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Nike has secured a renewed partnership as the exclusive uniform and apparel provider for both the National Basketball Association (NBA) and the Women’s National Basketball Association (WNBA) for an additional 12 years, as announced by the leagues on Monday.
This renewed agreement establishes Nike as the global outfitter, responsible for merchandising, marketing, and content creation for both leagues, extending until 2037. The company will oversee the design and production of uniforms, on-court apparel, and merchandise for fans.
The previous deal, which began in the 2017-18 NBA season, was valued at approximately $1 billion and was notable for being the first partnership where a brand’s logo appeared on NBA and WNBA jerseys. While the specifics of this contract renewal are not disclosed, sources indicate that it is “much bigger” than its predecessor.
As the world’s largest athletic apparel brand, Nike remains a key player among professional sports leagues and their athletes. However, the renewal comes at a critical juncture for Nike, as the new CEO, Elliott Hill, aims to reclaim market share lost during recent challenging years.
In addition to its NBA partnership, Nike serves as the official uniform supplier for the National Football League (NFL) and Major League Baseball (MLB). However, the company has faced hurdles, including a decline in sales and increased scrutiny regarding its innovation efforts.
Nike’s contract with the NFL is set to expire after the 2027 season, and the league has begun discussions with other potential bidders, including several interested competitors, as reported by CNBC. Meanwhile, the MLB contract extends until 2029, but Nike is under pressure to mend its relationship with the league due to backlash from fans and players over new uniforms introduced earlier in the year, which were criticized for issues like transparency and poor fit.
Notably, the NBA has expressed its unwavering support for Nike, asserting confidence in the partnership’s longevity. Sal LaRocca, the NBA’s President of Global Partnerships, stated, “From our perspective, we have 100% confidence in Nike on a long-term global basis. They’ve been a partner of ours in one form or another for well over 30 years.” He emphasized that the strength of this partnership eliminated the need to consider other bidders during the renewal process.
In light of the challenges faced by Nike in relation to MLB uniforms, LaRocca defended the brand, pointing out that the pursuit of innovation can sometimes lead to unforeseen complications. “I think any company that is on the edge of innovation and is always looking to push the envelope for improvement may run into some unintended consequences,” he noted.
In contrast, Nike has not faced significant backlash concerning its basketball uniforms, and LaRocca assured that new products would continue to emerge regularly.
Nike’s engagement with the NBA dates back to 1992, and its partnership with the WNBA has been in place since the league’s inception in 1997. The brand endorses many prominent players, including LeBron James, Kevin Durant, Caitlin Clark, and Sabrina Ionescu.
As of the close of trading on Friday, Nike’s stock has seen a decline of approximately 24% this year, lagging behind both its competitors and the S&P 500, which has recorded a gain of about 23%. In contrast, companies like On Running and Deckers have thrived, with stock increases of 79% and 43%, respectively. Historically, Nike has outperformed the S&P 500 by an average of around 8%.
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