Why isn't Under armour sponsoring more top players?

Discussion in 'Pros' Racquets and Gear' started by Mansewerz, Jul 29, 2008.

  1. Mansewerz

    Mansewerz Legend

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    Seriously, they could do well with sponsoring. Right now, all i've seend is Ginepri and I think Andreev.
     
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  2. origmarm

    origmarm Hall of Fame

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    It's probably due to money they are willing to pay and the fact that most top tennis pros are on long term contracts
     
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  3. cknobman

    cknobman Legend

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    Under Armor is overpriced anyways.
     
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  4. LafayetteHitter

    LafayetteHitter Hall of Fame

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    After seeing Dog the Bounty Hunter wearing UA so much everytime I see the brand it just doesn't seem like tennis gear.
     
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  5. mattp420

    mattp420 Rookie

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    They also have Vera Zvonareva and I remember Michael Russel was wearing UA before.
     
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  6. rommil

    rommil Legend

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    They need to come up with other colors and style. Seemes like Ginepri has been wearing the same style/color(not in Wimby) for a long time.
     
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  7. Spatula

    Spatula Semi-Pro

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    If you look at their site they don't have a whole lot of variety in their lines right now. They need to really focus on the tennis division of their company and get some new players in it.

    I agree though, their products are a touch overpriced. At least they should match the Nike/Adidas price points.
     
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  8. morten

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    They do, and their products are great, what is the problem...? :)
     
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  9. CGMemphis

    CGMemphis Rookie

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    Its about diversity in the marketing and their approach to sports. They are a football company first, baseball second and everything else ties for 3rd.

    They may not be wanting to diversify so much and its hard to compete with the Nikes, Adidas' and so forth that own the tennis world. I dont doubt they will expand their focus, but their clothing line for tennis needs some addressing. Their shirts are not comfortable for me, I have two and they are dead last options for my tennis apparel.
     
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  10. babolat15

    babolat15 Hall of Fame

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    they already make soooo much money off of football, tennis is almost an afterthougt
     
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  11. Nellie

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    Underarmor sells products to boys/young men in the US based upon "hipness." This market could care less about any of the current tennis players.
     
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  12. bchamaki

    bchamaki Rookie

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    Under Armor and babolat shoes and rackets is awsome.
     
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  13. lacoster

    lacoster Professional

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    Zvonareva switched to K-Swiss early this season. They have Andreev, Craybas, and Navratilova.
     
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  14. theace21

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    Why should the spread themselves thin, seems like they pretty much have the market covered in football, and workout gear.
     
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  15. bluetrain4

    bluetrain4 Legend

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    Contrary to popular belief, very few pros make big bucks from clothing contracts. Only the top players or someone who has huge marketing potential (like Kournikova). Most players who have clothing contracts simply get free clothes, maybe some extra cash if they make a big run at a Slam.

    For that reason, I do wonder why UA doesn't at least approach more up-and-comers and players who are currently wearing other clothes but don't receive payments on top of that. Get the brand out there more.

    It's interesting to watch UA grow. Obviously, they are nowhere near the big boys, even if they have grown tremendously over the years. They are pretty ambitious though. Their golf stuff seems to be selling really well and I'm betting will see a UA-sponsered golfer win something big before a UA-sponsored tennis player.
     
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  16. LPShanet

    LPShanet Banned

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    Compared to the primary competition (adidas and Nike), they are a TINY company, even if they seem relatively large.

    They are growing rapidly, though. Six years ago, they had sales in the $20 million a year range. This year, they're estimated to be around $700 million, up from $310 million in 2006. That's overall sales, not tennis related. Still, both adidas and Nike are over $10 BILLION a year in sales! Since marketing budgets are generally calculated as a percentage of sales, they have a marketing budget that's less than 7% the size of the other companies. Furthermore, as a company whose equity is in team sports, tennis is a relatively small part of their marketing plan. End result is they simply can't afford to sign any top players, so they sign those who aren't of the level to get big contracts from the big clothiers. They also like to sign people who are in keeping with the brand image (athletic and explosive), and have the chance of pulling off the occasional visible upset. They are likely to expand their sponsorship efforts a bit in the coming years if tennis proves a profitable category for them. Jury is still out on that, though.
     
