Under Armour announced several new sponsorship deals in Europe in the last few days, but the biggest one has apparently yet to come. The brand is offering to take the place of Adidas as the sponsor of the famous Real Madrid football team for ten years after the present contract expires in 2020, according to reports in the Spanish press. They mention an annual fee of €150 million, nearly four times more than what the Big a is paying now and close to double the fee that Nike is currently paying for FC Barcelona.
The Real Madrid contract would give a big boost to UA's presence in Europe, where the brand is vastly under-represented, and support its diversification from American football into global football. Its five-year-old deal with the Tottenham Hotspur team in the U.K., which is reportedly costing it €15 million a year, would go to Nike once it terminates.
Adidas has already let Nike take over its Chelsea contract. It has been sponsoring Real Madrid since 1998, but it's still well equipped with high-ranking teams like Bayern München and Manchester United, a former sports marketing property of the Swoosh.
Besides, Adidas is said to be extending its contract with Lionel Messi, the star player of FC Barcelona, making it a lifetime deal similar to the $1 billion contract that Nike has with Cristiano Ronaldo, who plays for Real Madrid.
Meanwhile, UA has added Fraser Foster, the goalkeeper of the England and Southampton FC teams, to its roster of sponsored football athletes. UA is already the technical sponsor of the Southampton club from this season.
UA announced last Wednesday its partnership with Teddy Riner, the double Olympic gold medal winner and eight-time world champion in judo, who was previously sponsored by Adidas. Pointing out that this is the first of several “breakthrough announcements” around its presence in France, UA is celebrating its contract with the French athlete with a huge billboard in the central Les Halles district of Paris. It is meant to support Riner's unique training routine for the 2020 Tokyo Olympics as well as the imminent opening of UA's French headquarters, which will be run by Raphael Lefort.
While signing and negotiating all these European contracts, UA is trying to clear the air in the U.S. after its founder and chief executive, Kevin Plank, described President Donald Trump as “a real asset” for the country because of his expertise in business and his pro-business agenda. Responding to Trump's anti-immigration drive, Plank issued a statement to the Baltimore Sun, the daily newspaper of the company's hometown, where he stated that UA stands for “equality, diversity and opportunity for all.” He said it believes that “immigration is a source of strength, diversity and innovation for global companies based in America” like UA.
Plank added that UA plans to join “a coalition of companies” that will oppose any actions that would negatively impact its team, their families and its community. Two of its key athletes, Stephen Curry and Misty Copeland, had already voiced their opposition to Trump's policies.
