Oregon has long been associated as the home state of one of the world's leading sports brand, Nike Inc. The Beaverton, Oregon-based manufacturer of sports apparel and equipment is one of largest companies in the state. However, a budding Nike rival in the form of Under Armour has recently entered Nike's own turf and is poised to grab one critical location away from the Swoosh.
The Wall Street Journal reported that Under Armour revealed its plans to expand its operations to Portland, Oregon. Along with their expansion project, the Baltimore, Maryland-based sports company has been given the green light by Portland authorities to improve the track and field at Duniway Park last September.
Under Armour's global footwear operations will be housed in a building adjacent to the park, just 10 miles from Nike's headquarters.
The Portland Parks & Recreation announced on their website their partnership with Under Armour to make improvements in the park in an effort to "to move forward with a significant partnership to enhance recreational opportunities for Portlanders." The planned improvements include the addition of artificial turf fields among others, according to the Baltimore Sun.
Nike used to supply the park with recycled rubber from used shoes to maintain the track's surface and it installed the digital clock at the finish line, which Under Armour said it will remove once renovation starts. The Duniway Park used to be Nike's domain, but after its agreement with the city ended in 2000, maintenance of the park was significantly affected.
Sara Germano of The Wall Street Journal cited that Under Armour claiming the park is a significant move to assert itself as a major rival to Nike, considering that Portland is Nike's home turf.
Nike attempted to negotiate for the park with Portland authorities, but talks reportedly fell through as Under Armour presented a better deal.
Amanda Fritz, the commissioner of Portland Parks & Recreation, detailed that Under Armour pledged $5.5 million to renovate Duniway and another park in the city, the agency's choosing. Under Armour made the offer and did not ask for tax breaks, which is unprecedented.
"Usually it's 'give us tax breaks and we'll create jobs,'" Fritz said. "But in this case it's 'no tax breaks, here's $5.5 million in parks improvements, and we'll create jobs.'"
Meanwhile, Nike expressed its disappointment with the city's decision to grant Under Armour renovation permits for the park.
"We installed the first track at Duniway Field in 1995," said Nike spokesman T.J. Crawford. "Given our recent discussions about community projects, we're disappointed we were not provided an opportunity to submit a proposal to extend our relationship at Duniway Park."
