Nike close to deal with NBA?

At the end of the NBA (National Basketball Leagues)’s 2016-2017 season, Adidas will cease to be the official on-court apparel supplier for the internationally publicized sports league.

Adidas has already announced that it would not be signing a new deal, preferring to devote its budget to sponsoring athletes in the US.

And since that announcement, speculation has abounded as to who will take its place as the league’s official supplier, Nike and Under Armour appearing as the most credible candidates.

Indeed, negotiations are well under way. According to Sports Business Daily, which sites sources familiar with the matter, the two parties may even be close to finalizing a deal. Nike executives and the NBA appear to have reached an agreement in principle.

The online trade publication reports that Adidas paid more than 400 million dollars for its 11-year contract, and that Nike would sign an even bigger check. One of Nike’s logos (the Swoosh as well as the Jordan Jumpman) might also appear on players’ uniforms for the first time during the 2017-18 season.

In the US, Nike is undoubtedly the king of basketball. No less than 75% of NBA players play with Nike or Jordan shoes, and the group controls 90% of the market. But by acquiring these rights, Nike will be pulling the rug from under the feet of Under Armour, which has been increasingly on the offense.

And, since the NBA also has a large presence abroad, the deal would give the organization new means of expanding further at the international level.

Some experts even see an opportunity to further expand its retailer House of Hoops.

Nike close to deal with NBA?

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