MMA Universe

Jonathan Snowden of BloodyElbow has written an interesting sponsorship piece that argues the combination of the UFC’s sponsorship policies and the bad economy are hurting the fighters. He also suggests that this confluence of factors has perpetuated the fight camp issue over the last year.

As the UFC continues to record record profits at events around the world, it’s never been harder, in the post Ultimate Fighter world, for a fighter to secure a lucrative sponsorship deal. This is particularly true for fighters outside of the Zuffa empire – and it’s not just a product of an economy staggering and reeling like Zab Judah after a Kosta Tsyzu flurry. It’s part of a calculated campaign by the UFC to hurt its competition. Unfortunately, the primary victims are the men and women trying to make a living in the cage.

In many ways, this is just a reality of today’s business climate. While we often think of the UFC as an established monolith, the Fertitta brothers have actually owned the company for less than a decade. It’s still a very young business, run by the hyper-competitive Dana White. He wants the UFC to be associated with MMA the way professional football makes fans immediately think “NFL.” And he’s not afraid to play hardball with sponsors and rival fight promoters to get there.

“As the market collapses and the major sponsors keep cutting back, television fighters are losing their leverage. Guys without names are being pushed out of the market entirely,” one agent told Bloody Elbow anonymously for fear of retribution. “Clients outside the UFC are in even worse shape. Apparel companies are walking on eggshells and essentially won’t touch anyone outside of the UFC they don’t already have a deal with. No one wants to get banned.”

Payout Perspective:

I agree with the basic argument that the combination of the UFC’s sponsorship policies and the current economy have hurt the fighters financially. I also concur that this financial instability has helped to perpetuate the fight camp mentality that is currently wreaking havoc with many UFC divisions. However, I feel as though the article from Snowden unduly frames the UFC as the greedy bad guy in this situation.

It should be pointed out that official UFC sponsors are paying millions of dollars every year for a very particular, and often exclusive, set of rights. What other brands are doing through the sponsorship of fighters inside the Octagon is tantamount to ambush marketing. In that sense, the UFC is justified in charging the excess sponsorship fee as a means of curtailing these ambushing strategies, not of punishing or harming the fighters.

Tapout has become synonymous with the UFC by virtue of its long-held official sponsorship (essentially ownership) of the apparel category. Yet, if we were to erase all memory of Tapout from our collective brains and insert them as official sponsor today – given the current UFC sponsorship climate – does anyone really think Tapout would have a snowball’s chance in hell of becoming as strongly associated with the UFC? No, absolutely not, and that’s the concern here. The level of confusion that exists as the result of ambushing may really hinder a brand’s ability to collect ROI/ROO. This, of course, then has some bearing on the ability of the UFC to solicit sponsorships across its official categories.

However, it’s also fair to acknowledge that the UFC has been less than consistent on this front. Bud Light is the UFC’s largest corporate partner and official beer sponsor, but the UFC has in recent years signed both Miller Lite and Mickey’s Malt Liquor to sponsor its TUF program on Spike TV. The same can be said for Xyience and AMP Energy or BSN and MusclePharm.

The Fighter Sponsorship House of Cards

The ability of brand’s to collect an ROI/ROO is also the reason I believe fighter sponsorship is a house of cards waiting to collapse. Yes, fighter sponsorship has played a pivotal role in helping to support fighters in the early years, but there simply isn’t a strong enough return under the current model to justify the investment. It’s not just a case of the economy being tough, either. It’s a case of the sponsorship industry waking up and finally understanding that this 1980′s model of sponsorship of cash for signage is absolutely ridiculous.

Investors have seen the success of the UFC or Tapout and figure they can achieve something similar. Unfortunately, it’s not that easy. ABG’s acquisition of Tapout, Hitman and Silver Star is just the start of what will likely be a great deal of consolidation in the industry over the next few years. Some of these brands will be purchased by larger holding companies in order to gain market share, capitalize on economies of scale, and accumulate negotiation leverage. Many of the others will close up shop because they can’t differentiate their brand from the plethora of competition.

The brands that do survive are going to be the ones that figure out how to differentiate. Here, I do see a role for fighter sponsorship, but it’s likely to be something far closer to the contemporary endorsement agreement that brands have with today’s top athletes. The brand will pay for likeness rights and commitments to advertising, a set number of appearances, and specific social media interaction with the brand. Any sort of fight night signage will probably end up being a throw in or small percentage of the overall deal.

