Shoe deal history has just been made in the NFL. In a last ditch effort to prevent rising star Odell Beckham Jr. from jumping ship to one of its biggest rivals, Nike (NKE) reportedly agreed to pay the New York Giants’ wide receiver roughly $29 million over the next five years, representing more than twice the highest amount the Oregon-based company had previously shelled out for a football player, according to ESPN.

Nicekicks.com, which first broke the news, claims that this landmark agreement could be worth as much as $48 million over eight years, provided that certain triggers are met. The sneaker website also added that additional incentive clauses alone could add $1 million per year to the original contract, bringing the total amount Beckham earns on the deal to about $6.8 million per year.

Adidas (ADDYY), which has recently been stealing market share from Nike in the U.S., is believed to have played a key role in hiking the wide receiver's payout. According to Nikekicks.com, the German apparel and footwear maker forced Nike into a bidding war for Beckham's services after it, too, entered negotiations with the New York Giants’ player. (See also: Adidas Stomps Nike in North America and China.)

Nike, whose previous rookie shoe deal with the Giants player had just expired, eventually opted to exercise its right to match whatever Adidas was offering.  

What Is Nike Getting in Return?

Nicekicks.com reports that Nike’s latest contract with Beckham will include much more than a signature pair of cleats. The sporting brand is also expected to use the deal to promote a wide selection of apparel in a bid to fully capitalize on the popularity of the football player, who at the time of the announcement boasted 8.3 million Instagram followers, 2.3 million Twitter followers and 1.3 million Facebook followers. (See also: Nike Bulls: Stop Worrying About Future Orders.)

Nike has developed a reputation for breaking the bank to sign endorsement deals with the world’s biggest sports names. Its most expensive sporting clients to date, excluding Beckham, include soccer star Cristiano Ronaldo and NBA basketball icons Kevin Durant, Lebron James and Michael Jordan.

 

 

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