The reigning NBA Most Valuable Player and Oklahoma City Thunder forward, Kevin Durant, recently signed a 10-year deal with Nike worth $300 million following his 7-year, $60 million agreement. But including the retirement package and other benefits, the new deal could be north of $350 million for over 20 years. Durant’s John Hancock did not come easily though. Under Armor threatened Nike by making an offer that foiled Nike’s initial $200 million offer.  Nike is ten times the size of Under Armor – as such the bidding war was not alarming to Nike. But Under Armor CEO Kevin Plank was not disappointed after his defeat. He acknowledged Nike’s upgraded deal as a victory since Nike paid an extra $150 million than they had initially planned. The increase Nike shelled out creates more opportunities for Under Armor in other sports considering Nike will not be able to deploy as many resources in other areas.

Although Kevin Durant is by consensus the second best player in the league – behind LeBron James – is his brand name worth $350 million? Is any person’s signature worth that much? According to SportsOneSource analyst Matt Powell, 2013 was the first year Nike came close to breaking even on Durant’s first endorsement deal. Nike would have to sell twice as many shoes in order to make money as Durant’s new contract approaches $30 million per year. But Durant’s rapid rise in the NBA is worth his ludicrous price tag. Similar to LeBron James, Durant’s name and star power will be the main selling point for his shoes and gear. As Durant continues to develop as one of the elites in the NBA, his marketability will rise and his brand will rocket to new heights. If Durant can continue his uprising and hold his position amongst the top of the basketball Mount Rushmore, his John Hancock is undoubtedly worth $350 million.

http://www.forbes.com/sites/kurtbadenhausen/2014/08/22/why-nike-should-let-kevin-durant-leave-for-under-armour/