Why? The value in sponsorship comes from the generation of repeated impressions with an audience across a host of different message channels. The fighter’s appearance on a televised card with minuscule logos on his advertising banner or fight shorts simply is not enough to generate material ROI; and if that’s all the fighter is doing for the brand, there’s likely to be very little ROO, either.

The brands that find a way to create an integrated marketing strategy and then incorporate the fighter into that strategy will be most successful at leveraging his abilities to gain traction with the consumer.

Before they enter the octagon at UFC 124, pay attention to the walk out of Georges St. Pierre and Josh Koscheck as they will be wearing t-shirts of their respective sponsors: Affliction and Dethrone.

The GSP shirt is touted as a limited edition Affliction shirt with only 500 made. With a price point of $57.99, its more than buying the PPV (if you purchase the PPV on DirecTV HD – $54.95).

Josh Koscheck’s  Dethrone “walkout t-shirt” is not a limited edition, but comes in all black and all red (pictured) and has a “Kos” logo. Koscheck’s shirt is “reasonably” priced at $27.99.

Payout Perspective:

Similar to replica jerseys in team sports, for fight fans, t-shirts are a practical way to support your favorite fighter. Although many people do not like the huge designs, depictions of destruction, skulls or devils, I expect many fans wearing Affliction and Dethrone gear at the fight on Saturday. As for the two shirts above, I think the price point for GSP’s t-shirt is too expensive for an average MMA fan. Even a $28 Koscheck shirt seems a bit high, but is much more manageable on the wallet.

It would be a nice coup for Dethrone if it could claim to have the UFC Heavyweight Champ and the UFC Welterweight Champ. Possible slogan: “The brand of champions”?

*Note: I realize GSP may be wearing his gi during the walkout, but he should have his shirt on at the end of the match.

Silver Star Casting Company has been making waves recently by sponsoring some of the UFC’s most prominent fighters, but it looks to make a splash of another kind with the debut of its MMA certified fight gloves.

Silver Star Casting Company Debuts Knockout Round of MMA Fight Gloves

 

(IRVINE, CA) – Silver Star Casting Company enters the sports equipment market with the debut of technical MMA fight gloves in February 2010.

 

The lifestyle brand that put a stranglehold on the MMA apparel market with their signature walkout tees for champions such as Anderson Silva, Lyoto Machida, Georges St. Pierre, Rashad Evans, and Wanderlai Silva has taken the next step by entering the sports equipment market, , Silver Star has blended their notorious graphics, edge and tattoo style to create a collection of technical MMA fight gloves. The gloves are specifically designed for MMA training and fighting, and are the first fight gloves to feature full-color, graphic details. Wanderlai Silva broke the gloves in at a recent training session and photo shoot in Las Vegas.

 
With knuckle-tats, skulls and spiderwebs, the Silver Star MMA fight gloves are commission approved and MMA specification and certified. Made with tapered, piped fingers, these traditional style MMA gloves feature an open palm for full mobility and grip with a double wrap-around hook and lock velcro closure. Available in leather or synthetic leather. Sizes range S/M and Large/XL.

 

Payout Perspective:

Silver Star currently offers t-shirts, shorts, headwear, jewelry, accessories, and a women’s line, so the addition of the gloves pushes it a little closer to competing with Tapout in terms of sheer product variety. However, it’s got a ways to go in terms of brand equity within the MMA market. Not to mention that it claims to be paying its fighters more than anyone else in the business, which leads me to question how much of a solid foundation they’ve managed to build.

Bruce Buffer, the long-time ring announcer for the UFC, has officially signed on to be the newest brand ambassador for the Silver Star clothing line:

(IRVINE, CA) – Main “Voice of MMA” for the Ultimate Fighting Championship main events, Bruce Buffer, has inked a deal with Silver Star becoming the heavy-hitting MMA apparel brand’s official ambassador, a deal that includes an upcoming signature Bruce Buffer tee by Silver Star.

 

Buffer, first began at UFC 8 and has announced every show for the UFC since UFC 13, plus K-1 kickboxing events, Abu Dhabi Submission Wrestling Championships, HBO Boxing and many other MMA events internationally. In addition to hosting the popular “IT’S TIME!” life-styles radio show on BufferZone.net, Buffer is also a world-ranked poker player on the professional circuit who has been seen on ESPN’s World Series of Poker Main Event and placed 6th in Season 3 of the World Poker Tour and is a “Pro Player” for Full Tilt Poker. Aside from his love of the UFC and MMA, he is also an avid surfer and works in many areas of sports and entertainment.

