8 Years Of Renewal With NFL, Nike's Grip On The Most Profitable Business Of The North American Professional League

As an equipment sponsor of NFL, it is undoubtedly an excellent advertising platform for sports brands.

Nike is clearly not giving up the most commercially valuable professional league in North America.

In March 29th, the US brand formally signed a 8 year sponsorship contract with NFL, which came into force in 2020.

After the renewal, Nike continued to be the exclusive equipment supplier of the 32 teams of the league, including jerseys, gloves, shoes and other equipment during the match.

At the same time, NFL alliance and Nike signed a personal sponsorship agreement, players will also receive the brand's customized sneakers and gloves.

The two sides did not announce the value of the new contract. Nike has disclosed that the last 3 year contract involved 9 digits, or hundreds of millions of dollars.

In the 2017-2018 season, Nike became an equipment supplier of the NBA Alliance for 8 years and 1 billion dollars, but the cost of American brand in the NFL equipment contract was even higher.

Nike logo appeared on NFL Jersey.

Nike sees the highest commercial value of NFL in the North American professional league.

Rugby is the most loved event of the American people and is regarded as "national ball".

Among the four major professional leagues in the United States, including NBA, NFL has the greatest influence and appeal.

An intuitive comparison is that the total revenue of NBA is about $5 billion, while NFL is more than $9 billion, almost two times that of NBA.

According to the statistics of Forbes, in 2016, the brand value of NFL was US $630 million, ranking higher than the Olympic Games and the world cup.

The super bowl of the NFL finals, known as the "American Spring Festival Gala", has a commercial value of 470 million dollars, and the price of the Super Bowl advertised is an average of 5 million dollars per 30 seconds.

In terms of team value, NFL is also far more than NBA.

According to the 2016 data, NFL Dallas denim is valued at $4 billion 200 million, the highest value in the world, and the final buffalo Bill valuation is $1 billion 500 million. The total value of the 32 teams in the league is 75 billion dollars.

In contrast, Nicks, the most valued NBA in New York, is 3 billion dollars, the lowest pelican is only 650 million dollars, and the 30 teams are valued at 37 billion 500 million dollars, only half of NFL.

To become the equipment sponsor of the alliance, it is undoubtedly an excellent advertising platform for the sports brand.

In fact, before 2000, the NFL equipment market was divided up by several brands such as Nike, Adidas and PUMA, and they sponsored several teams respectively.

But the alliance realizes that this business model is very bad for them and keeps them away.

Important links such as design, product innovation and quality supervision.

In order to change this multi brand sponsorship model, NFL has called 32 teams to vote, of which 30 have supported Reebok. At that time, Reebok was one of the most influential brands in the industry and was firmly in the third place in the US market.

Subsequently, NFL unified the equipment contract for sale. The 10 year exclusive sponsorship contract is worth more than 250 million dollars.

In 2005, Reebok was bought by Adidas at the cost of 3 billion 100 million euros (US $3 billion 800 million), and the sports brand began to go downhill.

In 2010, with the shrinking market share and declining trend, Reebok failed to keep the NFL contract, and announced that it should turn from professional sports to sports fitness.

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As a recipient, Nike replaced Reebok as a new sponsor of NFL in 2012, and then showed a new improved version of the 32 teams in Broolyn, New York.

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In 2015, Nike renewed its agreement with NFL on equipment sponsorship until 2019.

Now, with the US brand renewing a 8 year contract, Nike will still play the leading role in the North American rugby union.