in basketball or soccer over the next 10 to 20 years--two of the world's biggest and most popular games. That's kind of a big deal. Meanwhile, Nike is poised to overtake Adidas in the soccer market with the World Cup coming up.

TL;DR version: Under Armour has a long way to go to change the perception that they're more than an apparel company dabbling in the "big sports." Nike's running shoe revenue alone is three times the size of Under Armour's entire company revenue.

This doesn't even bring up the fact that the vast majority of the athletes (especially basketball, soccer, and to an extent the football players...although they might prefer soome UA stuff on the field to Adidas, but not Nike) perceive UA as tantamount to signing a deal with a more successful version of And 1.
 
ahommell

ahommell

New member
Messages
51
Reaction score
2
Not everything fits like it should... Under Armour typically fits better and more people than ADIDAS. Just my opinion.
 
Kaneyoufeelit

Kaneyoufeelit

Bowl Eligible
Messages
4,440
Reaction score
635
<blockquote class="twitter-tweet" lang="en"><p>You know, for all the fans concerned about <a href="https://twitter.com/search?q=%23NotreDame&src=hash">#NotreDame</a> switching to <a href="https://twitter.com/UnderArmour">@UnderArmour</a> there sure a lot of NFL guys wearing that gear by choice.</p>— Jake Brown (@Jake_Brown) <a href="https://twitter.com/Jake_Brown/statuses/422460573423390721">January 12, 2014</a></blockquote>
<script async src="//platform.twitter.com/widgets.js" charset="utf-8"></script>
 
dublinirish

dublinirish

Everestt Gholstonson
Messages
27,320
Reaction score
13,088
Nike are exactly like Apple these days, inferior products/shady production values but great marketing pull
 
IrishLax

IrishLax

Something Witty
Staff member
Messages
37,545
Reaction score
28,992
dublinirish said:
Nike are exactly like Apple these days, inferior products/shady production values but great marketing pull
Click to expand...

This. They have the aura. And while I agree with Rocket about Under Armour being galaxies away from Nike as an overall brand, for football they aren't that far apart. Especially relative to how Nike >>>>>> Adidas. It's more like Nike >>> UA, and in 5 years it will only be Nike > UA.

Adidas has virtually no football presence. Their only serious endorsement is RGIII. They make substandard gear and apparel. Contrast that to Under Armour, who has Tom Brady, Cam Newton, etc. as well as the premier high school All-American game. UA makes great cleats. Their ColdGear and the like was revolutionary. They're already getting a significant foothold for football and that's only going to increase.

Where Under Armour is so far behind is with their running shoes, basketball gear, and soccer gear. I don't know if they will ever be competitive in those realms.
 
wizards8507

wizards8507

Well-known member
Messages
20,660
Reaction score
2,661
ulukinatme said:
Hmmmm, Kentucky seems to get a pretty good deal compared to some of the better schools in the conference. Wonder why that is?
Click to expand...

Basketball, maybe?

EDIT: In fact, I'm sure of it. They're way out of balance in the Equipment to Cash ratio, getting more cash than any other team listed. This makes sense considering football is much more equipment-intensive than basketball.
 
Last edited:
M

Me2SouthBend

Guest
Rocket89 said:
And Nike has that perception on lock down for a good long time, certainly for as long as the duration of Notre Dame's contract with Under Armour.

UA's growth is often cited and obviously the company is doing some good things. Their projected growth in revenue of $400 million for 2013 (up 20% from 2012) ain't no joke. Even even if that growth continues at this rate (it won't) they'd still need 15 to 20 years to start approaching the level of Nike, with the assumption that Nike won't grow.

Nike as a company is ~12 times the size of UA.

UA's market share of running shoes is at 2.7% and Nike is at 57.5%.

The market share in basketball sneakers is 0.57% for UA and 92% for Nike.

UA has basically grown because they've targeted children, women, and the 'every day guy' with their assortment of apparel. That's why Under Armour is at a solid 17.6% market share in apparel sales compared to Nike's industry leading 25.8%. However, they're bound to hit a wall with this growth and I'd bet that happens within 2 to 3 years.

