Business Wars: Under Armour’s Attack on Nike | Dropping the Ball | Episode 2

Podcast: Business Wars
Host: David Brown
Episode Date: March 25, 2026

Episode Overview

This episode of Business Wars delves into Under Armour’s tumultuous quest to overtake Nike. The narrative covers Under Armour’s bold investments, missteps in product strategy and distribution, leadership transitions, and cultural challenges as the brand attempts to evolve from gritty athletic upstart to a tech-driven, global sports powerhouse. Ultimately, it’s a cautionary tale of fast growth, faltering identity, and the dilemma of chasing market leaders without losing sight of one’s roots.

Key Discussion Points & Insights

1. High-Stakes App Acquisitions & the Data Gamble

Timestamps: 00:00–05:19

• 2014 Decision Point: CEO Kevin Plank debates buying MyFitnessPal and Endomondo for $560 million, despite it being over 15% of annual revenue.
  • Pro: Access to fitness data from 100 million users for product development and targeted marketing.
  • Con: No clear path to revenue; risk of not converting users into sales.
• Internal Debate:
  • “Buying these apps will give us data on roughly 100 million users. …all this data will drive significant product innovation.” – Under Armour Exec (01:37)
  • “We're talking about spending roughly $6 per user. That's a lot of money if we can't convert it into actual product sales.” – Senior Exec (02:18)
• Plank resolves to buy, inspired by Nike’s prior tech investments. "But are they already too far ahead?" (03:32)

2. Betting Big on Steph Curry & Mismanaging Scarcity

Timestamps: 05:19–12:30

• Under Armour is counting on Steph Curry’s signature shoe launch.
• Expertise Ignored: Senior Footwear Director Aaron Miller warns against oversaturating the market with Curry 2—his advice (learned at Nike) is to keep the shoe scarce to increase demand. He’s ignored.
  • Quote: “That’s the thing about waves. You can't force them to be bigger than they are. And that's how it feels at Under Armour.” – Aaron Miller (07:26)
• Reality matches Miller’s fears: Overproduction leads to discounts and brand devaluation. “Inventory piles up and the shoes hit the discount table. It’s not a great look…” (09:13)
• Cultural Identity Crisis: The low-top Curry 2 is mocked online as a “dad shoe,” but still sells out—revealing mixed signals about what Under Armour stands for.

3. Expansion Gambles & Retail Relationships

Timestamps: 12:30–20:34

• College Deals: Under Armour wins a lucrative $280M contract with UCLA.
• Setback: The bankruptcy of Sports Authority (their biggest distributor) creates a $163 million sales hole.
• Kohl’s Partnership Debate:
  • Some executives fear diluted brand value and price competition; others see a chance to reach women and new audiences.
  • “Distribution builds revenue, but it can dilute identity.” – Narrator (17:42)
• Under Armour moves into Kohl’s, hoping to fuel short-term growth—and risks angering Dick’s Sporting Goods, its biggest partner.

4. Signature Shoe Stumbles & Brand Dilution

Timestamps: 20:34–28:41

• Curry 3 launches to weak demand; heavy discounting follows.
• “When you flood the market, you don’t just lower prices, you lower mystique. Growth feels good in the moment. …But the problem is brand equity compounds slowly and can evaporate fast if your logo ends up on the discount rack.” – Narrator (22:49)
• Dick’s Sporting Goods CEO Edward Stack reacts by reducing Under Armour’s presence in favor of in-house brands after sales drop due to Kohl's discounting.
• “If there’s anything we’ve learned on Business Wars, it’s this: Business is built on relationships.” – Narrator (24:47)

5. Leadership Turmoil, Cultural Reckoning & the Curry Conundrum

Timestamps: 28:41–36:32

• 2018–19: Under Armour faces #MeToo-era cultural scandals and SEC probes over accounting.
• Kevin Plank steps down as CEO (2019), replaced by Patrick Frisk; Plank becomes Chairman.
• Frisk pivots to “slow and steady” growth, focusing on direct-to-consumer (DTC) sales and e-commerce post-COVID-19.
• Steph Curry demands an empire akin to Michael Jordan's: his own brand, full apparel line, including golf. Plank acquiesces to keep Curry—but the shoe’s sales have lost cultural cachet.
  • “When Under Armour signed him, they told him he would be the Michael Jordan to their Nike. …But Jordan didn’t just get a signature shoe line. He got an empire.” – Narrator (34:22)

