Nike Inc. (NKE - Get Report) is safe and Under Armour Inc. (UAA - Get Report) is out as the next official jersey supplier for Major League Baseball after Nike signed a 10-year deal with the league that begins in 2020.
Under Armour made waves in 2016 when it announced that it signed a preliminary deal with MLB to take over for Majestic as the official apparel supplier for the league once its contract runs out after the 2019 season.
However, the company announced that it was changing direction in 2018 as its financial situation changed and the company's shares went from a reliable growth stock to one of the market's worst performers.
Nike will design all MLB on-field uniforms, -- which will feature Nike's iconic Swoosh logo -- game-day outerwear and all training apparel for the league's 30 clubs, and sports merchandise company Fanatics Inc. will manufacture and distribute the apparel.
"Nike's global brand and reputation as a leader in marketing and driving innovation makes them an ideal partner," said MLB Baseball Commissioner Robert D. Manfred Jr. "In addition, Fanatics is a valuable partner who has proven to serve our fans with speed, agility and quality service. We're very excited about the possibilities this unique arrangement provides us over the next decade."
Nike shares closed up 0.2% Friday, while Under Armour shares rose nearly 3.4%.