Stephen Curry's Sneaker Crisis Shook the Industry

Stephen Curry's separation from Under Armour has shaken the sports shoe industry. Right after the split, his wearing of Nike could herald a larger change. Curry's time with Under Armour once carried the promise of building a Jordan-like empire. However, according to sources, years of inadequate investments, lower-than-expected sales figures, and the brand's failure to fully enter the fashion world negatively impacted this relationship.

Under Armour expects its basketball revenues, including Curry's segment, to reach approximately $120 million this year. This figure represents a small fraction of its estimated $5 billion in total sales. The end of the agreement will result in around $100 million in restructuring costs as Kevin Plank tries to revive the company.

The developments at Under Armour have been leading up to this point. Plank returned as CEO earlier this year and redirected the company back to the field sports that fueled its rise. At the same time, he controlled costs by reducing the workforce, automating more processes, and decreasing the number of products by 25%. While basketball was positioned as a growth engine, Curry, despite holding the title of president of Curry Brand and receiving $75 million worth of stock as part of his extended agreement in 2023, has become less central to the brand. These shares would be adjusted prorate in the event of an early end to the relationship, going into effect in 2029.

Curry's last shoe will be released in February, and the remaining products will be sold until October, giving both sides an opportunity to focus on aggressive growth.

Now, a real bidding war may begin. Industry experts believe that Nike, Adidas, and Puma will seek new agreements. Additionally, brands like Anta, Li Ning, and New Balance are expected to be active in the basketball market as well. Nike's past incident of mispronouncing Curry's name and showing slides belonging to someone else at a meeting adds a different drama to this competition. Curry, being a notable star with expectations of playing for another four or five seasons, wishes to sign with Nike. Following a better offer, Caitlin Clark chose Nike, while stars like Victor Wembanyama and Shai Gilgeous-Alexander are already part of this brand's roster. The race for Curry's signature shoe could shape a new era in basketball marketing. Curry summarized the Nike shoes he wears in two words: new beginnings.