Swoosh: Nike Scores $1 Billion NBA Jersey Deal
The NBA has recently announced an eight-year global merchandising and marketing partnership with Nike, Inc. that will begin with the 2017-18 NBA season. Pursuant to the agreement, Nike will become the official oncourt apparel provider for the NBA. The deal will make Nike the first ever apparel provider to have its logo appear on NBA uniforms.
This comes after German apparel manufacturer Adidas, the NBA’s previous official outfitter, bowed out of the running for the uniform contract. In securing the contract, Nike reportedly beat out apparel giant Under Armour as well.
This is Nike’s second major uniform deal in recent years; beginning in 2012, Nike took over uniform rights for the NFL. Nike’s shares saw an increase of 1.9% Wednesday, and their value is up approximately 35% from last year.
The deal solidifies Nike’s already-significant hold on the NBA and basketball as a whole. It already controls over 90% of the retail basketball shoe market in the United States, and has endorsement deals with some of the biggest names in basketball including LeBron James, Kevin Durant, and Kobe Bryant.