The National Basketball Association inked an 11-year merchandising partnership yesterday that will make Adidas the official uniform and apparel provider for the NBA, the Women’s National Basketball Association and the NBA Development League beginning with the 2006-07 season.
The deal with Adidas, a marketing partner of the NBA since 2002, comes as a result of the Adidas Group’s January acquisition of Reebok International Ltd.—the NBA’s exclusive uniform and apparel provider since 2001. The deal gives Adidas rights to sell NBA-branded apparel and footwear in the U.S., Canada, Europe and Asia. Reebok will maintain its ability to create NBA-branded footwear.
Financial terms of the deal were not disclosed.
“In general, what this partnership does is it increases the NBA’s ability to continue to grow as a global brand using Adidas’s facilities around the world,” said Adidas spokesperson Terrell Clark. “It also allows Adidas to leverage the partnership by having new and creative products, while being a part of the largest growing sport in the world.”
Adidas will team up with the NBA at retail to create Adidas/NBA stores globally. Adidas will also sell NBA products throughout its worldwide retail locations including 2,100 Adidas franchise stores in China. The first Adidas and NBA products, including replicas of team jerseys worn during warm ups, will hit shelves this fall.
“The Adidas brand is recognized for excellence in sports heritage and performance on a global basis,” NBA Commissioner David Stern said in a statement. “NBA and Adidas branded apparel and footwear will be available to even more fans around the world continuing our effort to expand the league’s accessibility to anywhere fans can dribble a ball or watch a basketball game.”
Adidas and the NBA plan to support the partnership through an integrated mix of global marketing and media initiatives, including NBA Europe Live presented by EA Sports in 2006 and 2007, as well as grassroots events and branded media programs throughout the 215 countries in which the league distributes content.
More than 200 licensees manufacture and promote NBA products, which are sold in more than 100,000 retail stores in 100 countries.
The Adidas Group is one of the global leaders within the sporting goods industry. Headquartered in Herzogenaurach, Germany, the group has more than 25,000 employees and estimated sales of $11.5 billion USD.
The sporting goods manufacturer is also tackling Nike, one of its major competitors, to increase its market share.
“We’re leading in several categories but one thing is sure, we want to be the leading sports brand and if we want to lead in basketball then we need the NBA,” said Erich Stamminger, president and CEO of Adidas. “With the NBA we have a new dimension.”