Thursday, June 11, 2015

Nike to replace Adidas in NBA clothing deal


NEW YORK -- Sporting goods giant Nike reached an eight-year deal Wednesday to become the exclusive on-court apparel provider for the NBA.

The contract takes effect in the 2017-2018 season, replacing a deal between the National Basketball Association and Adidas, which expires after the 2016-2017 season.

"This partnership with Nike represents a new paradigm in the structure of our global merchandising business," said NBA Commissioner Adam Silver.

"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."

Nike has targeted basketball as a major growth business due in part to surging interest in the sport in major emerging economies, especially China.

In 2014, Nike's revenues from basketball rose 19 percent to $3.1 billion, about 11 percent of total sales.

Nike already sponsors many leading basketball stars, including LeBron James, who Tuesday led the Cleveland Cavaliers to a 2-1 lead in the NBA finals against the Golden State Warriors.

In after-hours trade, Nike shares rose 0.8 percen to $104.19.

source: www.abs-cbnnews.com