Adidas have announced that they will not look to secure an extension with the NBA to continue to be the league’s official apparel provider after the 2016/17 season.
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The current contract between the two parties ends in 2017, and with Adidas slipping to third in the list of biggest shoe and apparel businesses in the USA in 2014, they have made it a priority to make changes by boosting their ventures elsewhere.
With two full seasons remaining on the current deal, the manufacturing giant announced that they would not be part of the bidding process in future which leaves the door open to the competitors to make their move.
“While we have enjoyed a successful long-term relationship with the league, we continually review our partner agreements to ensure they are meeting our investment and delivering on our brand and business needs,” Adidas spokesperson Lauren Lamkin said in a statement, as reported by ESPN.
“We are reimagining and reshaping our business and have evolved our strategy to look at new, cutting-edge ways to drive our brand and support our business over the long term.”
Both Nike and Under Armour have seen their businesses soar in more recent times, and both are expected to make bids to be the official uniform supplier to the NBA in two years time.
Adidas global basketball manager Chris Grancio added that the current deal, worth a reported $400m, hasn’t been as lucrative as the company had hoped as they move into a different direction having signed as many as 250 NFL and MLB endorsers each.
It has been a difficult period for the company and it has shown with their attempts to diversify and jump-start their NBA business levels by introducing sleeved jerseys.
Fans haven’t entirely taken to the designs, but company officials have insisted that they have been successful.