Under Armour Future Endorsement Pipeline Looks Promising

While Under Armour continues its dominance in athletic endorsements across several different sports, its roster in basketball is spread thin. Steph Curry as the company’s flagship athlete will surely usher in the new era of endorsers to keep UA relevant for years to come in the NBA. As individual player endorsements are becoming a more popular route for athletic apparel companies, Adidas let its NBA Jersey deal lapse to focus more on individual endorsers, the battle for future endorsements will play a key role in Under Armour's future success. Right now, the company is dominating in this arena.

UA Association = Future Endorsement Pipeline

The key to finding key future endorsers is to start at the youth level. It is very common for players to stay in same athletic apparel brands pipeline from a young age. While Under Armour sponsors just a handful of NBA players, it is sure to change with its UA Association. The company has gained a significant grassroots basketball presence with its Under Armour Association in the last 3 years.  The UAA had a great season last year, landing 7 teams in the top 15 in the country.  Last year, UA announced Steph Curry AAU team in the Bay Area, instantly making it one of the most sought-after teams in the country.

UA Association is now considered to be gaining ground on Nike’s EYBL league. Just like how Cam Newton transitioned from a UA college to a UA endorser with Auburn, this is an increasing trend in the basketball world as well. This is what makes a company's grassroots presence so important; what company top youth AAU players play on often determines what college they go to. Nike players often go to Nike schools etc. Players often stay in the same pipeline all the way up to pros. UA already has some of the highest regarded players in the country in its AAU pipeline, including 7-1 Thon Maker, #1 PG recruit Trevon Duval of 2017, and Josh Jackson who some have regarded as the next LeBron James. The battle for the basketball shoe market is critical to the future success of Under Armour.

While Nike continues to dominate this market, UA doing well at the grassroots level aims to disrupt Nike's dominance over the long term. Many top players are playing on UA-sponsored teams and will eventually go through the pipeline to become eventual UA endorsers. Adidas' current strategy is to diversify its sponsorships to as many players as possible and see what hits. Nike is sticking with the Blue Chip level endorsements, which can see it losing out on an underdog Curry type endorsement. While UA's current basketball roster is very thin, Curry leading as their flagship player will help bring in the future pipeline of endorsers under him, solidifying the company's presence in the NBA for the long term.

Under Armour endorsement success proves that the company will remain relevant in sports for the long haul, not just a current trend.