Analysis by Sylvia Lee in SRM 435 (section 2)
Recently, Notre Dame and Under Armour signed the most lucrative apparel and shoe deal in college athletics history. The agreement is over a 10-year period worth about $90 million in cash and merchandise. Currently, Notre Dame has a deal with Adidas, which will be ending in June.
In addition to the $90 million deal, the agreement will also allow Notre Dame to take some of the cash in company stock, potentially making the payoff even greater. Because of this, “shares of Under Armour were up more than 3 percent on the day and 80 percent over the last year.”
Notre Dame fans are worried that Under Armour will change the traditional uniforms, but Kevin Plank (CEO of Under Armour) ensured the fans that they will not make any major tweaks. The deal also does not allow Under Armour to get any signage in the stadium. Since 1930, Notre Dame’s stadium has been free of all advertisements and does not have a video replay board, and they will continue on with this tradition.
From a sport-marketing standpoint, I believe this is a huge opportunity for Under Armour since they are continuing to compete with other sporting apparel companies such as Nike and Adidas. With every Notre Dame football game being nationally televised, Under Armour will get a great amount of exposure. Because of this new deal, die-hard Notre Dame fans, students and faculty of Notre Dame could possibly also to become loyal to this brand in a sense that it may make them feel a connection with the football players and program. With about a quarter of the United States population being a college football fan, there is no doubt that Under Armour has gained a tremendous amount of publicity after signing this $90 million deal with Notre Dame.
This article is related to this sport marketing and sales course because it is about the benefits a sports team and a company gained by signing a sponsorship deal. Under Armour will get a lot of national television exposure during college football season, and Notre Dame will be getting a total of $90 million in cash and merchandise.
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Analysis by Titus Till in SRM 435 (section 2)
On Tuesday, January 21st, 2014, Under Armour and Notre Dame announced to the world their new deal, which is arguably one of the biggest contracts in college sports history between a University and another big name company such as Nike, Adidas, Reebok or Under Armour. Notre Dame’s previous deal with Adidas was the richest in college sports with the 10-year $82 million contract that will soon expire. Notre Dame’s new contract is now being referred to as one of the most valuable shoe and apparel contracts in the country. This 10-year deal will begin as soon as the contract with Adidas expires in June. The value of the deal was not revealed by Notre Dame or Under Armour, but is estimated to be worth a whopping $90 million over the next ten years according to ESPN reporters. Notre Dame will be joining a plethora of schools across the country who have a school-wide deals with Under Armour including company owner, Kevin Plank’s, alma mater Maryland, Texas Tech, Boston College, Utah, Temple, Northwestern, South Florida and South Carolina. For the fans that may have concerns with having changes made to the historical uniforms that Notre Dame has worn for years, Plank says not to worry. Also, Under Armour will not have any signage within Notre Dame Stadium in order to keep the traditional atmosphere, which excludes any advertisements and even a video replay board within the stadium.
This deal ultimately benefits both Under Armour and Notre Dame from a marketing standpoint because of the huge fan base that both Under Armour and Notre Dame have accumulated over the years. With these two entities joining forces, more awareness of both brands will grow. Not only does this create more buzz around the Notre Dame community but also will generate more cash through Under Armour’s company stock. As of 12:30 p.m. ET on the day that this deal was announced the shares for Under Armour went up more than 3 percent and up more than 80 percent over last year. I believe that this deal will generate more sales from Notre Dame fans wanting to be apart of the new change going forth. As this relates to our class, this is a perfect example of a successful deal for both parties involved. If all deals could sound this good on paper the world would be a better place but unfortunately not every company has a growing name like Under Armour and not every school has a tradition like Notre Dame. Whoever came up with this idea to merge this school and this company was a genius from a marketing standpoint.
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