The move by adidas not to renew its NBA uniform deal "could have significant ramifications in the U.S. retail sportswear market," particularly for adidas, according to Germano & Jervell of the WALL STREET JOURNAL. A source said that the NBA in recent months has "become concerned about Adidas’s sliding market position in the U.S. and the manufacturer’s management structure." The league "has been troubled by the fact that Adidas last year fell to third place in retail sales of sports apparel and footwear," behind Nike and Under Armour. The league "has also been concerned about ongoing efforts to find a successor" to adidas Chair & CEO Herbert Hainer, whose contract "expires around the same time as the NBA rights end" in '17. A source said that the NBA recently contacted adidas "to inform the company that the league was planning to open up the rights-bidding process." The source added that the league "expects to name a new sponsor in April" (WALL STREET JOURNAL, 3/17). In N.Y., Tabuchi & Belson write adidas' withdrawal "could set the stage for a showdown" between Nike and UA. Citi Research analysts Kate McShane and Corinna Van der Ghinst wrote in a note last week that Nike is especially likely "to bid aggressively to buttress its dominance in basketball shoes, and to prevent Under Armour from gaining traction in that category." They noted that Nike controls more than 85% of the basketball footwear market in the U.S. Meanwhile, an NBA deal "would propel" UA's standing "in the big leagues" (N.Y. TIMES, 3/17).
TO SLEEVE OR NOT TO SLEEVE? ESPN.com's Darren Rovell noted adidas in an attempt to "jump-start its NBA business ... has pushed sleeved jerseys, as the tank top isn't as natural with fans as jerseys in other sports." Company officials have previously insisted that the sleeved jerseys "have been successful, but many fans have ripped the look" (ESPN.com, 3/16). ESPN.com's Paul Lukas wrote it is "worth keeping in mind that Nike and Under Armour are just as capable of producing a sleeved jersey" as adidas is. Still, adidas "has made the sleeved look part of its signature style in recent years, not just in the NBA but in the NCAA, as well." Lukas: "When the company leaves the NBA, the hunch here is that the sleeves will probably leave, as well -- unless the league ends up wanting to put corporate advertising patches on the sleeves" (ESPN.com, 3/16).
