MLB Deal Gives Under Armour Inc Stock a Lift

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Under Armour Inc (NYSE:UA) and MLB have inked a deal that will make the athletic apparel company the official partner of the league.

MLBStarting in 2020, Under Armour will be the exclusive uniform maker of the professional baseball league with new jerseys to be sold by Fanatics, the new official retailer of MLB uniforms. Fanatics will also offer on-field apparel for players.

The company will be taking over the business that Majestic Athletic has led since 2005, when it first partnered up with the league to produce uniforms. MLB and Under Armour have yet to comment on the alleged deal

Many of the world’s top athletes have an Under Armour sponsorship, including Clayton kershaw, Bryce Harper and Stephen Curry. College sports have the name of the sponsor prominently featured on the jersey, but it will likely not be this way for MLB uniforms.

NFL jerseys have the name of the maker on the sleeves, and it will probably be a similar arrangement for baseball players. Despite Under Armour taking over as the new uniform maker for MLB, New Era will remain as the producer of baseball caps.

Additionally, Nike Inc (NYSE:NKE) will no longer create undershirts for the league as Under Armour will take over that deal. Umpires uniforms will probably be made by Under Armour as well, but this has yet to be confirmed.

UA stock is up 2% Tuesday.

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Article printed from InvestorPlace Media, https://investorplace.com/2016/10/mlb-under-armour-ua/.

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