Why Steph Curry Chose China and Li-Ning

After testing its value on the open market, Curry Brand finally has a new home in the form of a $300 million-$400 million 10-year deal with China's Li-Ning. Here's what it means.

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Six months on from Stephen Curry’s shock exit from his lifetime Under Armour deal, we finally have an answer as to the future of his eponymous Curry Brand, the basketball-focused sub-label that the brand once co-owned but cut loose.

When the break-up happened — and Curry Brand was told it was free to pursue a deal with a new retail partner — it was the most unexpected and definitely the most seismic piece of news in the otherwise relatively stale performance basketball sneaker market. All of a sudden, the greatest shooter in NBA history was a sneaker free agent, in the twilight of his playing career.

There was instant speculation as to what would become of Curry Brand. People speculated that: (1) Curry could go it alone and raise capital to build it out as an independent sportswear business (never going to happen); (2) Nike, Adidas or Puma would swoop for Curry Brand to bolster their basketball and lifestyle divisions (unlikely, given how expensive the investment would have been); or (3) as suggested at the time on SportsVerse, the most likely option was that Curry would look to the China market and seek to partner with one of the country’s two major brands enjoying increasing influence over the global sportswear market (and specifically in basketball footwear), Li-Ning or Anta.

The Steph Curry-Under Armour Backstory, Explained

Earlier this week, we got our answer. Curry’s sneaker free agency came to an abrupt halt after he announced a partnership with Chinese sportswear giant Li-Ning that will pay him $300 million over 10 years, according to local media reports in China (though Front Office Sports suggested the actual amount is much higher than that, citing an unnamed source). ESPN’s Shams Charania reported that the deal was worth closer to $400 million.

Was Partnering With a Chinese Brand Inevitable?

Yes. To the general public, it appeared that Curry had a wealth of choice as to where to take his brand during his sneaker free agency, which saw him wear footwear from just about every sportswear label in the market, old and new, from Nike to Reebok to Adidas to Puma to even On.

After half a year on the open market, Curry decided his best option was to partner with Chinese sportswear powerhouse, Li-Ning.

But in reality, very few options were actually viable, owing to limiting factors including: 1) the difficult positions of brands like Nike and Puma and their unwillingness to fork out such a large investment given the turnaround phases both companies find themselves in; 2) the fact that Curry is so late in his playing career, making a long term investment in a brand based on his name, image and likeness that much riskier, even if he’s one of the greatest of all time; 3) the fact that Adidas is building its own very specific identity in basketball, and Curry Brand would take valuable capital away from the foundations it’s building with its own product franchises in both men’s and women’s hoops.

Turning to a brand in China, it seemed, was Curry’s only option.

Why Did Curry Choose Li-Ning?

There were bids tabled by other brands, both in America and beyond. But realistically, Li-Ning was always going to be one of two credible options.

While many brands on the market could offer him a lucrative endorsement deal of some kind, what Curry would have prioritised above all else is finding a partnership with a brand that allows him enough independence, investment and dedicated focus to continue building Curry Brand as a business in its own right, rather than it simply being another sneaker line in a large endorsement roster at a company like Nike, Adidas or Puma.

Li-Ning already had a proven track record in this regard, having partnered with NBA legend Dwyane Wade to launch his Way of Wade sneaker line after he left his Jordan Brand endorsement in 2012, before scaling it into a standalone business in the brand’s wider portfolio after signing him to a lifetime deal in 2018.

Steph Curry wearing the Li-Ning Way of Wade 12 "All Star"

In his open letter announcing the deal, Curry cited his admiration for the products Li-Ning had created for both Wade and his Golden State Warriors teammate Jimmy Butler, who is also signed to the brand.

While Curry would have been a valued addition to any brand he joined after Under Armour, very few could have given him the platform and autonomy that Li-Ning can offer.

Much like its larger domestic rival, Anta, Li-Ning is a relatively unknown entity to consumers and even industry folk outside of Asia. But the company’s $4.3 billion in annual revenue, coupled with its assortment of high-quality performance footwear and apparel across multiple sports (especially basketball and running), plus its extensive endorsement portfolio of athletes, teams and national federations, tells you all you need to know about how serious a competitor it can be to the rest of the market once it breaks out of Asia. Investing $300 million to $400 million to partner with Steph Curry only underscores just how committed the brand is in this regard.

We’ve said it time and time again on SportsVerse, but it’s worth reiterating here. Sportswear brands rarely see a return on investment for signature sneaker lines, save for rare success stories like Jordans, Kobes or Adidas’ Anthony Edwards line. Signature labels are usually marketing ploys to show off a brand’s connection to the athlete in question, and bring the athlete’s fans closer into the brand’s universe. Li-Ning, which will, of course, do its best to ensure the Curry Brand is profitable, is nevertheless investing predominantly in the association with Curry, rather than the ability to sell and co-create his brand’s products.

Curry also noted another factor in his decision to sign with Li-Ning was the company’s eponymous founder’s background. Mr Li Ning, the billionaire entrepreneur, is a former Chinese Olympic gold medalist and gymnast, and his role and track record as an athlete founder were reportedly enticing additional elements to the company’s bid for Curry’s business.

Finally, Li-Ning represented a logical home for Curry Brand, given how much time Curry himself has spent out in China marketing his brand and organising camps there almost every summer for the past several years. Li-Ning’s home market is already primed for both his profile and his product.

China's Anta Is Putting the Sportswear Market on Notice

How Will the Li-Ning-Curry Brand Partnership Work?

Much like Curry Brand’s former set-up with Under Armour, the brand will leverage Li-Ning’s design, production and marketing infrastructure to create and sell its products as its own standalone sub-label. The continued focus of the Curry Brand for the time being appears to be across basketball, golf, and lifestyle (general sports-inspired fashion).

A (Mostly) Mutually Beneficial Partnership

Curry is the perfect conduit for Li-Ning — which currently generates around 99 percent of its sales in Asia — to finally embark on a push for global market share. The deal reportedly includes the opening of dedicated Curry Brand stores in the US and Canada, which will effectively be the first permanent Li-Ning retail outposts in North America.

One major sticking point that both parties will need to navigate off the bat is that Li-Ning is one of several companies identified and accused by the US government and human rights groups of using forced labour to produce their products. It led to Li-Ning products being banned in the US in 2022. It means that Curry Brand and Li-Ning’s first challenge will be ironing out any roadblocks to selling Curry Brand clothing and footwear in Curry’s home market, though this hasn’t appeared to be an issue with similar Li-Ning partnerships with other American stars, such as Dwyane Wade, whose Way of Wade sub-brand sells directly from its dedicated e-commerce site. (Though it’s worth noting that while Way of Wade has been a success in China, its impact on the global basketball footwear market has been relatively limited.)

There are many questions left to be addressed: Will Li-Ning be able to unlock the potential in Curry Brand that Under Armour failed to? Will Li-Ning regret such an expensive bet on the selling power of an ageing NBA legend? Will Steph Curry be allowed the creative and commercial freedom to leave his own stamp on his brand?

For these very important considerations, only time will tell.

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That’s all for today, friends. Thanks for coming along for the ride.

See you next time,

DYM