Adidas will not renew official apparel deal with NBA
The bid will come down to Nike or Under Armour, most likely, as long-time partner says their deal hasn't been as lucrative as they hoped.
By
Matt Moore
•
2 min read
Adidas is getting out of the NBA apparel racket, at least officially. The Portland Sports Business Journal has the scoop confirmed by Adidas that they will not put in a bid for the NBA's official licensing contract, after the league informed its partner it would open the bid to other companies.
The German company has dropped its bid to extend its apparel contract with the league and instead will focus on developing new products, endorsing more amateur teams and doubling its roster of NBA players.
The company, which has its North American headquarters and basketball division in Portland, has been the league's apparel partner since it signed an 11-year deal in 2006 for a reported $400 million. The company has been in talks with the NBA about an extension since 2012 but this month decided to walk away.
A source familiar with the bidding process said Adidas made the decision after it was informed last week that the NBA planned to open the competition to other bids. The source noted Adidas has fallen behind its competitors.
The move by the NBA likely meant Adidas would have been a longshot to renew.
Chris Grancio, Adidas' global basketball general manager, said the deal hasn't been as lucrative as hoped. Adidas has been unable to make up lost ground with Nike and its Jordan brand, which account for roughly 96 percent of the basketball shoe business.
"We haven't been able to elevate our brand for the basketball consumer that we're targeting," Grancio said. "We ultimately decided that we would change our investment strategy and invest more in players on the court."
Translation: This thing's going to Nike unless Under Armour puts in some sort of crazy bid. Under Armour recently became No.2 in global sales and just launched its first signature shoe for a basketball athlete, with the popular Curry 1 for Steph Curry. But Nike has pretty much infinite resources to snag this deal.
Adidas meanwhile doesn't appear to be bailing from the basketball market any time soon, building its athlete brand around John Wall and Damian Lillard, as well as Derrick Rose who continues to sell well despite his injuries. But this shows how tough it is to even wrench a finger off Nike's hold on the basketball market. And it means that there will likely be some dramatic changes to the design of team and All-Star uniforms in the future.
