Nike Inc. will take over the rights to outfit the National
Basketball Association in 2017, further cementing the company's
hold on the sport.
The U.S. sportswear maker, which already controls more than 90%
of the basketball footwear market thanks to its Nike and Jordan
brands, will take over the rights to outfit NBA teams when the
league's current deal with Adidas AG expires. Nike's contract will
begin with the 2017-2018 season.
Terms of the deal weren't immediately available. Nike's hold on
basketball is pervasive, running from sponsorships of youth
athletic leagues through college teams to marquee players like
LeBron James.
Germany-based Adidas said earlier this year it wouldn't renew
its contract with the NBA, which it has held since 2006. Executives
said the payoff hadn't been as beneficial as they had hoped. The
11-year contract was estimated to be valued at $400 million.
The NBA had also soured on its relationship with Adidas,
particularly because the company has been losing clout among U.S.
consumers, according to a person familiar with the matter. Last
year, Adidas slipped to third from second place in total retail
sales of sports apparel and footwear, behind Nike and Under Armour
Inc.
League sponsorship deals are highly coveted by major sportswear
makers, which use the contracts to gain influence in professional
sports. Nike currently holds the outfitting rights for NFL
jerseys.
Jersey rights for Major League Baseball are held by Majestic
Athletic, and the National Hockey League is held by Reebok, an
Adidas subsidiary.
Write to Sara Germano at sara.germano@wsj.com
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