If this next bit of news is any indication, Kevin Durant is going to be an insanely rich man between his endorsement deals and upcoming free agency after the 2015-16 NBA season.
According to ESPN's Darren Rovell, Under Armour has just offered Durant a deal that radically dwarfs his current playing contract with the Oklahoma City Thunder - an agreement that would signal the end of Durant's partnership with Nike:
Kevin Durant's representation has informed Nike that it has a $265M-$285M deal from Under Armour. Nike has the right to match.
— darren rovell (@darrenrovell) August 20, 2014
Per Rovell, the contract would extend over ten years and would mark a huge financial commitment for Under Armour. His annual take-home of $26.5-$28.5 million would cost the company about ten percent of their current marketing budget - a high cost for a company that currently makes around one percent of its revenue from basketball shoes.
Due to the fact that Under Armour's current business model incorporates a very small basketball division, the company will have to guarantee Durant his money up front rather than offering him a minimun guarantee plus royalties.
If Nike matches (which is unlikely at this point), Under Armour can't legally sign Durant to a contract. However, if Nike offers the perennial All-Star a lower guarantee plus royalties, Durant is still able to choose Nike over Under Armour at his behest.
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