Adidas signed an 11-year, $400 million deal in 2006 to be the NBA’s official apparel provider, but the company has dropped its bid to extend that contract when it’s up in 2017. The news was first reported by Matthew Kish of the Portland Business Journal.
Kish says the decision was made after the company was informed that the NBA was opening up the bidding process to other companies like Nike and Under Armour, the two biggest shoe and apparel businesses in the U.S. in 2014. Because of this, Adidas felt like it didn’t have a good chance at renewing the contract, and Nike or Under Armour is expected to get the next apparel deal with the NBA.
While Adidas won’t bid on the new NBA deal, basketball is still going to be a big part of the business, which will include efforts to double its roster of NBA players to 140 by 2020. There will also be more emphasis on amateur basketball, innovation when it comes to new basketball products and more advertising.
With Adidas not renewing, I’m sure everybody is now wondering whether the mostly hideous short-sleeved jerseys will be going away as well. I sure hope so.