Under Armour Strikes Out with MLB, Nike Notches Win

Ties to professional sports are huge for athletic brands. Along with providing exposure, they give brands an authenticity that connects with fans. That’s why this nugget of news involving two major athletic brands has deep-reaching implications.

According to a recent report, due to the brand’s ongoing financial difficulties,Under Armour is backing out of a deal it signed with Major League Baseball (MLB) in 2016 to start providing uniforms for the league in 2020. “Swooshing” in to “steal” the deal and get its insignia stamped on MLB team uniforms is Nike—with the new deal expected to be announced at the MLB all-star break in July.

Once a serious competitive threat to the Nike brand, Under Armour’s game has fallen off significantly in recent months. Nike stepping in to take over the MLB deal is the brand equivalent of a batter knocking a mistimed pitch deep into the bleachers just to remind a pitcher who’s still the top dog in the league. Ouch.