Overheard On Wall Street: Sports Authority & Under Armour

Sports Authority Inc.

The sporting-goods retailer, which filed for bankruptcy in March, has pushed back the date of its bankruptcy auction from April 25 to May 16, according to documents filed in the U.S. Bankruptcy Court for the District of Delaware.

The company’s lawyer reportedly said Sports Authority has received “substantial interest” from several potential bidders, a major reason behind the need to push back the auction.

According to a report from Reuters, both Dick’s Sporting Goods Inc. and Academy Sports + Outdoors have submitted letters of interest to buy some of the assets of Sports Authority.

When rumors of a potential Chapter 11 filing from Sports Authority broke earlier in the year, analysts began pegging Dick’s as potentially a key beneficiary of Sports Authority’s bankruptcy.

“Twenty-three percent of Dick’s stores are in the immediate area of a Sports Authority store, which should provide for rapid same-store-sales acceleration once the Sports Authority stores are closed,” Sterne Agee CRT analyst Sam Poser wrote in January. “The potential closure of Sports Authority stores not near existing Dick’s stores will allow for uncontested entry into those locations, which are desirable.”

Under Armour Inc.

Under Armour may be finding more avenues for gaining traction on a global scale.

The Baltimore-based athletic brand announced a seven-year partnership with the Southampton Football Club, an English soccer club also known as The Saints.

Over the next seven seasons, Under Armour will sponsor the team, designing and developing match kits beginning with the club’s 2016-17 home and away strip.

“Southampton FC, like Under Armour, is humble and hungry. They are an institution with strong core values based on a pioneering attitude,” said Peter Murray, VP of global sports marketing at Under Armour, in a statement Thursday. “The club’s commitment to developing and improving players at every level continues to set a benchmark in the sport. We look forward to providing game-changing technologies and product innovations to further support the club’s on-pitch performance.”

Under Armour has also committed to working with the Saints Foundation to provide kits to more than 5,000 children in the local community.

Saints Chairman Ralph Krueger Peter Murray Under Armour
Saints Chairman Ralph Krueger and Peter Murray of Under Armour.
CREDIT: Southampton FC.
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