Marvin Bagley III, a ‘Nike kid’, to sign endorsement deal with Puma

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In a somewhat surprising turn of events, Marvin Bagley III will reportedly sign an endorsement deal with Puma in the NBA.

It’s a five-year deal, according to reports, that will pay Bagley and his family quite a bit of money and will allow them to fund an AAU program for Bagley’s younger brother. That program will be coached by Marvin Bagley Jr., and that gets to the heart of what makes this decision so surprising.

Bagley III has always been considered a “Nike kid”. He played for Nike AAU programs throughout his high school career. The last two years, his father ran the program that he played for, originally called Phoenix Phamily but eventually changed to Nike Phamily. That meant that Nike was able to legally pay Bagley Jr. a significant amount of money to fund that program. Eventually, Bagley would up enrolling at Duke, one of Nike’s flagship college basketball programs.

This is not the way that it is supposed to go for a shoe company like Nike. The reason they spend as much money as they do in the youth ranks is to keep as many kids as possible loyal to the brand. It’s fairly easy to figure out who will end up having a chance at being an NBA player as early as 15 years old, but what’s harder to do is to predict who will actually be able to move product. Did anyone think James Harden or Damian Lillard would be worth a signature shoe? So these shoe companies will spend a relatively small amount of money to fly those kids around the country during their high school years, keep them decked out in their gear and hope that lottery ticket eventually pays off.

What is a couple hundred thousand dollar investment when the payoff is hundreds of millions of dollars in shoe sales? All you need to do is land one Kyrie Irving or Kevin Durant to make the math work.

But that isn’t all that the shoe companies are looking for here.

With the amount of money that they have invested in sponsorship deals with these schools, they need to protect that investment. We saw it with Adidas and Louisville. They funneled $100,000 to Brian Bowen, a Nike kid, to get him to an Adidas school not because they thought he would end up being an uber-profitable spokesman but because they needed to protect their investment at the college level.

So while it’s easy to look at this and same that Bagley’s time spent at Duke helped him get a big, fat shoe contract, I think it’s the other way around. He helped Nike — without getting his market value — during his one season at Duke, and what it got him was a shoe contract worth roughly $1 million a year, according to Oregon Live.

Either way, the fact of the matter is that Bagley’s value to these brands is no different now than it was when he was playing for the Blue Devils.

Why is it only now that he’s allowed to cash in on it?