International WSJ Insights
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Wednesday, December 7, 2016
Under Armour Signs Deal to Supply MLB Uniforms
Updated Dec. 5, 2016 4:39 p.m. ET
Under Armour gains approval from Major League Baseball to put the company's logo onto the front of professional sports uniforms starting 2020. An upcoming retail giant that markets off major professional sports athletes such as Stephen Curry and Cam Newton, has taken a very bold step in trying to market their brand. Under Armour reached an agreement with Fanatics to split this 10 year deal, where Fanatics will generate a majority of the profit under this partnership. In this agreement, Under Armour will be responsible for the design and manufacturing of the jersey and apparel worn by the players and Fanatics focus more on manufacturing and selling products to customers. The U.S. professional major leagues are set for a major change with Nike taking over the rights to the NBA and Adidas taking over the NHL, Under Armour couldn't fall behind from its major competitors.
By capitalizing on the third ranked apparel sales of MLB (only the NFL and college sportswear are 1 and 2), Under Armour and Fanatics are set to potentially make large sums of profit. This can be seen as a very strategic move by Under Armour to get their brand out to customers who only shop Nike and Adidas. Marketing to the 3rd most televised professional sport in America, Under Armour will have a lot of work to do if they want to expand their customer base and appeal to whats trending.
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