Nike continues to monopolize the sports apparel world.
The National Basketball Association announced on June 10 that it has signed an apparel deal with the mega shoe and sports apparel corporation beginning with the 2017-18 season.
The deal is an eight-year partnership. Financial terms were not immediately disclosed, but the deal is worth roughly $1 billion, which is approximately a 245 percent annual increase from the previous deal.
“This partnership with Nike represents a new paradigm in the structure of our global merchandising business,” NBA commissioner Adam Silver said in a statement. “As our exclusive on-court apparel provider, Nike will be instrumental in our collective efforts to grow the game globally while applying the latest in technology to the design of our uniforms and on-court products.”
NBA executives and former apparel partner Adidas could not see eye-to-eye and be on the same accord, the Germany-based company still put most of its efforts into soccer. Earlier this year, Adidas dropped a spot in the U.S. sales rankings, as Under Armour became No. 2 in sales behind Nike.
A few years ago, Nike solidified a deal with another major sports league in the United States, you can almost call them the “Golden Goose” of U.S. sports. Nike scored the official uniform deal with the NFL in 2012 and has extended those rights until the end of the 2019 season. Nike would become the league’s exclusive maker of licensed on-field apparel including uniforms, clothing worn on the sidelines and fan gear. Nike replaced Reebok.
The deals to secure the licensing rights with the leagues are expensive. But they often pay for themselves because professional athletes are so ubiquitous that they effectively are billboards for the apparel makers who actively market high-performance gear to consumers.