Kicks Inc., a manufacturer and distributor of athletic apparel and shoes, had plans to launch a new tennis shoe line within the year and was seeking an up-and-coming young athlete to be its spokesperson. Sebastian Martinez had emerged as an ideal candidate, and contract discussions were underway. Six issues need to be resolved to the satisfaction of the six parties involved—the athlete, the athlete's mother, the athlete's father, the athlete's agent, the Kicks brand manager, and an International Tennis Federation representative. This case provides specific role information for the Kicks brand manager. The case needs to be accompanied by the background information case, UVA-QA-0739. Excerpt UVA-QA-0743 Rev. Jun. 14, 2011 Confidential Information for Jason Priddy (Kicks Brand Manager) Jason Priddy was a young manager at Kicks Inc. He had joined the Kicks team just under a year earlier and had recently been assigned as brand manager of the new tennis shoe line. He wanted to prove himself and demonstrate to the company that he could manage the new brand well by staying within budget while signing big names to effectively promote the shoe. Upon accepting the position, Priddy extensively researched the market for tennis shoes, especially among the professionals. Although many companies sponsored athletes with clothing, few companies offered tennis shoes as well. The biggest names among the shoe companies were Nike and Adidas, but Kicks would also compete against smaller companies in the market, including K-Swiss, Babolat, Reebok, and New Balance. Nike, a $ 16 billion company, boasted over 50% of the athletic shoe market and annually offered more than $ 400 million in endorsements. New Balance, however, also a top-five athletic shoe manufacturer, did not offer any athlete endorsements. Kicks's endorsement plans would fall somewhere between thosetwo extremes. Priddy was certain Kicks wouldn't be able to compete with what Nike had to offer, but upon further research found that it might be able to more directly compete with K-Swiss, a$ 1 billion company. After a long period without athlete endorsements, K-Swiss had begun in 2006 to offer contracts again to tennis players, starting with a 19-year-old American named Phillip Simmonds. Simmonds, ranked 202 at the time, had been offered a four-year endorsement contract for $ 50,000 annually. By 2009, K-Swiss was able to endorse other bigger-name players such as Mardy Fish, Anna Kournikova, and Tommy Haas, and all for modest compensation amounts, especially compared with Nike's athletes. Priddy decided he would try to model his strategy after K-Swiss's. Nike was proficient at scouting athletic talent, ultimately signing some of the biggest names in sports. Priddy would have to target up-and-coming athletes, who would accept a lower compensation amount, and hope they would live up to their potential. Given that K-Swiss had offered a 200-ranked player $ 50,000, he figured $ 200,000 would be a respectable offer to a top-50 player. . . .