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.