Notre Dame Switching to UnderArmour

dublinirish

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Swarbick shoulda just said artificial turf is coming then dropped the mic and strolled outta there like a boss
 
tko

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hey hillbilly dshans, UA probably won't be making any ND tank tops and jean shorts, just sayin.
 
wizards8507

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Ironman8 said:
Wow stock options?
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connor_in said:
I know...especially at the start of the deal...that could mean waaaay more money on the front end much less later if it helps their business grow with other schools
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Whiskeyjack said:
Jack's like the guy from that Coke Zero commercial:

UA: "Eleventy Billion dollars? You drive a hard bargain Mr. Swarbrick, but you have a deal."
JS: "Annnnnd?"
UA: "And you've got stock options."
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Whiskeyjack said:
Not sure what it's at now, but ND's endowment was ~$6b when I graduated from law school in 2009. According to my IP prof, a huge chunk of that came from getting in on the ground floor with Google. If ND specifically bargained for stock options, it's surely part of their investment strategy.
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aubeirish said:
And stock options. Damn.
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For the record, there are no "stock options" involved in this deal. Notre Dame has the option to receive some of the cash payment in this deal in the form of Under Armour stock, but the "option to receive payment in stock" is not the same as a "stock option." A stock option is a type of derivative wherein the party can purchase shares at a predetermined price. The value of a stock option is that you have the choice to exercise it if market value exceeds the strike price. For example, you might have an option with a $10 strike price. If the shares go to $15, you can exercise your option and buy $15 shares for $10, thus making a profit of $5 immediately. The value in stock options is that you choose if and when to exercise them based on the share price in relation to the strike price.

What ND has is the ability to get paid in stock, not in stock options. Instead of $1 million in cash, ND could get $1 million in stock based on the current market price.

Again, the option to get paid in stock is not the same as a stock option.
 
Whiskeyjack

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wizards8507 said:
What ND has is the ability to get paid in stock, not in stock options. Instead of $1 million in cash, ND could get $1 million in stock based on the current market price.
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And what would the point of that be? Publicly traded stocks are fungible. That'd be like ND announcing that it can choose to receive $1m as 10,000 $100 bills, OR, in its sole and absolute discretion, it may elect to receive the payment price as 50,000 $20 bills instead.

[Insert SNL skit about 1st CityWide Bank of Change]
 
wizards8507

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Whiskeyjack said:
And what would the point of that be? Publicly traded stocks are fungible. That'd be like ND announcing that it can choose to receive $1m as 10,000 $100 bills, OR, in its sole and absolute discretion, it may elect to receive the payment price as 50,000 $20 bills instead.

[Insert SNL skit about 1st CityWide Bank of Change]
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Hell if I know. My guess is that there's some language in there with payment due dates where the value of stock given to ND in lieu of cash is based on market value at some date other than date of payment. This would function as an implicit stock option since ND could see what the stock has done in the interim, but it's not truly a stock option in the financial sense of the term. It's also possible that the contract values $1 differently than $1 worth of UnderArmour stock.

Savvy Jack said:
We couldn't be more excited about this opportunity, and by any measure, it's the largest deal of its kind in the history of collegiate athletics. It's 10 years in term. It applies to all of our teams and all of our programs, and it carries a very unique feature, which represents the depth and level of commitment, and that is of the cash component of this, which is the largest any school has had. The merchandise component is also the largest any school has ever had. But of that cash component, at Notre Dame's option, we can take a portion of it in Under Armour stock.
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dshans

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tko said:
hey hillbilly dshans, UA probably won't be making any ND tank tops and jean shorts, just sayin.
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I guess I'll just have to shear another sheep when (if) spring comes, pull out the spinning wheel, weave and foot pedal sewing machine to make my own.
 
IrishLax

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wizards8507 said:
Hell if I know. My guess is that there's some language in there with payment due dates where the value of stock given to ND in lieu of cash is based on market value at some date other than date of payment. This would function as an implicit stock option since ND could see what the stock has done in the interim, but it's not truly a stock option in the financial sense of the term. It's also possible that the contract values $1 differently than $1 worth of UnderArmour stock.
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Yeah, reading that quote, I think it's very much implied that there is a form of stock-option-ish clause in the contract. As Whiskey said, simply having the ability to take some of your cash and purchase publicly available stock at its current price would be something literally anyone is able to do. So why would you announce that? Or make a big deal out of it?

They're implying that Notre Dame will have some sort of unique stock purchasing power with their contractual $$, and will basically be "investing" in UA as a facet of the partnership. At least that's how I read it, and is similar to what I was told a couple weeks ago.
 
Irish8248

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For your convenience

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chubler

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It's a small thing, but the old gold outline on the numbers and the monogram is really nice. Looks a lot less like it was just screenprinted on.
 
Fbolt

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wizards8507 said:
For the record, there are no "stock options" involved in this deal. Notre Dame has the option to receive some of the cash payment in this deal in the form of Under Armour stock, but the "option to receive payment in stock" is not the same as a "stock option." A stock option is a type of derivative wherein the party can purchase shares at a predetermined price. The value of a stock option is that you have the choice to exercise it if market value exceeds the strike price. For example, you might have an option with a $10 strike price. If the shares go to $15, you can exercise your option and buy $15 shares for $10, thus making a profit of $5 immediately. The value in stock options is that you choose if and when to exercise them based on the share price in relation to the strike price.

What ND has is the ability to get paid in stock, not in stock options. Instead of $1 million in cash, ND could get $1 million in stock based on the current market price.

Again, the option to get paid in stock is not the same as a stock option.
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Ummm, thanks. But hey, like I said, could you just pass the salt?
 
tko

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dshans_zps9edca26e.png
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dshans modeling the style of tank top and jean shorts UA will use.
 
NDohio

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chubler said:
It's a small thing, but the old gold outline on the numbers and the monogram is really nice. Looks a lot less like it was just screenprinted on.
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I would imagine that is simply a mock up. I can't imagine the actual uniform just being a screen print.
 
Irish#1

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I'm looking at the jersey and thinking what would have been different if Nike had gotten the contract? Nothing, but the logo.
 
irishtrain

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Rhode Irish said:
I am not cool I guess, but I always thought kids liked Under Armour? Full disclosure: I don't like Under Armour and have never owned an Under Armour thing, but I kind of thought that made me a contrarian, not a trendsetter.
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Agree, I'm an addidas guy meaning its the brand I use because of quality and stlye. I have always used their shoes/sweats/hats as they are quality. I understand that the issue is $$$ and income to keep Notre Dame independant-that I'm all for. Secondly the kids they are recruiting like UA so once again anything for them to get them in.
 
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