Nike Inc. (NKE) and the NFL have agreed to extend their partnership for another eight years.
The two brands announced on Tuesday that a new deal has been signed to replace the current one set to expire in 2020. As part of the arrangement, Nike will continue to supply all 32 NFL teams with uniform and sideline apparel until 2028.
Nike has also been granted permission to provide gear to NFL players it has under individual contract, including top rookie prospects Saquon Barkley and Baker Mayfield, and Odell Beckham Jr. The sporting apparel giant signed Beckham to the biggest NFL shoe deal in history last year, reportedly agreeing to pay him roughly $29 million over five years. (See also: Nike Signs Biggest Shoe Deal in NFL History.)
The NFL said it was “thrilled” to prolong its partnership with Nike. "Nike has been a long-time and trusted partner of NFL and we're thrilled to extend our relationship with them," said Brian Rolapp, the NFL's chief media and business officer. “The NFL and Nike are a powerful combination and we anticipate working closely with them on several programs, including youth and player initiatives."
In its statement, the NFL refrained from providing financial details of the arrangement.
Key Sports Deals
Nike’s latest deal with the NFL cements its role as the official supplier to two of the nation’s most popular sports: football and basketball.
The Beaverton, Oregon-based giant now supplies the NBA with uniforms, having replaced German rival Adidas AG (ADDYY) beginning this season. The eight-year deal with the NBA is believed to be have cost Nike $1 billion.
Eyebrows were raised over this reported figure as Adidas’s contact, signed in 2006, was said to have cost $400 million for 11 years. According to Fortune, Nike paid more than double for a period spanning less time in exchange for having its logo appear on the uniforms worn during games. Adidas, which decided not to rebid for its contract with the NBA once it expired, did not have such an arrangement in place. (See also: Nike a Buy on Long-Term Earnings: Credit Suisse.)