Nike Extends NBA, WNBA Outfitting Partnership
Sportswear company signed a 12-year extension with the leagues
Nike NKE -1.74%decrease; red down pointing triangle extended its exclusive apparel partnership with both the National Basketball Association and the Women’s National Basketball Association.
The sportswear company on Monday said it signed a 12-season extension of its global outfitting, merchandising, marketing and content partnership deal, making it the sole on-court uniform and apparel provider for the NBA, WNBA and NBA G League.
The partnership was reached in 2015 and went into effect at the beginning of the 2017-18 NBA season. It was originally set to run for eight years.
For Nike, the renewal comes at a critical time as its new Chief Executive Elliott Hill aims to return the company to growth after it reported its worst quarterly drop in revenue since the initial shock of the pandemic in 2020.
The company’s last chief executive, John Donahoe, retired this month after nearly five years in the role, during which time a series of missteps, such as cutting ties with longtime retail partners, caused the sneaker giant to lose ground to competitors.
In its quarter ended Aug. 31, Nike’s revenue fell 10% to $11.59 billion, dragged down by fewer footwear sales in North America. In a turnaround effort, the company earlier this month named Tom Peddie as head of its struggling North America operations. Sales in the current quarter are expected to be down between 8% and 10%, despite higher promotions and pricing actions.
Hill said the company’s partnership extension displays its commitment to growing the game of basketball. He added the company will work to create new pathways and opportunities for players and fans moving forward.
In collaboration with the associations, Nike will introduce programs and resources to make youth basketball accessible and scalable, create basketball programming and resources to increase access for girls of all levels, and launch player, coach and program development opportunities.