NEW YORK (TheStreet) -- Nike  (NKE) has made a major deal to provide official uniforms for the NBA, facing down potential challenges to its dominance of the basketball apparel market. 

The eight-year global merchandising and marketing partnership will begin with the 2017 to 2018 NBA season and is valued at roughly $1 billion, according to reports. The deal will make Nike the first NBA partner to have its logo on uniforms. Nike will also supply uniforms and marketing services for the NBA Development League and the Women's National Basketball Association.

"As our exclusive on-court apparel provider, Nike will be instrumental in our collective efforts to grow the game globally while applying the latest in technology to the design of our uniforms and on-court products," NBA Commissioner Adam Silver said in a statement.

In its March earnings report, the Oregon-based sportswear giant said its robust 7% year-over-year revenue growth in the fiscal third quarter was driven by its sportswear and basketball lines, especially overseas. Shares of Nike are up 38% over the past 52 weeks. 

Currently Nike has a more than 90% market share in the basketball footwear market in the U.S., according to an analyst report from Jefferies. That's due in part to its multiple endorsements from some of the league's biggest names, including LeBron James, Kevin Durant, Blake Griffin, Kobe Bryant, Kyrie Irving and Carmelo Anthony, according to USA Today's HoopsHype.com.

But growing rival Under Armour (UA) has also signed deals with several major NBA players, including this year's MVP, Stephen Curry. Under Armour unsuccessfully tried to woo Durant away from Nike last year. Adidas (ADDYY) has deals with Tim Duncan, Harrison Barnes, Dwight Howard and Derrick Rose.

The Nike deal comes three months after Adidas announced it would not seek to renew its 11-year apparel deal with the league. At the time, the company said it was "reimagining and reshaping" its business to find new ways to help it grow long term. When Adidas originally signed its partnership deal with the NBA, replacing Adidas-owned Reebok, the agreement was valued at $400 million, according to ESPN.

Adidas, which is based in Germany, has been struggling for years to stay competitive with Nike, and more recently, with Under Armour. Under Armour has overtaken Adidas to be the second-biggest sports brand in the U.S.

Nike also produces the Jordan brand, which is estimated to bring in $2.6 billion for shoes and $1 billion in apparel and international sales for Nike each year, according to Forbes. Since 2006, Nike has also been the footwear and exclusive apparel provider of USA Basketball.

"Nike by far has the most significant global reach of any athletic company, as well as a most deeply rooted history with basketball and NBA players, which gives it an edge in raising the appeal of an American sport around the globe even further, in our view," said analysts for Jefferies in a report released Thursday morning.

Shares of Nike were climbing 0.6% in midday trading Thursday, extending a year to date rise of 8%.

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