 

I wanted to align myself with a brand that’s worn by champions and coveted by fans,” said UFC announcer, Bruce Buffer. “I respect the true spirit of sportsmanship fueling Silver Star and its athletes and I am proud to support the line, which I feel is the finest designed clothing line available to the fans of MMA today and for many years to come. I work with only the best and what they have planned for the future is awesome so I look forward to being an integral part of their ongoing success in their varied lifestyles marketplace.”

 

Buffer’s Silver Star ambassadorship marks the fusion of the most recognized voice (and face) of MMA with the most recognized and sought-after clothing brand in MMA.

 

Bruce is the perfect choice to represent our company,” said Silver Star president and CEO, Luke Burrett. “With Bruce’s charisma and his distinction as the voice of the UFC, his support of Silver Star carries a tremendous amount of weight in the MMA industry.” 

Payout Perspective:

Silver Star continues its assault on MMA with yet another related signing. In the last two months alone the company has picked up the likes of Lyoto Machida, Forrest Griffin, Jon Jones, and even boxing’s Manny Pacquiao. The company is also the main graphic tee sponsor for both fighters in UFC 108’s main event (Rashad Evans and Thiago Silva).

It remains to be seen exactly how involved Buffer will become, aside from his new signature t-shirt, but you can bet on his casual wardrobe now containing a great deal of Silver Star attire.

Silver Star adds Wanderlei Silva to its list of recent high-profile signees – a list that includes Lyoto Machida, Forrest Griffin, Anderson Silva,  Rich Franklin, Jon Jones, and others.

 (IRVINE, CA) – Wanderlei “The Axe Murderer” Silva has signed a sponsorship deal with Silver Star Casting Company for a clothing collection that will include a UFC 110 signature walkout tee for Spring 2010.

 

With the majority of his fights ending in knockouts or referee stoppage, Silva’s ruthless, street-fighting style has earned him the nickname “Axe Murderer” – a moniker and image that sits well with the edginess of the Silver Star brand.

 

“Silver Star is honored to be working with one of the most aggressive fighters in the sport,” says Silver Star president and CEO, Luke Burrett. “Wanderlei is a force to be reckoned with and always delivers fans an adrenaline -pumping fight.”

 

“I am excited to work with such a successful brand,” says Wanderlei “The Axe Murderer” Silva. “I really like the quality of the product and look forward to great success.

 

Making his debut at 185 pounds, Silva is expected to face top-ten ranked middleweight, Michael Bisping, in the co-main event on February 21, 2010 at UFC 110.

 Payout Perspective

Silver Star’s strategy is one of quality over quantity. Silver Star is doing its best to corner the main event market, and the company has been pretty successful in the last few months: main event fighters on each of the UFC’s last three PPVs have been sponsored by Silver Star (the forthcoming TUF Finale will feature Jon Jones, also wearing the company’s clothing) .

Can Silver Star compete with Tapout or Affliction? That’s the question. Silver Star is quite far behind in the graphic tee market, and with so many competitors it looks to be a much tougher market now than it was even two years ago. On the other hand, Silver Star has done a good job at distinguishing itself from amongst the rest of the pack. They’ve been selective with their sponsorships, which has ensured a targeted visibility.

It’s difficult to envision the company grossing a $100 million/year, but it’s positioned well to continue supporting the MMA industry in the future.

Forrest Griffin will wear Silver Star as he heads to the Octagon on November 21st to take on Tito Ortiz at UFC 106:

 Silver Star Casting Company Signs Forrest Griffin To Clothing Sponsorship For UFC 106

(IRVINE, CA) – Silver Star Casting Company has inked a sponsorship deal with Forrest Griffin who will wear Silver Star during his walkout at UFC 106, at the Mandalay Bay in Las Vegas, NV on November 21, 2009, where he will be fighting Tito Ortiz.

Former UFC light heavyweight champion, Griffin earned mainstream popularity as a coach on the first season of The Ultimate Fighter Team Rampage v. Team Forrest, and has recently added ‘author’ to his laundry list of professional and athletic accomplishments.

“Silver Star has supported Mixed Martial Arts since its early days and is excited to be working with one of the sport’s most established and recognized fighters.” said Silver Star Casting Company president and CEO, Luke Burrett.

