Nike and major sports leagues have a long history of working together, which continues to bond them to this day
Nike first partnered with the National Basketball Association (NBA) in 1992. It has been a marketing partner with the Women's National Basketball Association (WNBA) since its first season in 1997 and the NBA G League since the 2017-2018 season.
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“Nike has always been more than a league sponsor — we’re a strategic partner with an unwavering commitment to growing the game, alongside the NBA, WNBA and NBA G League,” says Elliott Hill, NIKE, Inc. President and CEO.
The brand is also known for scoring a partnership with Michael Jordan in 1984, the most iconic of all time. This partnership led to the inception of its first Air Jordans line, which was released in 1985.
This partnership paved the way for Nike to endorse and sponsor some of the most elite athletes in the game and land multiple historical partnerships.
Nike scores a deal extension with major sports leagues
On Monday, Nike (NKE) announced it has extended its exclusivity agreement with the NBA, the WRBA, and the NBA G League to design the teams' uniforms for another 12 seasons.
As stated in the agreement, Nike will design and manufacture both basketball leagues' uniforms, team apparel, and fan merchandise, as well as serve as a marketing and content partner.
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Although Nike specializes in apparel and shoes, this deal expands beyond that.
The sportswear brand will also introduce programs and resources to increase access, help foster a better playing environment, and enhance program development for young aspiring female and male basketball players, including those in the Jr. NBA, Jr. WNBA, Elite Youth Basketball League (EYBL), and Basketball Without Borders (BWB).
Although it's unknown how much Nike's renewal deal with both basketball leagues is worth, its first deal in 2017 was reportedly around $1 billion, so this renewal is rumored to be worth more due to inflation and the leagues' higher spending power.
However, basketball is not the only sport that Nike has ventured into.
Nike first signed a deal with the National Football League (NFL) in 2012, which was then extended in 2018 and is set to expire after the 2027 season.
Nike also signed a deal with Major League Baseball (MLB) in 2019, which will expire in 2029.
However, this deal did not turn out as well as Nike expected. The brand was met with backlash from baseball fans who complained about the quality and poor design of its latest MLB merchandise line.
Nike continues to struggle and reports declining earnings
This incredible deal extension comes at the perfect time for Nike, which has been struggling to generate profitable revenues due to declining sales.
According to Nike's (NKE) Q1 earnings report for fiscal 2025, revenues decreased by 10% compared to the year prior, with Nike-direct revenues declining 13% and wholesale revenues down by 8%.
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Although Nike reported earnings per share of $0.70, a 26% decrease year over year, the company exceeded analysts' expectations of $0.52.
Nike is still the number one sportswear company in the U.S., and this partnership extension could be the push the brand needs to return to its glory days and protect its leading title in the sportswear industry.
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