Under Armour, Inc. (NYSE: UA) is not seeing a Halo-effect from its latest athlete endorsement. CNBC has reported that Heisman Trophy winner Cam Newton of Auburn has signed an endorsement pact with the sporting apparel maker. The deal appears to have come after Under Armour was willing to make more guarantees than the much larger Nike Inc. (NYSE: NKE).
We have not been able to find any terms of the deal, and we’d expect for those to be kept private if possible. What was said by CNBC and other outlets is that this will be the largest ever for an incoming NFL rookie. What makes this so unique is that the NFL draft does not even take place until April 28 to 30.
A video article at NFL.com questioning his latest training moves is even preceded by an Under Armour video ad, a signal that Under Armour does not want to be outdone on its new pact.
So far there is nothing at all like a Tiger Woods or Michael Jordan impact. Under Armour shares are slightly negative in the red today at $69.75 while Nike shares are also in the red at $85.55.
JON C. OGG
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