6. Struggle to Refocus and Compete in a Changed Market

Timestamps: 36:32–45:15

• Pandemic pressures force layoffs, store closures, and the sale of fitness apps.
• Frisk’s focus on DTC and marketing sees modest success, but he's ousted in 2022 amid pressure for faster growth (as Lululemon outpaces Under Armour in revenue growth).
• Stephanie Linnartz, hired from Marriott, tries to import loyalty ecosystem strategies and elevates the women’s line, but exits after revenue slips. Plank resumes CEO role in 2024.
• Plank’s New Vision:
  • “We’re making the decision to reduce our product line. That will ease customer confusion.” – Kevin Plank (42:42)
  • “We’re re-establishing ourselves as a premium brand.” – Plank (43:10)
  • He emphasizes patience and focus on high-end performance apparel, a shift back to Under Armour’s roots.

7. The End of the Curry Era & Open Questions

Timestamps: 45:15–End

• November 2025: Under Armour and Steph Curry part ways (his brand then makes up ~2% of UA’s sales, compared to Jordan's $7 billion at Nike).
• Early 2026: Under Armour forecasts improved revenue, but faces an existential question about whether Plank can stay committed to the new strategy.
• “Often strategy isn’t the tough part. Sticking to it is. …Consistency builds trust both out there in the market and inside the building. Discipline is a competitive advantage in its own right.” – Narrator (43:56)

Notable Quotes & Memorable Moments

On Data and the Tech Pivot:

• "I just keep coming back to the same question. Does this move serve our core business?" – Kevin Plank (00:46)
• “Are we going to spend more mining the data than we ever will earn from it?” – Plank, worrying about the value of the app acquisitions (02:56)

On Footwear Strategy and Scarcity:

• “The way to create a brand with lasting cachet is to keep consumers wanting more… You have to make the shoe rare so the resellers are hyped to find and sell the shoe.” – Aaron Miller (07:11)
• “You can’t force [waves] to be bigger than they are. …That’s how it feels at Under Armour.” – Miller’s reflection (07:58)

On Brand Dilution and Partnerships:

• “Distribution builds revenue, but it can dilute identity. …Opening more doors sounds good for growth until you realize you may have just opened the wrong doors.” – Narrator (17:42)

On Leadership Discipline:

• “Often strategy isn’t the tough part. Sticking to it is. Most companies don’t fail because they lack ideas. They fail because they keep changing them.” – Narrator (43:56)

Key Timestamps

• 00:46: Kevin Plank debates buying apps in a pivotal strategy meeting.
• 07:11: Aaron Miller’s warning on shoe scarcity ignored.
• 09:13: Curry 2 overproduction leads to discounting and weakened brand.
• 17:42: Narrative on the dangers of distribution and brand dilution.
• 22:49: Curry 3 flop and the impact on Under Armour’s “cool” factor.
• 24:47: Dick’s CEO reacts to Under Armour’s shift to Kohl's.
• 34:22: Curry’s demand for his own brand, mirroring Nike’s Jordan strategy.
• 42:42: Plank outlines the new focus on best products and premium positioning.
• 43:56: David Brown’s reflection on discipline and strategy.

Conclusion

“Dropping the Ball” traces Under Armour’s ambitious offensive against Nike and the pitfalls of chasing growth without maintaining a coherent identity. With repeated pivots in strategy—shifting from gritty performance brand to tech aspirant, mass retailer, and back again—Under Armour illustrates major lessons in discipline, partnership, and brand building. Even amid leadership churn, cultural stumbles, and missed opportunities, the episode asks whether Kevin Plank—and Under Armour—can finally stick to a focused vision and regain their competitive edge, or if Nike’s throne remains untouchable.

For listeners seeking a narrative of ambition, risk, and what it really takes to be a sustained challenger, this episode unpacks the tough choices that define business empires in the making—and unmaking.