The (Real) Story Behind Stephen Curry’s Breakup With Under Armour
Stephen Curry's 2023 deal with Under Armour included $75 million in future equity. But with Under Armour's stock down 50%, Curry is leaving $37.5 million on the table to become a sneaker free agent.
When Under Armour announced a new long-term contract extension with Stephen Curry in 2023, Under Armour founder Kevin Plank referred to it as a “lifetime deal.”
The plan was simple: Under Armour wanted to leverage Curry’s global fanbase to create a sub-brand similar to the Jordan Brand at Nike. By investing more resources in the Curry Brand, Under Armour could expand beyond the performance basketball market into the broader lifestyle category, potentially unlocking millions of new customers by selling everything from athletic shoes and shorts to golf polos and hats.
At the time, this was seen as a win-win for everyone. Under Armour could accelerate its turnaround by partnering with a generational talent like Curry to move past its performance-only reputation. And for Curry, Under Armour would provide him with the infrastructure necessary to scale the brand, while enabling him to maintain a level of ownership no other NBA player has received since Michael Jordan’s deal with Nike.
However, things don’t always go as planned. Just two years after signing a contract extension that insiders framed as a lifetime deal, Stephen Curry and Under Armour have officially ended their relationship. As part of the contract termination, the Curry Brand will now operate independently, with Under Armour agreeing to transfer ownership of the brand’s logo, trademarks, and intellectual property to Curry (for free).
One of the NBA’s best and most marketable athletes becoming a sneaker free agent is obviously a big deal. But if we are being honest, that isn’t even 1% of the story.
So for today’s newsletter, we’ll cover the complete rise and fall of Stephen Curry’s time with Under Armour, including how the brand stole him away from Nike, why his shoe sales started to decline during the height of his career, the financial terms of his various contracts with Under Armour, and what Curry might do with his brand next.
Even if you don’t follow the NBA, this is something everyone should care about. Not only does Stephen Curry’s time at Under Armour provide a great case study into how popular athletes work with challenger brands, but the various financial components (stock compensation, etc.) paint a picture of the risks/rewards superstar athletes face.