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Under Armour cut The Rock. And it isn't the first one. They dropped…
Under Armour cut The Rock. And it isn't the first one. They dropped Steph Curry too. There are only two real explanations here. One: they ran the unit economics, found the ROAS didn't justify the spend, and moved that budget somewhere that converts faster. That's the disciplined call. I don't think that's what happened. Two: they're cash constrained. So they're cutting the two biggest line items they can find and calling it strategy. That's the version I believe. And here's the problem with it. An ambassador relationship isn't a media buy you can switch off and back on. It's the kind of thing you spend years building, and it keeps bringing customers in long after the deal is signed. Blow that up under cash pressure and you don't actually save anything. Your acquisition costs snap back to a much higher level, and you pay that premium every single quarter from here on out. The savings show up this year. The bill shows up for the next five. So the thing I'd want to see is what the data said before they cut. Did this call come from the boardroom, or from a lender's spreadsheet? Because that's what tells you where Under Armour is really sitting. And right now the cuts are doing the talking. Found this useful? Repost it to your network and follow for more Juan Mouton, CMO, Preparing you for Series A Personal Brand Powered by Agent Craft
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