Anyone surprised by Cooper Flagg, the projected No. 1 NBA Draft pick in 2025, signing with New Balance isn't paying attention.
It's easy to see by looking at the volume of people, including a young demographic, wearing the "N," but it's a bit harder to understand from a financial perspective because, unlike almost every other company in the space, New Balance is private.
Financials offered by the company show the brand is three times bigger today than it was 15 years ago, before it lifted its endorsement ban, going from $1.6 billion in annual sales in 2008 to $6.5 billion in 2023. For context, Under Armour did $5.76 billion last year.
For almost 20 years, New Balance went with the "Endorsed By No One" philosophy, which was born after main spokesperson James Worthy was arrested for solicitation of prostitution in November 1990.
Until 2009, New Balance's owners Jim and Anne Davis resisted signing big stars, thinking it wasn't worth the risk. As a result, New Balance became a "dad' brand, with its average consumer in their 40s.
But 15 years ago, New Balance hired a Nike marketer and was ready to make another go. New Balance first went into baseball, knowing it didn't have to pay the big bucks commanded by the NBA and NFL, and scored some big names such as Curtis Granderson, Dustin Pedroia, Nick Swisher and Miguel Cabrera.
Not only do they now have baseball players in volume, they also have the No. 1 guy, after signing Shohei Ohtani last year. His signature cleat came out this summer.
New Balance shocked the world when it signed track star and social media star Sydney McLaughlin, who in the past would have definitely gone to Nike or adidas. She lived up to the hype, becoming a two-time Olympic gold medalist in the 400 meter hurdles.
It added Kawhi Leonard and Jamal Murray in the NBA and signed 18-year-old Brazilian soccer sensation Endrick, who scored his first goal this weekend with Real Madrid. In March, proving New Balance isn’t just for your dad, it signed with CAA with the goal of getting even hotter.
New Balance is on such a run that the most valuable spokesperson in the world today, Taylor Swift, wears New Balance. There's not a deal in place, but she's been photographed plenty wearing their 1906R's.
Now comes Flagg, a 6-foot-9, 17-year-old forward who is expected to play just one season at Duke before turning pro. Scouts were even more tantalized when Flagg reportedly shined in a scrimmage against Team USA before the Summer Olympics.
This is clearly a big score for New Balance. And given where the brand is going, it's just as big of a score for Flagg.
Darren Rovell is the founder of cllct.com and one of the country's leading reporters on the collectible market. He previously worked for ESPN, CNBC and The Action Network.