They should still remain very competitive in apparel sales but they'll have to because that's the majority of their business and they face some steep uphill climbs gaining market shares in other areas.

For example, I feel pretty confident that UA won't make a dent in basketball or soccer over the next 10 to 20 years--two of the world's biggest and most popular games. That's kind of a big deal. Meanwhile, Nike is poised to overtake Adidas in the soccer market with the World Cup coming up.

TL;DR version: Under Armour has a long way to go to change the perception that they're more than an apparel company dabbling in the "big sports." Nike's running shoe revenue alone is three times the size of Under Armour's entire company revenue.

This doesn't even bring up the fact that the vast majority of the athletes (especially basketball, soccer, and to an extent the football players...although they might prefer soome UA stuff on the field to Adidas, but not Nike) perceive UA as tantamount to signing a deal with a more successful version of And 1.
Click to expand...

Not sure where you got your info, but I can tell you it doesn't tell the real story. I work for a pretty sizable retailer and last year we sold more UA apparel than Nike apparel. Those basketball shoe %'s are not even close to reality (at least as far as we go, and I'd be shocked if it was true nation or world wide). Adidas does a pretty fair BBall shoe business so those numbers just don't add up. UA is growing very quickly and there is no end in sight.
 
wizards8507

wizards8507

Well-known member
Messages
20,660
Reaction score
2,661
Me2SouthBend said:
Not sure where you got your info, but I can tell you it doesn't tell the real story. I work for a pretty sizable retailer and last year we sold more UA apparel than Nike apparel. Those basketball shoe %'s are not even close to reality (at least as far as we go, and I'd be shocked if it was true nation or world wide). Adidas does a pretty fair BBall shoe business so those numbers just don't add up. UA is growing very quickly and there is no end in sight.
Click to expand...

Your retail story is a fine anecdote, but if we're comparing strictly on size, UA is a $2 billion company. Nike is a $24 billion company. That's twelve times.
 
IrishLax

IrishLax

Something Witty
Staff member
Messages
37,545
Reaction score
28,992
wizards8507 said:
Your retail story is a fine anecdote, but if we're comparing strictly on size, UA is a $2 billion company. Nike is a $24 billion company. That's twelve times.
Click to expand...

Because of their international presence, among other things. In the United States, there simply isn't that much of a disparity. People love Under Armour apparel. It's awesome. They are the top up and coming brand right now, with a growing presence in football and an extremely strong foothold in "niche sports" (i.e. hunting, etc.).

What UA currently way behind when it comes to soccer, running shoes, and basketball. Those are huge markets and the major international markets.
 
M

Me2SouthBend

Guest
wizards8507 said:
Your retail story is a fine anecdote, but if we're comparing strictly on size, UA is a $2 billion company. Nike is a $24 billion company. That's twelve times.
Click to expand...

Not debating the size difference of the companies, just what my companies experience is w the 2. UA apparel outsold Nike apparel for us last year. First time that has happened.
 
wizards8507

wizards8507

Well-known member
Messages
20,660
Reaction score
2,661
IrishLax said:
Because of their international presence, among other things. In the United States, there simply isn't that much of a disparity. People love Under Armour apparel. It's awesome. They are the top up and coming brand right now, with a growing presence in football and an extremely strong foothold in "niche sports" (i.e. hunting, etc.).

What UA currently way behind when it comes to soccer, running shoes, and basketball. Those are huge markets and the major international markets.
Click to expand...
I'm not arguing better or worse, just strictly numbers. Interesting point about the international presence. I'll do some research. Stay tuned.

Me2SouthBend said:
Not debating the size difference of the companies, just what my companies experience is w the 2. UA apparel outsold Nike apparel for us last year. First time that has happened.
Click to expand...
This might be due to the international disparity, as Lax pointed out. I'll get back to you.
 
wizards8507

wizards8507

Well-known member
Messages
20,660
Reaction score
2,661
Revenue by company. UA FY13 wasn't available yet, so I used FY12 for comparability.

UnderArmour in Fiscal 2012: $1.7B North America, $0.1B Other
Nike in Fiscal 2012: $8.8B North America, $12.3B Other

So yes, UnderArmour has virtually no international presence, which skews numbers in favor of Nike, but Nike is still five times larger when you isolate North America.
 
