Adidas had decided against trying to renew its deal with the NBA once it expires, changing its focus to individual players such as John Wall, Derrick Rose, Andrew Wiggins and Damian Lillard. Nike, long associated with the league through shoe deals, particularly with Michael Jordan and LeBron James, stepped up, in the process ensuring that Under Armour did not get the chance to put its own logo on NBA uniforms.
Nike was already a global marketing partner of the NBA, dating back to 1992, and it will also become a marketing partner with the NBA Development League. In addition, it has been a marketing partner of the WNBA since that league began in 1997, and it has been the exclusive apparel manufacturer for Team USA since 2007.
“This partnership with NIKE represents a new paradigm in the structure of our global merchandising business,” NBA Commissioner Adam Silver said in a statement. “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.”
From a Bloomberg report:
Shares of Nike rose 1.1 percent to $104.50 in extended trading after the announcement. The stock was up 7.5 percent this year through Wednesday’s close. …This marks the second time Nike, the world’s largest supplier of athletic gear, will replace Adidas as the sponsor of a major U.S. sports league. It also took over the NFL license for uniforms and apparel in 2012 from Adidas-owned Reebok.