“Silver Star has been a presence in mixed martial arts for many years and I’m very happy to be working with them for UFC 106,” said Forrest Griffin. “I’m looking forward to a successful fight and the after party Silver Star is sponsoring for me at JET after the fight.”

The UFC 106 Forrest Griffin walkout tee features an allover print with a tattoo-inspired winged skull that is highlighted with silver foil and surrounded with tribal roses. The UFC 106 Forrest Griffin walkout tee is available online now at www.buysilverstar.com and in stores November 2009.

Silver Star Casting Company is an “in demand” lifestyle clothing brand with an innovative style. Based in the apparel hub of So. California, Silver Star delivers trend setting merchandise to retailers nationwide. Seen on athletes and celebrities alike the brand is available through Macy’s, Dillard’s, Tilly’s, Journey’s, Pac Sun, and more. In over 3,000 doors nationally and over 45 countries globally, Silver Star has been defining and setting apparel trends for over 16 years.

Payout Perspective:

Just a quick note: Griffin is just the latest acquisition of Silver Star in the sponsorship fold. They inked Lyoto Machida prior to UFC 104, but have also jumped into the boxing world to nab Manny Pacquiao for his fight against Miguel Cotto.

Silver Star has debuted Manny Pacquiao’s “Destroyer” Collection to the combat sports world in time for his up-coming bout with Miguel Cotto on November 14th.

(IRVINE, CA) – Silver Star Casting Company is proud to introduce the Manny Pacquiao “Destroyer” collection to the brand. Built around Pacquiao’s “Destroyer” moniker, the collection will feature a signature Manny “The Destroyer” Pacquiao tee that will be available online November 11, 2009, followed by a full streetwear collection in stores internationally in Spring 2010.

 

A champion in six weight classes, Pacquiao is also rated the #1 pound-for-pound boxer in the world by Ring Magazine, considered one of the world’s most influential people for the year 2009 according to Time Magazine, and listed by Forbes Magazine in its annual Celebrity 100 List for 2009.

 

“Silver Star wanted to create a collection with one of the most admired and recognized athletes in the world,” says Silver Star owner, Luke Burrett. “Manny Pacquiao’s rise to super-stardom is proof positive that hard work and perseverance thrives in the spirit of a champion.”

 

Manny Pacquiao will fight Miguel Cotto in a catchweight bout at the MGM Grand in Las Vegas on November 14, 2009.

 

Silver Star Casting Company is an “in demand” lifestyle clothing brand with an innovative style. Based in the apparel hub of So. California, Silver Star delivers trend setting merchandise to retailers nationwide. Seen on athletes and celebrities alike the brand is available through Macy’s, Dillard’s, Tilly’s, Journey’s, Pac Sun, and more. In over 3,000 doors nationally and over 45 countries globally, Silver Star has been defining and setting apparel trends for over 16 years.

Payout Perspective:

It’s interesting to see some of these graphic tee companies like Silver Star, and before it Affliction, jump into the boxing market.

There are several different boxing demographics, most of them older, so you wonder how much play the shirt will get (or if Silver Star is planning to target the younger latino or filipino base with the shirt).

MMAPayout.com had the pleasure of sitting down with Shari Spencer, President of GSP Enterprises, earlier today to talk about George St-Pierre’s latest endorsement with apparel maker Under Armour.

KP: Looking at this deal between UA and GSP – there are so many sides to it: the GSP side, the Under Armour side, and the sport side – but I’d like to start with Georges. What does this deal mean for Georges in terms of his commitment, responsibilities, and the affect it will have on his lifestyle?

SS: Georges will be featured in Under Armour’s upcoming marketing campaigns representing their underwear and other specific products.  His responsibilities are typical for this type of endorsement, i.e. service days for photo shoots, personal appearances, etc.  As far as the effect on his lifestyle, I think you’ll see him sporting the UA logo a lot more during training.

KP: The Under Armour image fits perfectly with MMA in terms of being that aggressive, “we must protect this house” type of apparel maker, and for the longest time there has been this under-served, clean-cut and professional clothing market within the MMA industry. How might that affect the rest of the MMA clothing business?

