Nike inks $1 billion apparel deal with NBA

The NBA has signed an eight-year apparel deal with Nike, the league announced Wednesday.

The deal is worth $1 billion, according to ESPN’s Darren Rovell, and will begin with the 2017-2018 season.

Nike will take over from Adidas, which took over from Reebok in 2006 but said in March that it would not seek to extend its 11-year, $400 million deal. Nike’s agreement is worth an average of $89 million more per year.

As part of the deal, Nike will become the first apparel provider to have its logo on NBA uniforms.

“This partnership with Nike represents a new paradigm in the structure of our global merchandising business,” NBA commissioner Adam Silver said in a statement. “As our exclusive on-court apparel provider, Nike will be instrumental in our collective efforts to grow the game globally while applying the latest in technology to the design of our uniforms and on-court products.”

Nike has been a marketing partner of the NBA since 1992.

“We’re excited to bring the full power of our global reach, innovation and creativity to partner with the NBA and grow the game in a way only Nike can,” Nike CEO Mark Parker said. “In Nike, Jordan and Converse, we have three of the most connected brands in the world and look forward to making the global growth of the game a successful strategy for both the NBA and Nike.”

Nike also owns rights to NFL uniforms through 2019.