Adidas has struck a multiyear deal with Dick’s Sporting Goods to develop an exclusive line of baseball equipment, marking the sporting goods company’s first U.S. foray in the sport beyond footwear and apparel.
The relationship will create an extensive series of gear including gloves, aluminum bats, balls, helmets and catchers gear for both youth and adults at the midtier and premium price levels. The products will be sold only in Dick’s stores.
To promote the product line, Adidas renegotiated its endorsement deal with Philadelphia Phillies slugger Ryan Howard, the 2006 NL MVP, to go beyond his existing positioning for footwear and apparel.
Adidas renegotiated its deal with Ryan Howard
so he could promote the new line.
Howard will be featured in a marketing campaign that will cover TV, traditional print ads and advertorial placements. The new baseball gear, developed primarily by Dick’s and carrying the Adidas brand, will also receive extensive display treatment within Dick’s stores.
Financial terms of the Dick’s-Adidas deal were not disclosed.
The venture is not without some risks, however, as youth participation in baseball showed several years of marked decline in the late 1990s and early 2000s. Even with small rebounds in participation in the last two years, other controversies, such as an active debate over the safety of metal bats, have placed the sport under steady pressure.
Still, Adidas and Dick’s executives said they see significant opportunity in a relatively underserved market.
“We’re trying to take a much more holistic approach to the sport, and this is a space where we haven’t really played before,” said Patrik Nilsson, president of Adidas North America. “This also is part of a larger, evolving strategy we’re developing through these types of partnerships to reposition our products in stores. We have a very good mindshare in this country relative to our primary competitor [Nike], but we’re not as close on market share, and we’re trying to close that gap.”
To that end, the baseball deal follows the path set by Adidas’ exclusive apparel line with Dale Earnhardt Jr. This week marks the start of sales for that Adidas JR Nation line of merchandise. The Sports Authority is taking a lead role for those initial retail sales.
Adidas previously sold baseball gloves and bats in Japan for the high-end market with success. Nilsson acknowledged that the exclusive deal with Dick’s could lead other retailers to stop selling Adidas baseball cleats.
“The thing that makes this really work for us is that the gear cuts across all skill levels and price points,” said Jeff Hennion, Dick’s executive vice president and chief marketing officer. “If this was just about a $300 bat that only the most elite players would gravitate to, it wouldn’t really help.”
