New 8-year deal makes NIKE official apparel provider for NBA from 2017
The National Basketball Association (NBA) and NIKE, Inc. announced a new 8 year gloabal merchandise and marketing partnership starting from the 2017-18 season that will make the footwear manufacturing company the league’s official uniform apparel provider. The financial numbers of the deal were not disclosed. However, according to sources the deal is estimated at around $1 billion.
If the numbers stand as mentioned, the value of this deal is a huge upgrade from the previous deal the league signed with Adidas back in 2006. With Adidas slipping to the third best basketball shoe manufacturing brand in the United States behind Under Armor and NIKE in 2014, the league began to make enquires for a new deal. That’s when Adidas announced in March of this year that it would not be pursuing an extension after his contract with the league expires in 2017.
"This partnership with NIKE represents a new paradigm in the structure of our global merchandising business," said NBA Commissioner Adam Silver. "As our exclusive oncourt 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 oncourt products."
Other than the financials, another major talking point of this deal is the appearance of the NIKE Swoosh on the NBA jerseys. This move is a first for the league and something that was not a part of the NBA’s previous deals with Adidas and Reebok.
"We're excited to bring the full power of our global reach, innovation and creativity to partner with the NBA and grow the game in a way only NIKE can," said NIKE, Inc. President & CEO Mark Parker. "In NIKE, Jordan and Converse we have three of the most connected brands in the world, and look forward to making the global growth of the game a successful strategy for both the NBA and NIKE."
NIKE that has been a global marketing partner of the NBA since 1992, will also be the marketing partner of the NBA Development League ( NBA D-League) for the first time. The new venture will involve marketing during the D-League All-Star Game and also the D-League Showcase. NIKE will also have an added presence at the WNBA All-Star Game and other events of the WNBA throughout the season.
Furthermore, the deal will activate NIKE’s activity during the other league activities such as the NBA Draft, NBA Summer League, NBA All-Star and the NBA Global Games. NIKE has served as the official footwear and apparel provider for USA Basketball since 2006.
It also has lucrative endorsment deals with some of the league’s biggest superstars in LeBron James, Kobe Bryant, Kevin Durant, Kyrie Irving and Russell Westbrook.