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Props To Whatever Admin Passed on Under Armour For Adidas

GenericYesMan

GenericYesMan

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Auburn's $10 million Under Armour stock deal keeps losing value | AL.com

Auburn's 10-year apparel deal with Under Armour that included $10 million in UA shares has lost more than 75 percent of its value in only two years.

At the time of the deal announced in Oct. 2015, Under Armour shares were trading for more than $100 a share. After another disastrous earnings report released on Oct. 31, Under Armour shares took another big tumble. Even factoring in Under Armour's stock split in April 2016, that's a significant loss of value for Auburn. The value of Auburn's UA stock is down to a little less than $2.3 million, according to AL.com estimates, after the initial $10 million in shares it received in 2015.

Under Armour missed its third-quarter sales estimate and CEO Kevin Plank told investors he expected a continued difficult sales environment in North America well into 2018.
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Auburn just lost $7.5M on their deal. Yikes.
 
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Hahaha. Excuse my regional stereotyping but the thought of someone explaining to a bunch of Auburn hilljacks how their stock is now less than their bagman budget is quite comical.

Miami would never do this. We probably demanded straight cash. Unmarked bills. We've been stupid with buyouts in the past but that school won't mess around in demanding money.
 
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Funny - I have an UA Miami sweatshirt. Weird. Don’t even recall how I got it.
 
AUcane said:
Funny - I have an UA Miami sweatshirt. Weird. Don’t even recall how I got it.
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Me too. I have some Miami gym type shirts made by UA too. There was even a photo of The Rock a few years back working out in UA Miami gear. I'm not sure if there are exceptions when it comes to apparel licensure or not because you still see non-Adidas Miami stuff at stores like ****'s. I think a company called Colosseum puts out polos and stuff.
 
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why the **** would you combine a uniform deal with essentially investing in a clothing company as a university? that seems beyond retarded. your endowment is managed by asset managers - but you directly buy $10MM in shares of some dumbass apparel company?
 
spacenegroes said:
why the **** would you combine a uniform deal with essentially investing in a clothing company as a university? that seems beyond retarded. your endowment is managed by asset managers - but you directly buy $10MM in shares of some dumbass apparel company?
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I was thinking it was just a sweetener to the deal but it looks like it was over 15% of the total compensation in their agreement.
 
We don’t know the actual details. At least I don’t.

We’re they actually given shares as part of their payment/deal or was it options?

It’s worth looking up for people that are actually interested.
 
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OriginalCanesCanesCanes said:
We don’t know the actual details. At least I don’t.

We’re they actually given shares as part of their payment/deal or was it options?

It’s worth looking up for people that are actually interested.
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L2VGszA.png


http://grfx.cstv.com/photos/schools...6/misc_non_event/Under_Armour_Terms_Sheet.pdf
 
OriginalCanesCanesCanes said:
GenericYesMan said:
OriginalCanesCanesCanes said:
We don’t know the actual details. At least I don’t.

We’re they actually given shares as part of their payment/deal or was it options?

It’s worth looking up for people that are actually interested.
Click to expand...

L2VGszA.png


http://grfx.cstv.com/photos/schools...6/misc_non_event/Under_Armour_Terms_Sheet.pdf
Click to expand...

Thanks for that.

Wonder if that’s $10 million in stock at market price? That would make a difference.
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That $40 mil in "product" has to be way closer to retail cost than at-cost too.
 
OriginalCanesCanesCanes said:
GenericYesMan said:
OriginalCanesCanesCanes said:
We don’t know the actual details. At least I don’t.

We’re they actually given shares as part of their payment/deal or was it options?

It’s worth looking up for people that are actually interested.
Click to expand...

L2VGszA.png


http://grfx.cstv.com/photos/schools...6/misc_non_event/Under_Armour_Terms_Sheet.pdf
Click to expand...

Thanks for that.

Wonder if that’s $10 million in stock at market price? That would make a difference.
Click to expand...

If they got the stock price on the day on signing (7/1/16), they got it at $36.26 a share, so about 275,785 shares.

Today that amount of shares are worth $2,989,509.

Brutal.
 
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spacenegroes said:
why the **** would you combine a uniform deal with essentially investing in a clothing company as a university? that seems beyond retarded. your endowment is managed by asset managers - but you directly buy $10MM in shares of some dumbass apparel company?
Click to expand...

Isn't it the athletic deparment making the deal though? So this money they bring in technically wouldn't be managed by the university.

usually the athletic deparment and the university are two separate entities. Its why athletic departments are paying the university for scholarships and **** (even thought they aren't actually a cost).

plus the school can still licence out the use of their logo. Its how DymeLyfe is able to use it, and I don't think they're affiliated with Adidas in any way. The thing is once they sign with adidas they wont licence to Nike or UA.
 
GenericYesMan said:
Auburn's $10 million Under Armour stock deal keeps losing value | AL.com

Auburn's 10-year apparel deal with Under Armour that included $10 million in UA shares has lost more than 75 percent of its value in only two years.

At the time of the deal announced in Oct. 2015, Under Armour shares were trading for more than $100 a share. After another disastrous earnings report released on Oct. 31, Under Armour shares took another big tumble. Even factoring in Under Armour's stock split in April 2016, that's a significant loss of value for Auburn. The value of Auburn's UA stock is down to a little less than $2.3 million, according to AL.com estimates, after the initial $10 million in shares it received in 2015.

Under Armour missed its third-quarter sales estimate and CEO Kevin Plank told investors he expected a continued difficult sales environment in North America well into 2018.
Click to expand...

Auburn just lost $7.5M on their deal. Yikes.
Click to expand...

UA is too expensive. and I don't wear it for that reason.
 
Are you rocking Russell athletic from Walmart then? Cause all the big brands are over priced at full retail. I just buy the **** on clearance cause I’m not paying $40 for a workout shirt. $12 at sams for clearance UA. Now we’re talking. Lol
 
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Objectivefan79 said:
Are you rocking Russell athletic from Walmart then? Cause all the big brands are over priced at full retail. I just buy the **** on clearance cause I’m not paying $40 for a workout shirt. $12 at sams for clearance UA. Now we’re talking. Lol
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Haha. I just asked in another thread when exactly did sports polos start costing just shy of $100?
 
Generally getting stock options instead of cash upfront is the better deal, you end up with an appreciating asset instead of just cash. Especially in the bull market we have been in over the past 8 years. Of course, if those stock options are for a failing company than the point is moot.
 
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