NFL Expands Partnership With Nike and Fanatics
The NFL signed a new global partnership deal with Nike and Fanatics. The Jacksonville Florida based American online retailer of licensed sportswear, sports merchandise, and sports equipment, Fanatics, now has the exclusive product licensing rights to both manufacture and distribute all Nike NFL adult retail products worldwide.
“We’re excited to expand our relationship with Nike and Fanatics, and with it a cutting-edge model for licensed merchandise to benefit fans and retailers around the world,” stated Damani Leech, COO of International for the NFL.
The previous agreement signed in 2018 limited Fanatics’ distribution to the U.S. The partnership gives Nike control of outfitting the players and coaches while Fanatics outfits the fans.
A global expansion seemed imminent after the successful NFL London series in October. Both the NFL and Fanatics delivered record sales at the Wembley Tailgate Store run by Fanatics. While Game One between the LA Rams and Cincinnati Bengals saw numerous sales, the following weekend’s game between the Jacksonville Jaguars and the Houston Texans beat the previous record, which then solidified the need to expand the NFL products globally.
“Now our growing fanbase in cities such as London and Shanghai will have the same quick access to the widest selection of the latest merchandise as their counterparts here in the United States,” stated Leech.
To serve the international market, Fanatics has offices, manufacturing, and distribution facilities in the UK, China, Spain, Japan, Germany, Korea, Canada, and Hong Kong. Additionally, Fanatics will operate NFLShop sites across key NFL global markets in the UK, China, Germany, Canada, Mexico, and Brazil.
“This innovative partnership with the NFL and Nike is based on the premise that all three organizations are committed to providing fans with the best possible experience, quality, and choice of officially licensed merchandise,” stated Steve Davis, President of Fanatics International. “This expanded global deal, coupled with our vertical commerce model will allow us to reach more fans and retailers across the globe than ever before, with a greater assortment of merchandise which is consistently stocked and replenished.”
Nike has been partnered with the NFL since 2012 when they replaced Reebok as the league’s official uniform provider, and then in 2016, the partnership was extended from 2017 to 2019 with no significant changes. Finally, in 2018, Nike once again protracted its deal in 2018 for eight more years from 2020 to 2028.
Fanatics, on the other hand, was given the U.S. manufacturing and distribution rights to the Nike-branded NFL gear in 2018, which was then extended until 2030.
As the NFL continues to expand globally, an innovative strategic partnership with both Nike and Fanatics make such extensive growth possible. With manufacturers and retailers now located across the world, fans have greater access to their favorite team’s gear. The goal is a single marketing system that will allow the NFL to apply its global strategy in a structured and consistent manner. Vertical integration is vital in achieving market segment dominance.
