NBA News: Adidas Not Renewing Sponsorship; Nike Stepping In?

Adidas will not be renewing its NBA sponsorship contract, and Nike and Under Armour are ready to rebound.

QZ.com reported that since 2006, Adidas has been sponsoring NBA athletes. However, the company announced that they will not be bidding to renew their contract, which expires in 2017, to focus on other aspects of the NBA.

Adidas stated, "We have decided to not renew our partnership as official outfitter of the NBA after our current contract expires following the 16-17 season."

This means that NBA players will no longer be wearing Adidas jerseys and that two other sports apparel giants will most likely be stepping in Adidas' place.

Yahoo reported that Kevin Plank, Under Armour CEO, said in 2014 that he is cautious when getting into big deals. He said he has to understand and compare the details to ensure that the company is getting value for the huge amount it is paying for.

There is speculation that Under Armour will want to bid to acquire overseas exposure. Nike is still much larger and ahead of UA, as far as basketball sneakers are concerned. Overall, UA is still the underdog in a bidding war against Nike, who is 10 times bigger.

USA Today reported that Adidas has slipped to third place in sports apparel, while Under Armour continued to move up to take No. 2. Kevin Plank spent time at NBA headquarters to talk to NBA Commissioner Adam Silver and other marketing staff. They were particularly impressed with how Under Armour has grown significantly in the past few years.

Nike's advantage is that the NBA is already very familiar with the brand. Nike was the official apparel sponsor of the league until 2004. At present, Nike is the official apparel sponsor for USA Basketball. Nike and Jordan Brand have contracts with some of the biggest talents in the NBA such as LeBron James, Kobe Bryant, Kevin Durant and Kyrie Irving, among others.

Under Armour has also been very aggressive in acquiring NBA stars, such as Stephen Curry. Adidas, on the other hand, plans to focus more on signing individual NBA players.

New York Times wrote that Nike and Under Armour are expected to enter a serious bidding war. Nike is predicted to bid aggressively to prevent Under Armour from stabilizing in the basketball sneaker category. Nike controls over 85 percent of the basketball footwear market in the United States and will be fighting to keep its share in the same manner that it outbid Under Armour to keep reigning NBA MVP Kevin Durant.