As the Utes pivot from Under Armour, internal reports reveal a strategic pursuit of global giants to secure long-term stability and modern branding in Salt Lake City.
The University of Utah continues to make headlines regarding offseason moves.
Earlier this month, Utah officials finalized a private equity deal with New York-based company Otro Capital. That news was met with mixed reviews, but the motivation behind it is on-brand with another announcement. The Utes signed a partnership deal with Adidas, replacing Under Armour after 18 years of being the school's official outfitter.
The moves are about creating a landscape of sustainable long-term success. Both are conceptually logical if all goes according to plan. Utah and Adidas reached a 7-year deal to supply all footwear, uniform, apparel and sideline gear beginning in July 2027. The school surveyed the marketplace and heard offers from Nike and others before landing with Adidas.
Under Armour, once viewed as an industry threat to companies like Nike and Adidas, is now struggling to remain relevant. At its peak, beginning with the ‘protect this house’ era, the company seemed to have its hands on everything. They also tapped into endorsements with athlete deals that included Steph Curry, Tom Brady and Michael Phelps. However, it never seemed that the promotions and design departments ever got on the same page.
The signature line from Curry never reached expectations due to a lack of creativity. After the initial release in 2015, Under Armour saw a 95% increase in footwear sales. However, that would be short-lived. By 2017, that hype had all but died. Even today, there is not a single Curry model that is celebrated among sneakerheads. Curry left Under Armour and signed with Chinese retailer Ni-Ling last month.
Under Armour as a brand is not dead, but the regression as a perceived major player in the space is noteworthy. Notre Dame is the brand's biggest client as of now.
What's Adidas' future outlook vs. others in the market?
Conversely, Adidas has an almost inverse story. The German-based company has been a major player for longer than most sports fans have been in existence. Due to the success of Nike for the last 30-40 years, the perception has been that Adidas takes a back seat to Nike. Which has been true in certain lanes, but not all of them.
While Nike has owned the basketball genre and has been a top three retailer for running products over the years, they're not the king of the hill in everything. Adidas is dominant in the world of international soccer as well as track and field. The major global brand owns entire sports outside North America. A beneficial detail to a program like Utah seeking sustained success.
Adidas as a brand is a predator lying in the tall weeds. Like a wild cat waiting for its prey to show a sign of weakness or vulnerability. The perception is that Nike is the king of the jungle. However, their control over that market share is shaky at best. The brand has struggled for some time trying to maintain a too big to fail status.
While Nike has been chasing trends, inflating their market, alienating long-term consumers and allowing a third-party market to ruin their customer base, Adidas has simply kept grinding. While they don’t have the trendy appeal of Nike, Adidas kept putting out quality products and chose not to play the game Nike has spent the last 15 years perfecting.
Every single Nike signature line has regressed over time. The days of mainline Jordan's, Penny's, Griffey's and Barkely's have been replaced by lesser. The lines for Luka Doncic, Jayson Tatum or Zion Williamson don't share the same mass appeal.
Adidas has quietly put together a scary international roster
Just in the world of soccer alone, they've signed the greatest to ever play and the best phenom (Lionel Messi and Lamine Yamal). In basketball, Anthony Edwards, James Harden, Damian Lillard and Donovan Mitchell are on the roster. While Nike still owns the basketball market, mostly due to the success of the Jordan brand, the Adidas AE line was the highest selling non-Nike signature basketball line since its release in 2023.
Adidas is also competitive in other related spaces. The key sponsor of major sporting events, various camps and developmental events. To put this into a completely different context. Nike is a high-risk cryptocurrency investment, while Adidas is a low-risk/high-yield long-term return. Signing a deal with Nike would have been big news on the surface, but the Adidas deal makes more sense for Utah’s long-term interests.
The bottom line is Utah is making moves. You can't make everyone happy, but credit to Utah president Taylor Randall and athletic director Mark Harlan. The duo is trying to position the Utes for the future of college athletics in whatever form that takes.
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