http://www.forbes.com/sites/mikeoza...elp-texas-universitys-nike-deal/#340ab5cd4eef
Kevin Durant To Warriors Should Help The University Of Texas' Nike Deal
Kevin Durant has
decided to sign with the Golden State Warriors for
$54 million over two years.
That’s good news for Warriors fans, who enjoyed an NBA title in 2014-15, but lost in the finals this past season to the Cleveland Cavaliers. But another winner may be the University of Texas.
Last year the Longhorns and
Nike inked a $250 million apparel deal that included Durant. Here is the
link to the term sheet.
As SB Nation
reported after the deal was announced: “The negotiations between Texas and Nike this year and Durant and Nike last year played out in similar fashion.
Under Armour offered Durant a 10-year, $250 million contract during the summer of 2014, but he ultimately
stuck with Nike to ink a package that could reportedly total $300 million, just like the Horns stuck wtih Nike despite reports that Under Armour was willing to offer a monster compensation package. Now Durant and Texas will benefit from the university’s new deal with the apparel giant and industry leader, as Nike will produce a
co-branded signature line of apparel from which the Horns will receive royalties. The deal was possible in large part because Durant’s Nike line “has reached record levels in recent years compared to other pro athletes in Nike’s portfolio,” according to a term sheet released by the school.”
Obviously, Silicon Valley is a much bigger market than Oklahoma City. This
past season Durant was fifth in the league in jersey sales (Stephen Curry was first) while Oklahoma was seventh as a team in the NBA compared to the Warriors first place slot.
Given the co-branding deal with Durant, Texas should profit from his move to the Golden State too.