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  17. iLose

    iLose New User

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    I honestly don’t think they could get anyone other than Americans (yes I know Igor) but I feel like most people who play tennis think under armor is more football player “jockish” for lack of a better word. I mean the commercials have huge football players just yelling about protecting this house. I don’t know, I would think that my friends and I would be in their target tennis market (if the really even have one?) as we are all around 19, but we all almost feel as if it just too lame.

    Note: I have a 30 dollar tennis shirt from Under Amor from my high school team which is really really nice for playing in hot weather or anytime.

    AND about 3 different 90 dollar Lacoste tennis shirts that are not half as nice material when it comes down to how effective the shirt is.
     
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  18. Bogie

    Bogie Hall of Fame

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    they also have vladimir ignatik who was the #1 junior last year and is now working his way to the big times. he recently won a couple of futures and i think he has a VERY promising future ahead of him.

    [​IMG]
     
    Last edited: Aug 19, 2008
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  19. slkbassist

    slkbassist Rookie

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    Just wait. American Tennis professionally is at perhaps its lowest. But you still find courts packed in many places (at least in Florida)...in a few years there can be some new stars. If UA sees they can break Nike's stronghold like they did for football, UA will gain ground.

    Personally I find most sports gear overpriced, and wait for the the old models to go on sale...i mean honestly 60 bucks for a pair of tennis shorts?
     
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  20. william7gr

    william7gr Professional

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    Underarmor should stop making stupid commercials and sponsor more people
     
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  21. LPShanet

    LPShanet Banned

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    "stupid commercials" sell more clothes per dollar spent than sponsoring tennis players.
     
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  22. BLiND

    BLiND Hall of Fame

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    Your probably right, I've never heard of under armour, and I've watched Ginepri play, I didn't even realise he was wearing them, are they just in the US or something?
     
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  23. maximo

    maximo Banned

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    Under armour is mostly based in the US, but in UK aswell as i bought a pair of shorts from a local shop.
     
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  24. LPShanet

    LPShanet Banned

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    They're based in Maryland, and have been growing rapidly for over 10 years, but it takes time to take a bite of market share.
     
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  25. SempreSami

    SempreSami Hall of Fame

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    I've only ever thought of them as the brand that makes base layers, especially given their name.
     
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  26. maximo

    maximo Banned

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    IMO under armour are only good at base layers, everything else they make isnt great.
     
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  27. Racquet Man

    Racquet Man Rookie

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    Companies have strategic plans to maximize EBITDA and shareholder return. I have not personally seen their strat. plan, but can safely assume from what I have heard that tennis is not seen as an area of major growth and return for them and not a focus for them in their strategic plan.

    What I do know is they are focused on capitalizing on the excellent growth they have already had in their workout and football lines (baseball as well), and are expanding into footwear market. They already entered the footwear market by introduced a performance line of cleats (football and baseball) a few seasons ago, and are now targeting to take a segment of the share through their athletic (workout/running shoe) footwear line.

    Their tennis line is first rate quality and attractive. But, tennis is a niche market that is already crowded and simply not a lucrative enough for them to invest significant sponsorship dollars in tennis.
     
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  28. lacoster

    lacoster Professional

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    UA's 10K (financials) looks very promising. Before, they obviously only catered to the muscle bound football jocks, but they are already penetrating the golf and tennis market by becoming the "jock" alternative to the established "country club" brands, aggressively sponsoring super-fit jock types like Ginepri and Andreev, as well as Craybas and Navratilova. They have a good strategic plan for the next three FY's.

    Converse and Umbro had unsuccessful forays into the tennis market back in the 80's, but they had a poor strategic and marketing plans. Ironically, Nike bought both Converse and Umbro and are now operating as subsidiaries under the Nike umbrella.
     
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  29. Racquet Man

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    lacoster, have you actually reviewed UA's 3Ystrat. plan?

    I've appended a summary of their quarterly financial report can be accessed on the web. It seems to support what I said in my earlier post.

    Baltimore, MD (January 17, 2008) – Under Armour, Inc. (NYSE: UA) today announced preliminary financial results for the full year ended December 31, 2007.

