The company vaulted itself into the top ranks of golf equipment manufacturers when it built its complete product line around Tiger Woods. As of , the company is tied to almost everything in the athletic department at Knight's alma mater, the University of Oregon. It also has deals with many college and pro sports teams that use its equipment exclusively. The company has some unique sponsorship deals with the Indian national cricket team, the national soccer teams in Brazil and Portugal and soccer teams like Manchester United.
Nike uses these deals to get its logo in full sight on uniforms and inside stadiums throughout the world, which constantly enhances the visibility of its products. Nike takes its sponsorships to a personal level through the sponsorship of clinics and camps.
The company sponsors youth golf schools, basketball camps and track and field events as a way of making its name synonymous with sports success in the eyes of the young participants. Kit Supplier Partnerships. Kit Supply Overview. Deals: Engaging in kit supplier deals provide Nike with the visibility and growth opportunities a brand of its size desires. Nike use a geographical approach to the targeting of kit supplier deals in soccer, whereby the US sportswear giant targets teams in key cities around the world e.
Nike switch up the kit supply game in move towards pay-for-performance contract. The outcome of the negotiations was that Liverpool chose to drop New Balance in favour Nike, agreeing a five-year deal in principle.
The Contract. Nike in its new kit supply deal with Liverpool has changed the kit supply market. Date courtesy of: Kieran Maguire. For Nike and kit suppliers in general , a more pay-for-performance type contract is preferable as revenues are less susceptible to negative team performances and changes in consumer behaviours.
On this occasion Nike was able to negotiate the agreement towards this type contract as despite the challenge of New Balance it knew Liverpool wanted to strike a deal with themselves, mainly because it was the only brand able to properly satisfy Liverpool's desire for a vast and worldwide distribution network.
It therefore held the power in negotiations. Additionally, as mentioned, Nike was able to successfully pitch that with its marketing nous, the contract will still generate a greater profit for the Merseyside club. On the whole however, we anticipate Nike to be able to be able to continue striking deals in this manner and drive down the value of kit supply deals in general.
This is mainly due to a decrease in competitiveness for kit supply contracts from challenger brands, such as Under Armour and New Balance, as they have stopped bidding for as many contracts as they fail to make the numbers work. Meanwhile, the detrimental impact of COVID on the apparel sector as a whole will see a further drop in the number of brands bidding for agreements, handing further negotiating power to Nike.
The deal also forms part of a shift towards transparency and accountability in the sponsorship arena and Sportcal expect the Nike and Liverpool pay-for-performance contract to be the blueprint for future kit supply deals for Nike and the wider kit supply market. Nike show commitment to esports through kit supply agreements. Esports sponsorships, like to other non-endemic brands, have become an intriguing, and attractive proposition due to the potential to reach a millennial demographic, a market which is traditionally difficult to reach through other sports, or indeed any other traditional marketing medium.
Nike has been the most significant mover in the apparel market. The agreement sees Nike supply kit for all 16 teams in the LOL Pro League , supplying them with trainers, casual clothing and professional jerseys. This deal is estimated to be the largest deal signed by an apparel brand in esports today. Nikes investment in the space continued into , announcing a further three sponsorship agreements with esports properties in January. This includes a deal with T1 Entertainment and Sports, a major Korean esports venture.
Nike set to lose BCCI kit supply deal. Nike, one of the oldest sponsors of the Board of Control for Cricket in India BCCI in a partnership that dates back to , look set to lose their kit supplying rights of the Indian cricket team. Athlete Endorsements.
Athlete Endorsement Overview. For years, athletes have been the gateway for brands to tap into their fan base and reach their target demographic, but the rise of social media has amplified their influence to unprecedented levels, making athletes more monetizable than ever.
Nike have taken athlete endorsements to new heights by signing lifetime agreements with Michael Jordan, Lebron James and Cristiano Ronaldo. For example, Cristiano Ronaldo has a unique global influence that other athletes cannot compete with.
He is the most followed athlete on social media, with over million followers across Facebook, Instagram and Twitter. The post saw 1. But court filings do say that at least one individual who pleaded guilty to the scandal used money from an unnamed sportswear company to bribe FIFA officials.
That sportswear company got the sponsorship deal with the Brazilian national soccer team in That's the year Nike signed its first contract with Brazil.
The indictments don't accuse the unnamed sportswear company with making any bribes itself, a fact that Nike points out when asked about the deal and FIFA indictments.
And Nike has made no disclosure to the SEC that it or any employee is under investigation, which it would be required to do if that were the case.
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