Nike Up on NFL Apparel Rights Reports

Nike shares got a lift after the closing bell following reports that the company may be close to securing uniform and sideline apparel rights for the National Football League.
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NEW YORK (

TheStreet

) -- Shares of

Nike

(NKE) - Get Report

rose in extended trading late Monday after reports surfaced that it's close to winning uniform and sideline apparel rights for the National Football League.

The victory would be a major blow to

Reebok

, which currently holds the rights. Reebok was acquired by Adidas Group in a deal that closed in early 2006, and its partnership with the NFL has been in place since 2000, according to its

Web site.

SportsBusiness Daily

first reported that

NFL owners are close to approving the deal

, citing "numerous industry sources" and

CNBC

later followed up, saying the owners would be

presented with a proposal

on Tuesday.

Nike's stock last changed hands at $84.45, up 3%, on volume of nearly 67,000, according to

Nasdaq.com

. Year-to-date, the shares had risen 24.2% through the regular session close at $81.98.

The news could also impact

Under Armour

(UA) - Get Report

, which was also believed to be bidding for the deal. The

CNBC

report said that Under Armour would continue to supply apparel for the league's scouting combine, which usually takes place in late February.

Nike reported its fiscal 2011 first-quarter results on Sept. 23, posting a profit of $559 million, or $1.14 a share, on revenue of $5.18 billion for the three months ended on Aug. 31 The bottomline performance was well ahead of Wall Street's consensus view for earnings of $1.01 a share but the company fell short of the revenue estimate of $5.22 billion.

Investors apparently didn't mind the topline miss all that much, however, as based on Monday's regular session close, the stock had gained more than 5% since closing at $77.67 just prior to the report.

--

Written by Michael Baron in New York.

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Michael Baron

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