Golden State Warriors Are Dominating The NBA...And Wall Street
The Golden State Warriors have been the talk of the NBA, ripping off a historic win streak to begin the season. Led by reigning league MVP Steph Curry, the Warriors record stands at 42–4, on pace to set the NBA record for wins in a season. The current record stands at 72, held by the Michael Jordan-led Chicago Bulls in 1996.
The Warriors are dominating NBA teams, but they've also made some waves in the financial world recently as well.
Boosting Under Armour
Under Armour Inc (NYSE: UA) was up 20 percent Thursday following its better-than-expected Q4 earnings report. The company noted revenue from apparel in the quarter rose 22 percent from a year ago to $865 million due to growth in training, running, golf and basketball related sales.
Specifically, footwear sales surged 95 percent from a year ago to $167 million, primarily due to its Stephen Curry signature basketball line and expanded running offerings. Under Armour joined the basketball shoe business in 2011, with the Curry One shoe was released in February 2015.
Earlier this month, Morgan Stanley reiterated that Under Armour was offering too good a deal on its shoes, and recommended that Under Armour price its Curry shoes more in line with Nike Inc (NYSE: NKE)'s premium basketball shoes. Nike has exclusive deals with LeBron James. However, Curry actually sells more jerseys than James, yet his Under Armour shoes are priced around $50–100 less than Nike's offerings.
"Our view, and the market's, is that Under Armour is a great brand and will eventually become the world's number two athletic wear company and possibly number one," the analysts said.
JPMorgan Earns Naming Rights: Chase Center
It was also announced on Thursday that JPMorgan Chase & Co. (NYSE: JPM) purchased the naming rights to the Warriors new arena.
"The 18,000-seat privately funded facility in San Francisco's Mission Bay neighborhood will be called the Chase Center," ESPN's Darren Rovell reported. "Frank Nakano, managing director of sports and entertainment for JP Morgan Chase, said the company will use the naming-rights deal to pitch all aspects of the bank's business, from consumer credit cards and home-mortgage financing to private money management."
Forbes said the Warriors will get at least $10 million annually over 20 years from JPMorgan for the naming rights.
The arena is scheduled to open for the 2019–2020 season. Golden State's current home court – Oracle Arena – has housed the Warriors since 1966, and is the NBA's oldest arena.
High-Price Real Estate
Another interesting tidbit from the team's success? Home prices in the Oakland, California area have risen 34 percent since the Warriors last lost a home game.
"Been so long since Warriors lost regular season home game that median Oakland home sale has gone up $144,000 (34 percent) since then, per Zillow," Mike Rosenberg, a freelance reported Tweeted out earlier this week.
The Warriors last home game loss was on January 27, 2015, succumbing to the Bulls 113–111.
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