Following news yesterday that Nike will take over apparel duties with the NBA starting in 2017, more details of this monumental deal continue to unravel today. Aside from becoming the first apparel partner to have its logo appear on all on-court uniform designs, Nike is reported to have paid the NBA a whooping sum of $1 billion for the contract rights.
A deal of this size with massive cultural influence doesn’t just affect sportswear and sneaker aficionados, it also changes global perception. And as we all know, perception is often what drives the stock market, not always tangible acts. That said, after the announcement yesterday that Nike would again be the apparel provider for the NBA, the Oregon-based sportswear giant saw stock prices increase as much as 1.7 percent to $105.12 in New York this morning.
Again, this is just with the announcement, nothing has actually happened. View this as an indicator of just how successful this new partnership has the ability to be. And if you’re sitting on some Nike stock, sit back and enjoy the gains. There’s likely more to come.
Source: Bloomberg
