Nike has signed an 8-year extension to remain the NFL’s game-day uniform and on-field apparel supplier. The company will also continue to issue cleats and gloves to players who maintain individual endorsement deals with the brand. As part of the long-term agreement (’21-’28 seasons), Nike has agreed to participate in “several programs; including youth and player initiatives.” Financial terms of the deal have not been disclosed.
Fan Marino: It’s safe to assume the deal’s value at least matches the $1 billion commitment (over 8 years) Nike (NKE) made to the NBA in June of 2015. While NKE has the NFL and NBA under long-term contracts, Under Armour (UAA) landed MLB’s uniform contract with a 10-year commitment (no terms disclosed) in December 2016; replacing Majestic Athletic. Adidas (ADDYY) has contracts in place with both the NHL (7 years, estimated $490 million) and MLS (6 years, $700 million) through ‘24.
Howie Long-Short: The 10-year deal that MLB signed with Under Armour (UAA) was supposed to begin in 2020, but Fanatics’ May ‘17 acquisition of VF Corp’s (VFC) Licensed Sports Group (which included Majestic Athletic) expedited the timeline. Fanatics’ $225 million acquisition means that UAA and Fanatics fan gear will now be available in time for the MLB 2018 season (including the postseason dugout collection) and Under Armour uniforms will be on-field for Opening Day 2019.
As for NKE, CEO Mark Parker stated the company was experiencing a “significant reversal” in North America following a 3rd quarter where they effectively “tightened distribution” (see: Jordan brand), “accelerated innovation” (see: Russell Westbrook signature line, Justin Timberlake Super Bowl edition) and increased digital sales double digits.
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