Blog Post #5 – Re: “Is One Man’s “Name” Worth $350 Million?”
Article of Discussion: Response to Preston Wong’s 1st Blog Post “Is One Man’s “Name” Worth $350 Million?”
Original Article Title: Why Nike Should Let Kevin Durant Leave For Under Armour
Date of Article: 22nd August 2014
This blog post is a response to Preston Wong’s first blog post concerning Kevin Durant’s recent contract extension with Nike Sportswear. Nike had been forced to take action after Under Armour offered Kevin Durant a 10-year deal worth within the range of $265-$285 million dollars. Under pressure, Nike eventually caved and offered Kevin Durant a whopping 10-year $300 million dollar deal. Preston poses the question of whether one man’s name is truly worth that much and in this case I believe Kevin Durant’s name is worth this large sum of money that has been invested into his deal. With many accolades in the NBA winning 4 scoring titles and an MVP trophy before turning 26 years old, Kevin has already solidified himself as one of the top 2 basketball players in the world. This could bring very good publicity to Nike and having a superstar signed under their ranks does wonders for the brand name of Nike.
I believe being associated with paints the image that you are among the best if not the best. Nike has already come out with 7 pairs of shoes in the “KD” series which bring in large revenue for Nike Sportswear. Nike sales in Kevin Durant signature shoes increased by 400% from $35 million dollars to $175 million dollars between 2012 and 2013.This revenue in one year is already more than half of the $300 million dollars Nike just invested in Kevin Durant. By my honest estimation sales in KD/Nike sportswear will continue to increase and Nike will have made a very good return on their investment come 2024 when this deal runs out.
Cover Image Source: Sue Ogrocki/AP Photo
Article Picture Source: Ball Over All