Nike is strengthening its connections with the NBA and WNBA in 2024 as basketball’s popularity surges. The company recently signed a 12-year agreement to serve as the exclusive uniform and apparel provider for the NBA, WNBA, and NBA G League. This strategic move aims to combat a sales slowdown and achieve $2 billion in savings over three years. For fiscal 2024, Nike reported revenues of $51.4 billion, marking only a slight increase compared to the previous year.
After replacing CEO John Donahoe with veteran Elliott Hill, Nike is refocusing on innovation to distinguish itself from competitors. Historically tied to basketball since its 1984 collaboration with Michael Jordan, Nike’s basketball segment generated around $6.9 billion in fiscal 2024, making up about 14% of its total sales.
The partnership coincides with notable events like the Paris Olympics and record NCAA women’s championship viewership, highlighting the growing interest in women’s basketball. Furthermore, the WNBA plans to expand from 12 to 15 teams by 2026, fostering new market opportunities.
With prominent athletes like Caitlin Clark signing lucrative deals and the league’s rising viewership, Nike has an opportunity to boost its lifestyle segment by emphasizing women’s sports. Industry analysts emphasize that if Nike wants to maintain its competitive edge, it must quickly adapt to fashion trends while continuing to promote its basketball roots.