Nike will replace Adidas, the N.B.A.’s official provider of on-court apparel, in the 2017-18 season with an eight-year deal that will allow it to manufacture authentic and replica jerseys for retail markets.
The agreement, which was announced Wednesday, is worth about $1 billion, more than double the value of Adidas’s deal, according to an executive briefed on the details of the contact who was not authorized to speak publicly. Adidas’ deal was originally for $400 million over 11 years, but was amended over the years to be worth more.
The league said the deal will let Nike put its logo on uniforms — a first for its official apparel maker — but that it will not count as uniform advertising. The league has plans, but no timetable, for putting ads on uniforms. Commissioner Adam Silver has said that uniform advertising is inevitable.
In a statement, Silver said that 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.”
Mark Parker, the president of Nike, said its offerings — under the Nike, Jordan and Converse names — are among the “most connected in the world.”
Under its contract, Nike will be able to sell T-shirts, shorts, headwear, sweatshirts and socks, and authentic and Swingman replica jerseys.
Ira Mayer — a consultant to various businesses in the licensing industry and the former owner of The Licensing Letter, a trade journal — estimated that the deal probably would bring Nike about $1.5 billion annually in retail sales.
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.”
“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.”
