Nike, Under Armour and Sponsorship

Takeaway: Nike's $3.8 billion in sponsorship commitments is nearly 25 times those of Under Armour. Here's why that's important.

When you're the top brand with dominant market share like Nike (NKE), financial resources become a distinct competitive advantage.

 

In the chart below, company disclosures show that Nike has nearly $3.8 billion in sponsorships/endorsements on its books, which is 25 times higher than Under Armour (UA). That accounts for a far greater percentage of sales for Nike, too, as you can see in the chart below.

 

Nike, Under Armour and Sponsorship - sponsorship percentage of sales

 

Nike's financial obligations related to those sponsorships are also spread out over a longer time period compared to those of Under Armour, as this second chart shows. That's also a likely competitive advantage for Nike.

 

Nike, Under Armour and Sponsorship - Sponsorship Commitments


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