Nike is close to signing a long-term deal to secure the NBA uniform rights, reports Sports Business Daily’s Terry Lefton, bringing another high-profile league’s uniform contract to the sportswear giant’s portfolio that already includes the NFL. While an official agreement is still a ways off, the outline of the deal is said to be in place, and will be presented to the NBA’s Executive Committee today in New York, and then the full NBA Board of Governors tomorrow.
The next NBA uniform (and on-court apparel) deal will begin in the 2017-18 season, after the expiration of Adidas’s current 11-year, $400 million contract. Nike’s rumored deal will of course exceed that financial number — it could double it, in fact — and it’s believed that it will also include the right to place a manufacturer logo on the jersey, an NBA first. (Adidas’s logo currently appears on team’s pre-game warm-up gear.) Further, sources indicate Nike could use both its Swoosh mark and the Jumpman logo of Jordan Brand on jerseys.
While not a huge surprise, Nike’s status as the frontrunner to outfit the NBA does raise some questions. Such as why the brand, already far and away the industry leader in basketball, would pay potentially nine figures per year for promotion in a sport they already dominate. In fact, Nike and its Jordan subsidiary already own more than 90% of the domestic basketball shoe market.
But underscoring the Swoosh’s synonymity with basketball may be a proactive move against upstart sportswear companies like Under Armour, and the NBA’s rapidly increasing popularity in Europe and Asia also presumably figures heavily into Nike’s plan. Most of the brand’s revenue is still derived overseas.