BRIEF: Li Ning signs NBA superstar Stephen Curry, but investors unimpressed

Chinese sportswear giant Li Ning Co. Ltd. (2331.HK) announcedo n Tuesday that it has entered into a long-term partnership with NBA star Stephen Curry and his Curry Brand. Media reports said the agreement could run for as long as 10 years, though financial terms were not disclosed.

According to the company, the partnership will focus initially on basketball and golf products, with plans to expand into broader lifestyle categories in the future. Curry said Li Ning’s strong sporting heritage and product innovation capabilities impressed him, particularly the performance, comfort and design of its footwear, leaving him confident about the partnership’s prospects. Li Ning also plans to open Curry Brand stores in both China and the U.S. to increase the brand’s visibility.

Curry ended his decade-long relationship with sportswear maker Under Armour (UAA.US) late last year, sparking widespread speculation about his next endorsement deal. Observers had also viewed Li Ning’s Chinese rival Anta Sports (2020.HK) as a potential suitor.

Despite the high-profile deal, Li Ning shares fell 2.8% on Tuesday after the announcement to close at HK$18.37.

Morgan Stanley said in a research note that Li Ning could use the Curry franchise not only to revive its basketball category, but also to strengthen the overall brand through expansion into multiple product segments. The bank expects the company’s near-term share performance to remain driven by consumer demand and pricing trends, and maintained its “overweight” rating and HK$26 target price on the stock.

By Lee Shih Ta

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