Nike announced it will be the exclusive uniform provider for the NBA and WNBA for another 12 seasons. Despite the news, stocks for the company have continued to drop in todays premarket movements.
Under the terms of the agreement, Nike will serve as the league’s global provider for outfitting, merchandising, marketing, and content until 2037. The company will also be responsible for creating and producing uniforms, on-court apparel and fan merchandise.
Following the announcement, Sal LaRocca, the NBA’s president of global partnerships, said, “It was obvious to us that the deal was working as good as it could be from the NBA’s perspective,”
“Nike’s investment in the NBA, the WNBA, the G League, grassroots basketball, boys and girls elite-level basketball, is critical — we think — to our long-term goals to continue to grow the sport of basketball on a global basis.”
Showing her support for the collaboration, Tanya Hvizdak, the Vice President of Athlete Sports Marketing at Nike stated, “When you think about just the future of sport, this is going to be such a foundation for us,”
“The growth of the game has been massive. You saw everything around the participation and the viewership coming out of the Olympics and the NBA is just going to be an opportunity around that 365 [day] consumer demand, to continue to build off of that.” Hvizdak said.
Nike has faced several challenges this year, but the company is optimistic that its new NBA/WNBA deal and the appointment of new CEO Elliott Hill will help improve its stability. The company’s stock has dropped by approximately 24% this year and has underperformed its two main competitors.
Nike’s previous deal with the basketball leagues, which began during the 2017-18 NBA season, was reportedly valued at $1 billion.
By CEO NA Editorial Team