SS: I personally think there’s room for both. We still have a deal with Affliction, and that is our fashion apparel brand. Under Armour is our performance or athletic apparel brand. To some degree, UA is already in the space through its athletic apparel for wrestlers – fighters are wearing their apparel as rash guards – even if UA is not calling them rash guards.  Initially, they will be using Georges as the face of their underwear brand – I’m crossing my fingers that he’ll sell more underwear for them than David Beckham did for Emporio Armani.  

KP: Are you managing any other fighters right now, and what sort of impact might this deal have on their future?

SS: I just signed a second fighter, Frankie Edgar. He’s been flying under the radar, so to speak, but people started to take notice of him when he beat Sean Sherk.  He’s an exciting fighter who shows a lot of heart when he fights, but more importantly, he’s just a great kid.  I went out and met with him and his father-in-law, who has been advising him business-wise, and getting to know him as a person was what convinced me to respond to his request for help. 

Under Armour has a roster of athletes that it endorses, and it’s my understanding that they are starting with Georges in MMA and then going to evaluate from there where they sign other fighters.

KP: GSP is a pretty unique entity in terms of being French-Canadian, a P4P type fighter, and he’s got that GQ look. How does Frankie compare, and how will you go about marketing him?

SS:  I’ve always recognized Georges’ potential to reach an audience outside the sport or those that might not be huge fans.  Georges’ fanbase tends to skew a bit more female (not surprisingly), and he’s the fighter that many guys say they can get their wives or girlfriends to watch alongside them.  As a result, there’s been a very deliberate strategy not to associate too heavily with fight-related brands, so that the public would see him as an athlete first and a fighter second.

I think that for Frankie he will reach a different demographic. I think that he’s more of a “guy’s guy” and he will resonate with a different group. Frankie’s already a family man with one child and another on the way, and so he can’t (well, at least he shouldn’t) be a ladies’ man. Frankie doesn’t have a French accent; he’s got a New Jersey accent. So, I’ll market him much differently.

Frankie is going to resonate with the guy next door.  He’s everybody’s neighbour, and he’s got a very altruistic side to him that I don’t think has really been exposed. He’s done a lot of community work, a lot of giving back, and so my approach with him will be more “the lightweight fighter with a heavyweight heart”, with the obvious double-meaning on the word ‘heart’ – the heart he shows when he leaves it all in the Octagon, and the heart he shows by giving back to society. 

Frankie’s a professional athlete with a champion’s heart and he’s a true gentleman – like Georges, I think he can also make great strides in representing this sport and hopefully changing the opinion of some of the lawmakers in the state of New York.

KP: When I first heard about the agreement, I thought: a.) it was a major, mainstream endorsement of the sport, but b.) it also suggested that UA believes in the viability and profitability of MMA in the long-term – that they can make money in this industry. That’s a pretty big notch on MMA’s belt.

What’s your take?

SS: I agree on both counts.  I believe that the explosive growth that the sport has experienced has caused most brands to sit up and take notice – MMA is growing too fast and resonating too well with that target demo of males 18-35 that they can’t ignore it.  Yet I’ve frankly been a bit surprised at the continued reluctance to pull the trigger.  So when a brand such as Under Armour, known for their high-quality products and cutting-edge approach steps up, I think it can only be a positive endorsement for the whole sport of MMA, not just Georges.  I also think it exposes the sport to a broader audience and hopefully paves the way for endorsement opportunities for other fighters with more mainstream brands.

KP: Even CAA, I suppose, jumping in to help represent Georges.

SS: That’s right, he was their first MMA fighter.  But even with CAA, there was an education process, frankly on both sides, of what the relationship would look like. CAA didn’t have experience representing fighters, so they had to get comfortable with representing an athlete in this sport, then get comfortable with Georges, and finally get comfortable with me.  Over time a trust level and partnership has been established, and in a nutshell, they’ve given us accelerated access to mainstream opportunities while we’ve been educating them on the nuances of this sport.  It’s been a great relationship so far, and while the endorsement deals still do not rival those of the major sports and challenges still lie ahead, I can’t think of anyone I’d rather be making this journey with.

KP: You mention the sort of learning curve that CAA experienced, and I feel there’s still a lot more work to be done. I’ve had the opportunity to speak with a few high-level people from ESPN over the last few weeks, and the feeling that I get is their concern is not primarily based on the viability of the sport in the long-term, but rather, will they alienate some of their current audience just to bring in a new audience? They’re just not sure whether there’s a brand fit.