IrishLax

IrishLax

Something Witty
Staff member
Messages
37,545
Reaction score
28,992
wizards8507 said:
Revenue by company. UA FY13 wasn't available yet, so I used FY12 for comparability.

UnderArmour in Fiscal 2012: $1.7B North America, $0.1B Other
Nike in Fiscal 2012: $8.8B North America, $12.3B Other

So yes, UnderArmour has virtually no international presence, which skews numbers in favor of Nike, but Nike is still five times larger when you isolate North America.
Click to expand...

Right, it's still much larger, but it's not ~12 times larger. So Nike still outpaces UA in the United States significantly, but it's not to the order of magnitude originally described. And then when you look squarely at football, it tightens up even more.
 
Rocket89

Rocket89

Uniform Connoisseur
Messages
2,914
Reaction score
551
Me2SouthBend said:
Not sure where you got your info, but I can tell you it doesn't tell the real story. I work for a pretty sizable retailer and last year we sold more UA apparel than Nike apparel. Those basketball shoe %'s are not even close to reality (at least as far as we go, and I'd be shocked if it was true nation or world wide). Adidas does a pretty fair BBall shoe business so those numbers just don't add up. UA is growing very quickly and there is no end in sight.
Click to expand...

Your one retail store tells the real story?

Adidas has been hovering around 5-6% of the market in basketball shoes. So yes, the numbers are a reality.

Like others have already pointed out, Nike is much larger world-wide. And yes, UA has been doing well WITH APPAREL in the United States. No one is disputing that.
 
WakeUpEchoes

WakeUpEchoes

New member
Messages
2,574
Reaction score
101
<blockquote class="twitter-tweet" lang="en"><p>Hearing Under Armour/Notre Dame deal will be largest deal in total $ committed in all of college sports licensing.</p>— darren rovell (@darrenrovell) <a href="https://twitter.com/darrenrovell/statuses/422887338529030144">January 14, 2014</a></blockquote>
<script async src="//platform.twitter.com/widgets.js" charset="utf-8"></script>
 
Cali_domer

Cali_domer

Banned
Messages
3,569
Reaction score
296
WakeUpEchoes said:
<blockquote class="twitter-tweet" lang="en"><p>Hearing Under Armour/Notre Dame deal will be largest deal in total $ committed in all of college sports licensing.</p>— darren rovell (@darrenrovell) <a href="https://twitter.com/darrenrovell/statuses/422887338529030144">January 14, 2014</a></blockquote>
<script async src="//platform.twitter.com/widgets.js" charset="utf-8"></script>
Click to expand...
Well that's good..
 
Rocket89

Rocket89

Uniform Connoisseur
Messages
2,914
Reaction score
551
Interested to see how much the deal is per year. For all the complaining about the deal Michigan got with Adidas I would hope this deal is for $8+ million.
 
rikkitikki08

rikkitikki08

Well-known member
Messages
4,261
Reaction score
3,090
So when do you guys think we will see the ND apparel website switch over to the UA gear? Does the Adidas stuff get cut drastically in price soon?
 
Rocket89

Rocket89

Uniform Connoisseur
Messages
2,914
Reaction score
551
Cali_domer said:
Sounds like it will eclipse that .
Click to expand...

The way the tweet is worded, it has me curious. Total money sounds more like a longer deal, not necessarily more per year.

A 12-year deal worth $6 million per year would be the biggest contract in total money. But Michigan would still get more each season.
 
Irish Insanity

Irish Insanity

Well-known member
Messages
9,885
Reaction score
584
Fuck Michigan.

Changing to UA should yield more slender fitting clothing based upon their products currently on the market. That is good for people like me who are skeletal skinny and most clothing is to short or to wide.
 
Cali_domer

Cali_domer

Banned
Messages
3,569
Reaction score
296
Rocket89 said:
The way the tweet is worded, it has me curious. Total money sounds more like a longer deal, not necessarily more per year.

A 12-year deal worth $6 million per year would be the biggest contract in total money. But Michigan would still get more each season.
Click to expand...
I doubt we would settle on a number that was less then what Michigan was/is getting.
 
You must log in or register to reply here.
Top