Anheuser-Busch InBev NV (ADR) (BUD), NIKE, Inc. (NKE): Who Else Benefits From The NFL Draft?

Under Armour Inc (NYSE:UA) in particular has a lot of room to grow as football’s popularity continues. It has a tenth of the market cap that NIKE, Inc. (NYSE:NKE) possesses. It is focused on football, particularly since its founder, Kevin Plank, is a former University of Maryland player. The company signs deals with colleges to provide apparel for their football teams. The company clearly wants to nurture talent for rookie endorsement deals rather than spend money on pie-in-the-sky deals like NIKE, Inc. (NYSE:NKE) did with the NFL or with veteran star players. Spending like this is smart, as it ends up costing less yet still allows Under Armour to compete with NIKE, Inc. (NYSE:NKE).

It appears that Adidas and its subsidiary Reebok are missing out on the NFL bandwagon as NIKE, Inc. (NYSE:NKE) and Under Armour Inc (NYSE:UA) wage a David and Goliath-type battle for NFL athletes. After its NFL apparel deal expired, Adidas signed a contract for Reebok to sponsor CrossFit gyms. It’s a long-term strategy to bank on physical fitness rather than pro-football, a sport that most people don’t actually play.

Adidas has pledged to sign a contract with the fastest NFL prospect, which signals that it wants to promote its shoes, but perhaps not much else NFL-related. That might not be a bad move, as the deal with CrossFit could bring the company more revenue as that brand is positioned closer to potential customers that might actually buy athletic gear from Rebook.

The NFL draft is not a science: within three years, only 62% of draft picks will still be on NFL rosters. But teams have to pay for drafting talent. The companies that spend marketing money on drafted players can get good exposure as long as the player becomes a good professional player. Maybe that’s why Nike’s deal isn’t so bad despite the cost: no matter the player, they’re all wearing that swoosh logo on their jersey during games.

The article The Players Are not the Only Ones Gaining from the NFL Draft originally appeared on Fool.com and is written by Daniel Cawrey.

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