Under Armour signs Michael Phelps
Posted by ZA on February 19, 2010
Under Armour has signed swimmer Michael Phelps to an multiyear endorsement deal. The deal will have Phelps endorse Under Armour products that he wears to train “outside-the-pool”. It was structured that way because Phelps already has a lucrative endorsement deal with Speedo, whose swimsuits he wears during competitions.
This is a bold move for Phelps and Under Armour and appears to be a win-win. Under Armour picks up one of the most marketable, young athletes in the World for a pretty fair price (note: figures on the deal were not disclosed, but one expert estimated the deal at $5 million). Phelps insures that Under Armour will get plenty of coverage at the Summer Olympics, an event that has traditionally been dominated by Nike, Adidas and even Puma. This deal is also a great move for Phelps who already has the richest swimwear contract that Speedo has ever signed. It is like Phelps gets to double dip, by having two sponsors in the same genre.
[Assist: Sports Business Daily]