SOURCES: NFL OWNERS CLOSE TO APPROVING UNIFORM RIGHTS FOR NIKE
Numerous industry sources said that NFL owners are close to approving a five-year deal that would see Nike acquire uniform and sideline apparel rights for the league's 32 teams, while New Era, the longtime MLB on-field rights holder would, for the first time, gets NFL sideline rights for caps. The deal is subject to ownership approval. The new rights would take effect after next season. Nike was last on NFL fields with uniform rights in '01, and has since been visible in NFL games only through footwear and glove rights.
What the league will do with off-field apparel rights is not as clear, but sources said Twins Enterprises will get rights in the "downstairs" discounter category for caps, with G III and VF gaining additional rights across different levels of retail distribution for fan-wear, like jackets, hoodies, and T-shirts. In addition, it is unclear who between Haddad or Outer Stuff would win the kids rights, but they both could emerge by splitting them.
Sources said Under Armour retained its rights to the NFL scouting combine, along with limited apparel rights. Sources stressed that particularly in the kids area, the arrangement was still fluid and subject to the approval of NFL ownership. The NFL Business Ventures Committee, chaired by Jaguars Owner Wayne Weaver, is meeting today in Chicago on the matter, with the full ownership due to consider the subject Tuesday.
Without any rights from incumbent Reebok/adidas in the NFL mix, and with Under Armour still having limited rights, Nike would have to be considered a winner, since it would be regaining rights to America's top sports property while its chief rivals are left with either reduced or no rights. Sources said UA was already in the market trying to sign more high-visibility NFL players to add to its marketing arsenal.
Another interesting facet of the pending apparel agreement is that it sees a new direction for New Era, which has grown largely because of its longtime relationship with MLB, for which it has held exclusive on-field cap rights since '94. Now New Era is moving aggressively for growth with a pricey NFL license. New Era acquired apparel company 5th & Ocean in August '09. "It's a bold statement by New Era," said one licensing industry veteran. "They are trying to show the industry they are more than just a baseball company."
Reebok/adidas became the official equipment supplier with the NFL in '01 and was paying a reported $25M a year.
Numerous industry sources said that NFL owners are close to approving a five-year deal that would see Nike acquire uniform and sideline apparel rights for the league's 32 teams, while New Era, the longtime MLB on-field rights holder would, for the first time, gets NFL sideline rights for caps. The deal is subject to ownership approval. The new rights would take effect after next season. Nike was last on NFL fields with uniform rights in '01, and has since been visible in NFL games only through footwear and glove rights.
What the league will do with off-field apparel rights is not as clear, but sources said Twins Enterprises will get rights in the "downstairs" discounter category for caps, with G III and VF gaining additional rights across different levels of retail distribution for fan-wear, like jackets, hoodies, and T-shirts. In addition, it is unclear who between Haddad or Outer Stuff would win the kids rights, but they both could emerge by splitting them.
Sources said Under Armour retained its rights to the NFL scouting combine, along with limited apparel rights. Sources stressed that particularly in the kids area, the arrangement was still fluid and subject to the approval of NFL ownership. The NFL Business Ventures Committee, chaired by Jaguars Owner Wayne Weaver, is meeting today in Chicago on the matter, with the full ownership due to consider the subject Tuesday.
Without any rights from incumbent Reebok/adidas in the NFL mix, and with Under Armour still having limited rights, Nike would have to be considered a winner, since it would be regaining rights to America's top sports property while its chief rivals are left with either reduced or no rights. Sources said UA was already in the market trying to sign more high-visibility NFL players to add to its marketing arsenal.
Another interesting facet of the pending apparel agreement is that it sees a new direction for New Era, which has grown largely because of its longtime relationship with MLB, for which it has held exclusive on-field cap rights since '94. Now New Era is moving aggressively for growth with a pricey NFL license. New Era acquired apparel company 5th & Ocean in August '09. "It's a bold statement by New Era," said one licensing industry veteran. "They are trying to show the industry they are more than just a baseball company."
Reebok/adidas became the official equipment supplier with the NFL in '01 and was paying a reported $25M a year.
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