Nike succeeded in extending its exclusive uniform supply contract with the NBA.
Nike has signed a new 12-year contract as the exclusive supplier of uniforms and apparel to the NBA and WNBA, the two leagues announced Monday (local time).
The previous contract began with the 2017-18 NBA season and was reportedly worth around $1 billion. The value of the new deal is unclear, but sources said it is “significantly larger” than the previous deal.
Under the agreement, Nike will serve as the league’s global apparel, merchandising, marketing and content partner until 2037.
Nike, the world’s largest sports apparel company, has long been a popular brand among professional sports leagues and athletes. But Nike, which has lost market share in recent years, is putting more effort into maintaining important partnerships.
The NFL’s contract expires after the 2027 season, and the league is already negotiating with several competitors. The contract with MLB is valid until 2029, but complaints about the new uniforms have been raised from players and fans, necessitating an adjustment in the relationship.
Meanwhile, Sal LaRocca, the NBA’s president of global partnerships, expressed 100% confidence in the partnership with Nike and said the deal was not open to other bidders. He emphasized that Nike is essential to basketball and has been a partner for more than 30 years.
Nike has maintained a partnership with the NBA since 1992 and the WNBA since its founding in 1997, sponsoring major players in the league such as LeBron James, Kevin Durant, and Caltain Clark.
Nike’s stock price is down about 24% this year and is underperforming its peers and the S&P 500 Index.
Reporter Jeon Ga-eun
