NBA
Nike’s Biggest Marketing Mistake: Losing Stephen Curry to Under Armour Cost $14 Billion
One of the dreams of any elite athlete is securing a sponsorship deal with a top sports brand. Such partnerships provide financial benefits and elevate an athlete’s global recognition. Among the leading brands, Nike has long been the dominant force in sports marketing, signing deals with icons like LeBron James, Kevin Durant, Tiger Woods, and Cristiano Ronaldo. Some of these athletes even secured lifetime contracts with the company. However, Nike made one of the most costly mistakes in sports marketing history by failing to retain Stephen Curry, a player who would become one of his generation’s most influential basketball stars. This oversight allowed Under Armour to capitalize on Nike’s misjudgment, turning Curry into the face of its brand and doubling its company value from $14 billion to $28 billion.
How Nike Lost Stephen Curry
During his college years at Davidson College, Stephen Curry was a rising star, averaging 28.6 points per game in his final season and leading the NCAA in scoring. He wore Nike shoes throughout his college career, and the company even employed his godfather, Greg Brink. Nike recognized Curry’s potential and signed him to a contract in 2009, the same year he was drafted 7th overall by the Golden State Warriors.
By 2013, Curry was emerging as an elite NBA player, setting the single-season record for three-pointers made and delivering a 54-point performance at Madison Square Garden. His contract with Nike expired that year, allowing other brands to sign him. Nike, however, had the right of first refusal, meaning they could match any offer Curry received.
Unfortunately, the company’s negotiation tactics and lack of respect cost them dearly.
Nike’s Disastrous Presentation
Nike’s meeting with Stephen Curry, held at the Golden State Warriors’ offices, was riddled with critical errors that signaled the brand did not value him the way they did stars like Kobe Bryant, Kevin Durant, and LeBron James.
The first mistake was mispronouncing Stephen Curry’s name, repeatedly calling him Stephon instead of Stephen. No one in the room corrected the error, which did not go unnoticed by Curry and his father, Dell Curry, a former NBA player.
The second mistake was a PowerPoint presentation that contained Kevin Durant’s name, an apparent copy-and-paste error that demonstrated a lack of attention to detail. Nike also provided youth development camps for rising stars like Anthony Davis and Kyrie Irving, but not for Curry, making him feel overlooked.
Despite these missteps, Nike offered him a $2.5 million yearly deal. But by then, Curry and his father had already decided that his worth was far more significant.
Under Armour’s Gamble Pays Off
Under Armour saw an opportunity where Nike failed. The company offered Curry a $4 million per year contract, which Nike had the right to match—but declined. At the time, Curry was still an unproven playoff performer, and injuries had limited him to just 26 games the previous season. However, Under Armour took the calculated risk, believing in his potential.
It turned out to be a historic decision. Curry led the Warriors to four NBA championships (2015, 2017, 2018, 2022), won multiple MVP awards, and became one of the most marketable athletes in the world.
As a result, Under Armour’s stock price skyrocketed from $47 to $120, and its total valuation doubled from $14 billion to $28 billion. Curry’s success also attracted other major athletes to Under Armour, including Jordan Spieth (golf) and Bryce Harper (MLB).
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Curry’s $1 Billion Deal and Under Armour’s Rise
Recognizing Stephen Curry’s immense value, Under Armour locked him into a long-term contract through 2024, with incentives that could reach $1 billion. The brand even made him a co-owner by granting him equity in the company.
Thanks to Curry’s influence, his signature shoes are now the second-best-selling in the U.S., trailing only Michael Jordan’s Air Jordans and surpassing those of LeBron James, Kevin Durant, and Kobe Bryant.
Nike’s $14 Billion Mistake
Nike’s decision not to match Under Armour’s modest $4 million per year offer will go down as one of the biggest marketing blunders in history.
The company essentially “threw away” $14 billion, as Curry’s influence transformed Under Armour from a niche brand into a global powerhouse in basketball and sports apparel.
More than a decade later, Nike executives must still regret letting Curry slip away, all because of a poor presentation, a mispronounced name, and a failure to recognize his value.
