Nike, the well-known sports apparel and footwear manufacturer, has announced a major extension of its partnership with the NBA and WNBA. The new 12-season agreement gives Nike exclusive status as a supplier of uniforms and other apparel to these prestigious leagues. The partnership will also include continued collaboration on marketing and content. The move underscores Nike's commitment to taking basketball to the next level while focusing on the needs of athletes and fans alike.

Yesterday, in New York City, a major event was held where Nike officially announced that it will continue its partnership with the NBA and WNBA. The company's CEO, Elliott Hill, who took the helm last week, used the occasion to stress that this collaboration is proof of Nike's continued focus on athletes and consumers. "If we can keep athletes and fans at the heart of what we do, we will be able to come up with new and exciting ways to celebrate the game and help grow it," Hill said.

A number of sports stars appeared at the event, including two-time NBA champion Kevin Durant, WNBA Rookie of the Year Caitlin Clark, as well as Sabrina Ionescu, who led the New York Liberty to a WNBA victory on Sunday. Hill also pledged that Nike plans to introduce programs and resources for young up-and-coming basketball players, with a focus on partnering with initiatives like the Jr. NBA, Jr. WNBA, Basketball Without Borders and the Elite Youth Basketball League.

Jordan Brand President, Sarah Mensah, commented: "This agreement reflects our ongoing commitment to growing the game. The athletes and the game itself are at the heart of everything we do, and this extension further strengthens our collective pursuit of excellence."

Nike has been a partner of the NBA since 1992, the WNBA since its inception in 1997 and the NBA G League since the 2017-2018 season. This long history of collaboration shows how strongly Nike is connected to professional basketball in the US.

Nike's most recent deal with basketball leagues, which began during the 2017-18 NBA season, was reportedly worth $1 billion and marked the first time an apparel partner had its logo on an NBA or WNBA jersey. It's unclear what Nike's contract extension with the leagues is worth, but a source familiar with the deal characterized it as "much larger" than the previous contract.

The new move from Eliott Hill comes at a time when the company is facing pressure from investors. Shares of Nike have fallen 20% since former CEO John Donahoe took office in January 2020. In the past month, the stock has fallen nearly 6%, and in its fiscal first-quarter report, the company reported earnings below Wall Street expectations, with profits instead beating estimates by 18 cents. CFO Matthew Friend, meanwhile, noted that "a return to that size takes time."

Elliott Hill, who has 32 years at Nike, decided to support changes that could bring a quicker response to the challenges facing the company. Hill, who started as an intern in 1988, has been involved in the development of many products and brands during his career, including the iconic Jordan brand. His ambition and commitment to performance contribute to the expectation that Nike will be able to take not only its brand, but basketball itself, to new levels.

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Source. Finance