SS: Together (CAA/myself) we’re still approaching brands directly, as well as ad buyers and the agencies that represent brands and decide that this guy should be your brand ambassador, and introducing them to Georges and try to help them understand MMA.  Marketing Georges is the easy part – he has a great look, he backs it up with his performance, he’s got character, he’s charming -he’s got all those things.  Our biggest challenge has been selling the sport and that continues to be an education process.

So while the UFC is progressing in their efforts to obtain sanctioning in all the Provinces of Canada and all the States here in the U.S., we’re having similar conversations with brand managers and ad agencies – it’s just a constant job of educating.  And, if you were to look at me, I’m about as corporate as they come – I’m a former CFO (and still dress like one) and I speak more of the same language.  I also pull from my experience as president of the Intermountain Section of the US Tennis Association and the governance of that sport in this country.  Add to that my obvious gender, and I’m probably the last person you’d expect to be representing a guy who makes his living fighting in a cage.  That anomaly, combined with the CAA partnership and arguably the most marketable athlete in the sport, and yet it’s still a challenge to present MMA in a way that they’ll understand the sport and want to affiliate with it.

KP: Right. Yeah, and so when I saw that UA was coming on board, I thought, “man, if there had to be an apparel maker to jump into MMA, they would be my first choice.” There is no conflict of brand image with UA, because the sort of aggression that MMA represents is right in line with their target market.

SS: I do tend to think that UA tends to appeal to a younger target demo, and that perhaps the other athletic apparel brands are a bit more established and conservative. UA seems to be more progressive and cutting edge in their branding. So, I do think it’s a good fit and it’s a logical choice.

This is pure speculation on my part, but it wouldn’t surprise me if this deal weren’t some sort of pre-emptive strike.   I can just imagine UA executives sitting around the board room contemplating, something like, “OK, we’re all [UA, Nike, Adidas] looking at it [MMA], and we’re all probably going to get involved eventually, so let’s just be the first one and let’s throw the first punch. And, if we’re going to do it, who are we going to do it with?”

In my opinion, the “safest” way for a brand to enter an admittedly rebellious sport is with the most traditional guy – the guy that wears the gi, the guy that wears the suit to press conference, and the guy that doesn’t do the trash talking.  So from that perspective, endorsing Georges is probably the safest way to dip your toes in the MMA water, so to speak, because he’s got one of the cleanest images of any of the fighters.

KP: Absolutely.

Well, thank-you for your time. I’ll let you get back to work.

SS: No problem. You’re very welcome! 

Today, Under Armour announced that it signed MMA superstar Georges “Rush” St-Pierre to a multi-year endorsement deal.

Below is the press release, followed by some Payout Perspective:

UNDER ARMOUR THROWS KNOCK-OUT PUNCH BY SIGNING
MMA CHAMPION GEORGES ST-PIERRE AS A FACE OF THE
TOP-SELLING ATHLETIC BRAND

 

In A Multi-Year Endorsement Deal, St-Pierre Will Be Featured in Under Armour’s Upcoming Campaigns Showcasing Fitted ColdGear®, Underwear, Recharge™ Suit, and New Coreshort product

 

Baltimore, MD (November 5th, 2009) – Under Armour, (NYSE:UA) the Baltimore-based leader in performance apparel and footwear, announced today it has signed Mixed Martial Arts (MMA) Welterweight Champion Georges St-Pierre to a multi-year endorsement deal. Under the terms of the agreement, St-Pierre, the 2008 Sportsnet Canadian Athlete of the Year, will serve as the face of Under Armour’s Underwear, one of the company’s most popular items, and will be featured in its multi-platform media campaign beginning this holiday season.

 

St-Pierre, known by his fans as GSP, will be featured in imagery displayed in Sporting Goods stores across North America, outfitted in Under Armour’s ColdGear®, performance apparel designed to protect athletes in cold temperatures. Beginning in spring 2010, St-Pierre will become the face of Under Armour’s long-time top-selling BoxerJock® and BoxerBrief Underwear and will serve as one of the primary faces for Under Armour’s Recharge™ suit, a suit designed to re-energize your body, promote muscle repair and reduce swelling following a workout.

 

“It is quite an honor for me to represent Under Armour. I have always appreciated the quality of their products, and to be partners with them is a dream come true,” said St-Pierre.

 

“Not only is Georges one of the biggest stars in one of the fastest growing sports in the world, but his dedication to training and making himself the best at what he does aligns perfectly with our Brand’s mission to make all athletes better,” said Steve Battista, Under Armour Senior Vice President, Brand. “When we found out that he was a fan of ours, we jumped on the opportunity to bring him into the Under Armour family.”

