Report: Kevin Durant near megadeal with Nike

Under Armour's deal with Kevin Durant has reportedly been matched.

According to ESPN, Nike have countered Under Armour's offer of between $265 million and $285 million with the belief that they can hold on to the reigning NBA MVP for the next 10 years. While the exact figure of Nike's offer is unknown, it's apparently more - in base and royalties - than the $41.2 million that the Oklahoma City Thunder will pay Durant over the next two seasons.

Durant was on the verge of moving to Under Armour as his seven-year, $60-million deal with Nike is expiring. Although Nike reserved the right to match Under Armour's offer, many believed that they would ultimately let him go as Nike reportedly made an initial offer of roughly $20 million per year that was far from what Under Armour is willing to pay.

However, as pointed out by analyst Omar Saad, who is a senior managing director of ISI's luxury, apparel, and footwear team and covers all the major brands on Wall Street, such an offer from Nike was inevitable.

"For Nike, this was nothing to them," Saad said. "They could easily build Durant's business enough, assuming normal margins, where they could generate a cash flow of $60 million a year. And Nike is really good at monetizing its marketing assets, way better than anyone else."

Saad also believes that Durant provides Nike with a "niche" that makes him different from LeBron James, Kobe Bryant, or the Jordan brand. His custom "KD" shoes generated $175 million at retail this past year, according to market retail tracking firm SportsOneSource, meaning business was on the rise and that Nike was left with plenty of money on the table due to the $125 cost of the shoe and the limited distribution to stores. Saad thinks that raising the price and opening up more channels "could make the deal worth it."

It's now back to the drawing board for Under Armour.