The NFL has "apparently" said "no" to a proposed deal
by Nike that would call for an "unprecedented complete
apparel exclusive on licensed togs in a joint venture, with
a no rights-fee arrangement," according to Terry Lefton of
BRANDWEEK. Lefton cites sources as saying that the Exec
Committee overseeing NFLP, headed by Jaguars Owner Wayne
Weaver, "met last week and sent the deal back to Nike, still
seeking some type of remuneration." One "major concern" is
the "possibility (some might say, likelihood) of litigation"
from the league's other licensees, with one source
"identifying potential damages as high as" $100M. Nike,
which wants an exclusive ten-year deal that would "cover
everything, including footballs," will "presumably walk from
the NFL if its proposed joint venture doesn't happen," which
would "leave NFLP looking elsewhere to make up" the
approximately $220M Nike paid for its current deal that
expires after next season. A licensing exec at a rival
league said, "I don't think this deal will happen and when
it doesn't there will be pressure for [the NFL] to make up
those revenues by selling [uniform ads]" (BRANDWEEK, 5/15).
