ORLANDO - As you arrive here in the land of Mickey Mouse for festivities for the Under Armour All American game, it is quite apparent that the wide-eyed kids over at the Magic Kingdom aren't the only ones dreaming big these days.
Under Armour has just overtaken Adidas as America's No. 2 apparel and footwear company, surpassing $3 billion in sales in 2014. And the company is protecting its house here in Orlando, hosting and cultivating relationships with the stars of tomorrow, the elite high school players in America getting ready to populate the nation's college football rosters.
Both Under Armour and third-place Adidas continue to chase Nike for superiority in sports gear. But the University of Miami can tell you first-hand that it is game on in the race for attention.
Miami was the nation's first school to ink an exclusive marketing/apparel contract with an apparel company. The Hurricanes' deal with Nike 26 years ago was revolutionary. The Nike swoosh has been on the face of Miami T-shirts, hats and jerseys ever since. The partnership has had huge benefits for both the school and the company.
But Under Armour and Adidas are coming after Nike in a big way and appear days away from one of them beating out Nike for the Miami contract. The most recent Nike/Miami deal expires at the end of August and Under Armour and Adidas have submitted huge offers to UM to replace The Swoosh, which is sitting right now on an opportunity to match that will last just a few more days.
Miami Athletic Director Blake James is expected to announce the winner of the sweepstakes this week. Adidas is widely projected to get the nod.
There have always been benefits to being Numero Uno for Nike in the lucrative collegiate athletic business. Nike outfitted 45 of the 65 power conference teams last season. Adidas and Under Armour have always had to write bigger checks than Nike to gain traction.
But if Nike decided to get into a bidding war for the Hurricanes it would have far-reaching implications. Nike uses a slotting system and a sliding scale to determine what it pays schools. If it deviates from that structure, it eventually would have to pay every school more.
So The U is on the open market ready to reap the benefits of this jersey war.
Adidas, the quiet favorite, and Under Armour are believed to be battling neck and neck to win over Miami, both submitting offers that blew past the present Nike deal by a margin believed to be in the neighborhood of an additional $3 million per year.
The new deal, whichever way Miami goes, will put the Canes at the top of the ACC alongside Florida State, the place where The U belongs despite the decade-long struggles of the football program. The Hurricane brand still carries a lot of strength in the college football world and internationally.
FSU gets $4.4 million from Nike under its present contract. North Carolina gets $3.5 million. Under Armour, based in Baltimore, upped the ante at Maryland and landed the Terps for $4.3 million. Adidas landed North Carolina State for $3,025,000.
But to show you how the companies bargain hunt, Clemson right now is only getting $1 million from Nike. Adidas pays $8 million to Michigan. Notre Dame is believed to get $9-10 million from Under Armour, which was founded just 18 years ago in Maryland entrepreneur Kevin Plank's basement.
The bidding wars taking place can only benefit the schools involved, and now it is Miami's turn to cash in.
The money pays for uniforms, footwear and apparel for athletes and staff. It often can include gear for student sections and campus events, or even ushers at event venues.
In return, the companies get exclusive access to the fan base and the opportunity to generate lifelong sales across all channels - casual footwear, running, football, basketball and apparel. The contracts are coveted by the companies because the fan bases are young, affluent and socially mobile.
And there is plenty of cash to go around.
So those new Nike uniforms that you saw unveiled this year. Be prepared for them to go into the dumpsters outside the Hecht and Schwartz centers.
Adidas lost some ground and street cred in the past year when Notre Dame flipped to Under Armour, thus the thinking behind its aggressive bid to Miami. The company upped the ante $3 million recently to land Arizona State as the 11th school in its stable. Under Armour is hoping Miami becomes its ninth partner school. Executives know that if ground is to be made up on Nike, money must do the talking and the walking.
Nike does have one competitive advantage over Under Armour that likely will keep the scales from tilting too far away from its favor, beyond just its size. Its gear is sold in department stores as well as sporting goods stores, a haul that accounts for a quarter of its revenues.
The Adidas motivation of throwing cash at the Canes is a fading competitive threat. Last month its apparel sales fell 17% to $50 million and it actually ranked in fourth place behind The North Face, which is owned by VF Corp.
Nike's November apparel sales hit $325 million, while Under Armour sold $257 million.
The surprise may be that it's in footwear where Under Armour can gain, well, equal footing with Nike. Sales have been on a tear, rising at double-digit rates for years, but in more recent periods showing particular strength. They were up 50% in the third quarter, following a 34% gain in the second and a 41% jump in the first. Under Armour growth is on an upswing, with 18 consecutive quarters of 20% revenue growth and four consecutive quarters up 30%. International sales are up about 86% this year.
Fourty years ago, Nike founder Phil Knight wanted to take on Adidas. Now Adidas and Under Armour are gunning for Knight.