    Based on preliminary estimates, the Company anticipates full year 2007 net revenues to increase approximately 40% to an estimated $605 million, exceeding the Company's previously provided outlook of $590 million to $600 million. The Company also expects 2007 income from operations to exceed the previously provided outlook of $81.5 million to $83.0 million, resulting in diluted earnings per share of approximately $1.03 to $1.04 for the full year. Inventory at year-end is expected to be in-line with the Company's previously provided estimates of a 5% to 10% increase from the balance reported for September 30, 2007.

    The Company has previously stated its long-term growth targets of 20% to 25% for the top and bottom lines. Based on continued strong consumer demand, the Company reiterates its outlook for 2008 net revenues and income from operations to exceed the long-term growth targets of 20% to 25%.

    The Company is planning a year-long brand campaign, which will be used as the platform for the launch of Under Armour's Performance Training footwear, and will include a 60-second TV spot in the upcoming Super Bowl XLII on Fox on February 3rd. The Company stated that the campaign would fit within its previously discussed guidance that marketing expenses would represent approximately 12% to 13% of 2008 net revenues. Based on the timing of the Performance Training footwear launch, the Company is planning to shift a substantial portion of its full year marketing spend to the first half of the year. As a result, the Company anticipates diluted earnings per share in the first half of 2008 to be in the range of $0.03 to $0.05.

    Kevin Plank, Chairman and CEO of Under Armour, Inc. said, "We believe the launch of our performance trainers is critical to the long-term foundation of the Under Armour growth story. We are confident that our innovative technology driven by insight from athletes combined with the consumer demand this campaign is generating will ensure its success."

    The Company will report the results of its fourth quarter ended December 31, 2007 on Thursday, January 31, 2008 at 7:00 a.m. ET. Under Armour management will host a conference call to discuss the results beginning at 8:30 a.m. ET.
     
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  30. lacoster

    lacoster Professional

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    Yes, I'm a retail market analyst and branding consultant. Most analysts predicted Steve and Barry's chapter 11 two years ago...
     
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  31. FreshStew

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    Under Armour is for football players!
     
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  32. toyota817

    toyota817 Rookie

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    ginipri is buff and he's cool
     
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  33. 0range

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    "Under Armour" is just not a cool name for sports clothing/products.
     
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  34. babolatking

    babolatking Rookie

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    they need to make actually good playing tennis shoes
     
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  35. Nanshiki

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    They don't pay players to wear it, because a lot of them do it for free (in the NFL and college football).

    They've even expanded into military clothing...
     
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  36. mattp420

    mattp420 Rookie

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    Sponsored by UA (all sports):

    * Igor Andreev
    * Alex Arias
    * Lance Berkman
    * Jeremy Bloom
    * Vernon Davis
    * Carl Edwards
    * Jeff Francoeur
    * A.J. Hawk
    * Delmon Young
    * Brandon Jacobs
    * Julius Jones
    * Ray Lewis
    * Nick Markakis
    * Kimmie Meissner
    * Eric Ogbogu
    * Cat Osterman
    * Dion Phaneuf
    * David Pollack
    * Brad Richards
    * Tim Hudson
    * Bob Sanders
    * Alfonso Soriano
    * Steve Spurrier
    * Joe Thomas
    * Tommy Tuberville
    * Jaden Mellick
    * Ryan Zimmerman
    * Jonathan Vilma
    * Mike Vrabel
    * Eric Weddle
    * Patrick Willis
    * Robby Ginepri
    * Cole Hamels
    * Paul Rabil
    * Alex Rioux

    http://en.wikipedia.org/wiki/Under_armour
     
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  37. Vermillion

    Vermillion Banned

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    tennis players too chubby
     
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  38. rosen88

    rosen88 Rookie

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    I am sponsored by UA here in Sweden. But they do not have the tennis stuff over here so I have to play in the training gear. But still i like it better than Nike or Adidas. But some UA tnnis clothes in Europe would be awsome! And ofcourse... UA, make a tennis shoe! The market needs it!
     
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  39. FreshStew

    FreshStew Rookie

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    Under Armour is for football players
     
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  40. bluetrain4

    bluetrain4 Legend

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    I have some really great UA tennis stuff. I think they have potential to at least get a sliver of the market.

    I know there are a lot of clothing brand loyalists on TW, but I can say that for nearly every major brand of tennis attire, I've gotten great stuff, and horrible stuff.

    If UA is every going to seriously sponsor a top player, they need a shoe to go along with the clothes.
     
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