words // Darren Griffin:
Back in March it was announced that adidas had dropped its bid to extend their apparel contract with the NBA, a partnership that expires in 2017. This abrupt and ill-timed departure by adidas quickly led many to believe that the duel for the NBA deal would almost immediately fall in the hands of Nike and Under Armour. And it did. But according to reports from the SportsBusiness Journal today, Nike looks to be pulling away in the ongoing negotiations.
Said by those with intimate knowledge of the situation, the NBA is set to announce a new partner later this month and a deal with Nike is all but done. It’s said that the “framework” is in place and Nike’s global reach is a large contributor to their sizable lead in the race to outfit the association. In their last fiscal year, Nike had $13.8 billion in sales outside the US. And then, of course, there is their 95% stronghold of the basketball sneaker market. Under Armour, respectively, tallied $288 million in sales in their last fiscal year. Unfortunately that number pales in comparison to that of Nike, and could be among the more noteworthy determining factors in this upcoming decision. Stay tuned for more news on this story as it develops.
