The sportswear company announced on October 21, 2024 that it has signed a 12-year extension to its global equipment, merchandising, marketing and content partnership, becoming the sole provider of jerseys and apparel for the NBA, WNBA and NBA G League is. The agreement allows Nike to continue designing and manufacturing NBA and WNBA jerseys, as well as the All-Star Game jerseys for both leagues. They will also produce on-court and fan clothing for the leagues.
“From the beginning, we had a common line, a common and shared goal to continue to grow basketball on a global basis, among boys, girls, elite players at the grassroots level and of course throughout the NBA“said Sal LaRocca, NBA president of global partnerships.”So from our perspective it was an easy decision to actually extend the contract with Nike for another 12 years.” The NBA declined to disclose financial terms.
An important signal
The partnership was formed in 2015 and took effect at the start of the 2017-18 NBA season. It was originally supposed to run for eight years. For Nike, the contract extension comes at a critical time as new CEO Elliott Hill looks to return the company to growth after it reported its sharpest quarterly sales decline since the initial shock of the pandemic in 2020.
The company’s last CEO, John Donahoe, retired this month after nearly five years in the position. During that time, a series of missteps, such as cutting ties with long-time retail partners, caused the sneaker giant to lose ground to its competitors.
The past quarter was worrying
In the quarter ended Aug. 31, Nike’s revenue fell 10% to $11.59 billion, driven by lower footwear sales in North America. As part of a turnaround effort, the company named Tom Peddie to head its struggling North American business earlier this month. Sales in the current quarter are expected to decline 8% to 10% despite stronger promotions and pricing measures.
At Nike, online retail is particularly a cause for concern. Hill’s predecessor John Donahoe’s strategy included relying more on direct sales. The downside, however, was that the shelf space Nike gave up in stores was filled by competitors’ products. This made the rivals more visible to consumers
Nike wants to actively promote the development of basketball in the USA
Hill said the partnership extension shows the company’s commitment to growing the game of basketball. He added that the company will work to create new avenues and opportunities for players and fans in the future. Working with the associations, Nike will launch programs and resources to make youth basketball accessible and scalable, create basketball programs and resources to increase access for girls of all levels, and create development opportunities for players, coaches and programs.
NBA commissioner Adam Silver said Nike was “inextricably linked with basketball“and praised the company for contributing to the growth of the sport. WNBA Commissioner Cathy Engelbert echoed that sentiment.”Since our league’s inception, Nike has been committed to a shared vision for girls’ and women’s basketball“said Engelbert.”Our continued partnership is an opportunity to strengthen development opportunities and improve touchpoints within our dynamic fan base as we showcase the WNBA globally.”