Altogether it's a $73 billion world of jerseys, hats and shoes.
Miami is more than happy to be a pawn.
Under Armour has just overtaken Adidas as America's No. 2 apparel and footwear company, surpassing $3 billion in sales in 2014. And the company is protecting its house here in Orlando, hosting and cultivating relationships with the stars of tomorrow, the elite high school players in America getting ready to populate the nation's college football rosters.
Both Under Armour and third-place Adidas continue to chase Nike for superiority in sports gear. But the University of Miami can tell you first-hand that it is game on in the race for attention.
Miami was the nation's first school to ink an exclusive marketing/apparel contract with an apparel company. The Hurricanes' deal with Nike 26 years ago was revolutionary. The Nike swoosh has been on the face of Miami T-shirts, hats and jerseys ever since. The partnership has had huge benefits for both the school and the company.
But Under Armour and Adidas are coming after Nike in a big way and appear days away from one of them beating out Nike for the Miami contract. The most recent Nike/Miami deal expires at the end of August and Under Armour and Adidas have submitted huge offers to UM to replace The Swoosh, which is sitting right now on an opportunity to match that will last just a few more days.
Miami Athletic Director Blake James is expected to announce the winner of the sweepstakes this week. Adidas is widely projected to get the nod.
There have always been benefits to being Numero Uno for Nike in the lucrative collegiate athletic business. Nike outfitted 45 of the 65 power conference teams last season. Adidas and Under Armour have always had to write bigger checks than Nike to gain traction.
But if Nike decided to get into a bidding war for the Hurricanes it would have far-reaching implications. Nike uses a slotting system and a sliding scale to determine what it pays schools. If it deviates from that structure, it eventually would have to pay every school more.
So The U is on the open market ready to reap the benefits of this jersey war.
Adidas, the quiet favorite, and Under Armour are believed to be battling neck and neck to win over Miami, both submitting offers that blew past the present Nike deal by a margin believed to be in the neighborhood of an additional $3 million per year.
The new deal, whichever way Miami goes, will put the Canes at the top of the ACC alongside Florida State, the place where The U belongs despite the decade-long struggles of the football program. The Hurricane brand still carries a lot of strength in the college football world and internationally.
FSU gets $4.4 million from Nike under its present contract. North Carolina gets $3.5 million. Under Armour, based in Baltimore, upped the ante at Maryland and landed the Terps for $4.3 million. Adidas landed North Carolina State for $3,025,000.
But to show you how the companies bargain hunt, Clemson right now is only getting $1 million from Nike. Adidas pays $8 million to Michigan. Notre Dame is believed to get $9-10 million from Under Armour, which was founded just 18 years ago in Maryland entrepreneur Kevin Plank's basement.
The bidding wars taking place can only benefit the schools involved, and now it is Miami's turn to cash in.
The money pays for uniforms, footwear and apparel for athletes and staff. It often can include gear for student sections and campus events, or even ushers at event venues.
In return, the companies get exclusive access to the fan base and the opportunity to generate lifelong sales across all channels - casual footwear, running, football, basketball and apparel. The contracts are coveted by the companies because the fan bases are young, affluent and socially mobile.
And there is plenty of cash to go around.
So those new Nike uniforms that you saw unveiled this year. Be prepared for them to go into the dumpsters outside the Hecht and Schwartz centers.
Adidas lost some ground and street cred in the past year when Notre Dame flipped to Under Armour, thus the thinking behind its aggressive bid to Miami. The company upped the ante $3 million recently to land Arizona State as the 11th school in its stable. Under Armour is hoping Miami becomes its ninth partner school. Executives know that if ground is to be made up on Nike, money must do the talking and the walking.
Nike does have one competitive advantage over Under Armour that likely will keep the scales from tilting too far away from its favor, beyond just its size. Its gear is sold in department stores as well as sporting goods stores, a haul that accounts for a quarter of its revenues.
The Adidas motivation of throwing cash at the Canes is a fading competitive threat. Last month its apparel sales fell 17% to $50 million and it actually ranked in fourth place behind The North Face, which is owned by VF Corp.
Nike's November apparel sales hit $325 million, while Under Armour sold $257 million.
The surprise may be that it's in footwear where Under Armour can gain, well, equal footing with Nike. Sales have been on a tear, rising at double-digit rates for years, but in more recent periods showing particular strength. They were up 50% in the third quarter, following a 34% gain in the second and a 41% jump in the first. Under Armour growth is on an upswing, with 18 consecutive quarters of 20% revenue growth and four consecutive quarters up 30%. International sales are up about 86% this year.
Fourty years ago, Nike founder Phil Knight wanted to take on Adidas. Now Adidas and Under Armour are gunning for Knight.
Altogether it's a $73 billion world of jerseys, hats and shoes.
Miami is more than happy to be a pawn.
