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Kevin Durants Nike contract Original: 10 years @ $30 mil per year. Signed at end of 2014, 6 years remaining.$50 million early termination penalty. UAs

Kevin Durants Nike contract

Original: 10 years @ $30 mil per year. Signed at end of 2014, 6 years remaining.$50 million early termination penalty.

UAs potential offer:The total offer is $200 mil for 5 years,$100 mil signing bonus, then $20 mil per year.Plus, will pay early termination penalty

Under Armour:Estimated increase in sales for UA:?Year 1: $80 mil?Year 2: $75 mil?Year 3: $60 mil?Year 4: $60 mil?Year 5: $60 mil

Under Armour:Assuming the firms cost of capital is 8%, should you recommend that Under Armour offers Kevin Durant this deal?

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