Nike Will Replace Adidas As NBA's Exclusive Jerseys Sponsor.

Competition has always been the focus of attention of sports brands. This Wednesday, NBA and Nike Announced the conclusion of a co operation agreement, Nike will replace Adidas as NBA's exclusive jerseys sponsor. The cooperation between the two sides will start from the 2017-18 season, and the contract length will be eight years. According to people familiar with the matter, the contract is worth about 1 billion dollars.

Thanks to Nike, CONVERSE (Converse) and Jordan (Jordan) and other brands, Nike has already controlled over 90% of the basketball shoes Market in the United States, and is also the equipment supplier of the US national team. Since 1992, Nike is the official partner of NBA. Its spokesmen include Lebron James, Kevin Durant and Kirby Brian. Now, Nike will win a sponsorship contract for the NBA Jersey, and will provide competitive clothing, training suits and sports coats for the NBA team.

What's different is that Nike's Logo will appear on the NBA players' uniform. This is the first time that NBA has authorized the Logo of a cooperative venture to get on the team uniform. Previously, Adidas Logo can only appear on warm-up clothes and training shirts.

In the last fiscal year, Nike's basketball equipment sales increased to $3 billion 100 million, up 19%, the largest addition to its running gear. Analysts have pointed out that printing Logo on a match suit will promote sales, but more importantly, Adidas or UA competitors are not allowed to show their faces on the Jersey.

NBA's contract with Adidas will expire in 2017. Earlier this year, Adidas said it would not renew its contract with NBA. The two sides began to cooperate in 2006, estimating that the value of the 11 year contract is US $400 million. But Adidas executives say the contract revenue is not as rich as they had hoped before.

Adidas is no longer in the US. Last year, Adidas's second largest sportswear position in the United States was replaced by Under Armour. In 2012, Adidas's Reebok lost its cooperation with NFL's jersey equipment, and the next one was Nike.

Adidas said it would pay more attention to sponsorship cooperation with star players in the future.

It is reported that Under Armour also tried to quote NBA, but ultimately failed to win the cooperation.

At the same time, Nike also reached a market cooperation agreement with WNBA and NBA D-League.

After the announcement, Nike's share price rose 1.1% to $104.5.