Clothing maker Under Armour (NYSE:UAA) rolled out a new deal that would bring Stephen Curry even more into the Under Armour fold than he already was. The deal sees Curry named President of the Curry brand, giving both parties fresh opportunities. Investors, however, were clearly nonplussed; Under Armour shares were up just 0.11% in Thursday’s trading.
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The move calls for Curry and Under Armour to expand the Curry brand beyond basketball, reaching out to not only women and youth demographics but also to different categories outright, like golf. Curry will be tasked with improving the brand and stepping up the number of athletes willing to work with Under Armour. Terms of the deal weren’t revealed. However, reports suggest that the Golden State Warriors player could be in line for one of the biggest endorsement deals ever inked as a result.
In fact, some aren’t convinced this is a good move. A recent Deadspin piece noted that Steph Curry was poised to make a deal with the “…worst sports apparel company of the past 20 years.” Worse, the deal was “…clearly made with the intent of turning the Curry Brand into some sort of knockoff Jordan Brand…” However, the two are largely joined at the hip; not only do they have a 10-year history together, but reports suggest the deal will go beyond Curry’s tenure in the NBA altogether.
Analysts, meanwhile, have mixed feelings about Under Armour as a whole, which is considered a Moderate Buy based on eight Buys and seven Holds. However, there’s benefit for the adventurous in Under Armour stock; specifically, 33.98% upside potential thanks to the average share price of $12.46.
