Report: Nike Close To Long-Term Uniform & Apparel Deal With NBA
Would you like this to go down?
The NBA is looking for a new sponsor outfit the league and its fans with Jerseys and apparel. After their contract with adidas ended, the floor was wide open to listen to offers. The number one choice is pretty obvious, who wouldn't go with Nike? While an official deal hasn't been announced nor agree upon, sources say things are looking really good for the Swoosh to team up with the NBA.
Read the report via Sports Business Daily:
Nike is close to securing a long-term NBA uniform rights deal. Sources said the framework for a deal has been reached, the outline of which will be presented to ownership today in N.Y. during a meeting of the Exec Committee and tomorrow before the full NBA BOG. Multiple sources said that while the two sides have an agreement in principle, they are still some distance from a signed deal. However, Nike’s new on-court rights will not begin for more than another two years. Nike and the NBA still have “a million I’s to dot and T’s to cross,” said a senior industry source, “but it’s at that stage, as opposed to getting to the right number.”
The new deal will take effect in time for the ’17-18 NBA season, after the rights held by 11-year incumbent uniform rights-holder adidas expire. After adidas dropped out, the NBA said it hoped to announce a new uniform deal this spring. adidas’ current agreement is valued at $400M over 11 years, and a Nike deal is certainly expected to surpass that in value. Sources said that for the first time, the deal will include the rights to put a manufacturer’s logo on NBA jerseys. Currently, adidias’ logo only appears on NBA warm-ups. One source said that both Nike’s swoosh and its Jordan Brand Jumpman logo could appear on NBA jerseys. Those details will not be finalized for some time, the source added. NBA Exec VP/Communications Mike Bass would not comment on a possible agreement.
“Money is important, but compared to their TV (rights fees) this is a rounding error,” said the industry source. “It’s about which brand can help the NBA grow overseas. Having (Nike lead NBA endorser) LeBron James in an NBA uniform when he’s marketed in China is just a more powerful means of growing the league.” Aside from James, Nike’s stable of NBA endorsers includes Thunder F Kevin Durant, Knicks F Carmelo Anthony, Thunder G Russell Westbrook, Clippers G Chris Paul and hundreds of others. It has more than 75% of NBA players wearing its shoes on court, and its share of the domestic basketball shoe market is more than 90%.