Nike is close to securing NBA apparel rights from Adidas, according to Sports Business Daily.
Nike is nearing a long-term apparel rights deal with the NBA, according to Sports Business Daily.
The report says Nike and the NBA have completed the 'framework' of an agreement that will be presented to ownership and the league's Board of Governors today and tomorrow. Multiple sources told Sports Business Daily that Nike and the league are still 'some distance' from finalizing a signed deal, with plenty of details still to iron out.
The new deal would take effect for the 2017-2018 season, when Adidas' rights expire. In March, Adidas announced it would end its partnership with the league to invest in individual player sponsorships and in basketball on the collegiate and high school levels. Adidas' current 11-year deal is valued at over $400 million. A potential Nike deal is expected to be worth more than that.
According to the report, Nike's central competitor is Under Armour, but the league greatly values the overseas reach and distribution and marketing capabilities of the former, with globally-popular players like LeBron James and Kobe Bryant on its roster of sponsored athletes.
Speculation is that the new uniforms will likely include third-party ads, which NBA commissioner Adam Silver has called "inevitable." Sources told Sports Business Daily that Nike's deal will allow the company to place manufacturer logos, i.e. the swoosh and Jordan Brand's Jumpman, on uniforms for the first time, although those details have not been finalized. At present, Adidas' logo appears on team warmups and fan gear, but not game uniforms.
The NBA has said it hopes to announce its new apparel provider this spring.
- Jeremy Woo