Adidas announced Monday that they will end their partnership with the NBA as the league's official uniform and apparel supplier following the 2016-17 season after deciding not to renew their contract, reports the Portland Business Journal.
The world’s second largest shoe and apparel company replaced Reebok in 2006 after adidas acquired Reebok and negotiated a reported 11-year, $400 million deal with the NBA.
Adidas' global basketball general manager, Chris Grancio, said the deal hasn't been as lucrative as they had hoped.
"We haven't been able to elevate our brand for the basketball consumer that we're targeting," Grancio told the Business Journal. "We ultimately decided that we would change our investment strategy and invest more in players on the court."
The company will instead focus on the development of new products, hopes to double its roster of NBA players by 2020 and invest more in the high school and college ranks. They recently signed Arizona State and the University of Miami to apparel deals.
According to the report, Nike and Under Armour are expected to put in bids for a new with the NBA. Nike is already the NFL's officials uniform supplier.
"We thought now was the best time to finalize some key decisions," Grancio said. "The NBA is a great partner. We think there are bigger opportunities in terms of player marketing and brand marketing."
- Scooby Axson