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Thursday, November 10, 2005

"New Fabrications" v8,issue 26, p10 by Wes Layton

Under Armour is the hottest sport aparel brand for the past three years, so its no wonder that they would be in negotiations with getting an NFL license, and these two parties have been talking for some time now. And it might sound like an easy take to come into an agreement with the NFL, but that is not the case. Since rights for the "performance apparel" category are under Reebok's current NFL master apparel license, you would think that Under Armour would not be able to be apart of that, but since Adidas recently acquirred Reebok for $3.8 billion, everything is on the table because no final contracts have been set as of late. And it's just like thhe NFL to do what they do best and that is suck the bone marrow out of companies it does business with said one senior executive at an NFL licensee. And for this, the NFL may be leaning torward the Under Armour Adidas deal because it would most likely yield more than the current Reebok contract alone. All of this money, contracts and licenses' stays up in the air, but soon we should know what exactly is going to happen with Reebok, Adidas, Under Armour, and the NFL in the near future and we can expect these contracts to exceed the $100 million mark. We'll all just have to wait and see.