 

“Georges St-Pierre’s continued success in MMA, his character and integrity, and his wide-reaching fan base make him a terrific brand ambassador for Under Armour, which, much like GSP, has become one of the foremost brands in sports in a short period of time,” said Howard Nuchow, Co-Head, CAA Sports, which represents St-Pierre in conjunction withShari L. Spencer, President of GSP Enterprises. “Pairing GSP with Under Armour is a testament to the explosive growth of MMA, and the popularity and cultural relevance of its top fighter, among consumers worldwide.”

 

New for spring 2010, Under Armour has joined forces with Coretection Products Ltd. to bring state-of-the-art patented technology to athletes for all sports around the globe. St-Pierre will be prominently featured in in-store imagery highlighting the new Coreshort compression product. The Coreshort product works to stabilize the core without obstructing movement. The unique technology creates efficient movement through the core, activating stronger motion and more explosive propulsion. Available in two styles; the Coreshort product will retail for $44.99 and the Coreshort Pro product will retail for $59.99.

 

Under Armour, the originators of performance apparel, has transitioned athletes into moisture-wicking apparel since 1996. Under Armour products are sold worldwide and worn by athletes at all levels, from youth to professional, on playing fields around the globe.

 

St-Pierre rounds out an impressive roster of NFL, MLB, NBA and Olympic stars, including Super Bowl Champions Ray Lewis (Baltimore Ravens) and Brandon Jacobs (New York Giants); one of the world’s most accomplished downhill skiers, Lindsey Vonn; in addition to Devin Hester (Chicago Bears), Santana Moss (Washington Redskins), Ryan Zimmerman (Washington Nationals), Nick Markakis (Baltimore Orioles), Alfonso Soriano (Chicago Cubs), lacrosse superstar Paul Rabil, and U.S. Olympian Lindsey Jacobellis.

 

For more information about St-Pierre, please visit www.GSPFightClub.com.

 

About Under Armour, Inc.

 

Under Armour® (NYSE: UA) is a leading developer, marketer, and distributor of branded performance apparel, footwear, and accessories. The brand’s moisture-wicking synthetic fabrications are engineered in many different designs and styles for wear in nearly every climate to provide a performance alternative to traditional natural fiber products. The Company’s products are sold worldwide and worn by athletes at all levels, from youthto professional, on playing fields around the globe. The Under Armour global headquarters is in Baltimore, Maryland, with European headquarters in Amsterdam’s Olympic Stadium, and additional offices in Denver, Hong Kong, Toronto, and Guangzhou, China. For further information, please visit the Company’s website at www.underarmour.com.

Payout Perspective:

The agreement is a multi-year endorsement deal that calls for St-Pierre to appear in advertising campaigns as early as this holiday season. GSP will later become the face of select Under Armour product lines beginning with the BoxerJock and BoxerBrief in Spring 2010.

Under Armour signing GSP is huge for the sport. It’s more than just an endorsement of MMA’s legitimacy, the agreement also suggests that the company believes in the long-term viability of the sport (i.e., they can make money in MMA by endorsing GSP). 

Moreover, the agreement may also turn the heads of other companies currently considering an entrance into the MMA business (e.g., ESPN and Nike). The question of “is MMA a fit for our brand?” becomes easier to answer when your company isn’t the first to take the plunge.

I’ve long advocated that the MMA clothing and performance apparel market is over-saturated by a multitude of graphic design brands - a mixture of skulls, bones, and seizure-inducing colours. However, an under-served market opportunity does exist for a company to create a clean-cut, professional MMA brand to capture the segment of the MMA market that desires a different look , but still wants to represent the sport of MMA everywhere he/she goes.

Under Armour is now in a great position to leverage their aggressive, mainstream brand image – a perfect fit for MMA and its audience – in order to capitalize on some of that market opportunity (at least on the performance side).  Any further push into MMA would only be aided by the fact that a.) they’re essentially the first mover of the mainstream apparel companies (through their endorsement of St-Pierre), and b.) most of those who train in MMA already wear Under Armour to begin with - Under Armour’s existing brand recognition and reputation are already quite high.

Not only has Under Armour secured a great athlete and spokesperson for their brand, but they’ve also positioned themselves well for a potential expansion in the future.