Nike has become the latest sports brand to take on the uniforms and fan apparel of the National Football League (NFL) in America. Rivals Reebok, who have worked in collaboration with the NFL for the past decade will not have their contract renewed when it ends in 2012.
Nike's swoosh logo will feature on the pitch along with six other apparel partners. The NFL announced the companies in Chicago this month as New Era who will provide on-pitch headwear as well as fan caps and clothes. Other suppliers clung on to their contracts and will continue producing merchandise from headwear to kid's clothes. The bid did not come as a shock to sports giant Reebok, however, as an executive told journalists that he was not concerned of damage to the company if the bid was lost.
Reebok issued a statement which said that they had enjoyed their successful partnership with the NFL and released sales figures for the last decade which show that NFL licensed sales had more than doubled over the period. Since holding the rights for a decade, Reebok, owned by Adidas, has profited massively. They are holding onto their contracts with the Major Hockey League, National Hockey League and the National Basketball Association. Nike has managed to wrangle a five year deal which is expected to provide them with around $300 million in revenue and increased exposure in America.
It is perhaps unsurprising that Nike have made a bid at NFL domination, as their Swoosh logo is already prevalent on the pitch on football boots and gloves. Their profile has been further raised by individual deals with American Football players Drew Brees of the New Orleans Saints and Adrian Peterson from the Minnesota Vikings.
It is currently unknown how much Nike stands to profit from the deal, but unofficial estimates suggest they expect to profit by $350 million in apparel revenue. The President of the Nike brand, Charlie Denson, said in a statement that they believe the agreement with the NFL "enhances the Nike brand, and provides a significant opportunity to drive growth across the business."
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Article: NFL Signs Football Deal With Nike Author: Katie Clayton Publication Date: 2010-10-24 Total Views: 251 Word Count: 369 Category:Home /
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