Nike Makes Unexpected Change To Some Products
Nike is shaking up its apparel lines and catering to all the college sports fans out there with an exciting new partnership.
This article is more than 2 years old
Nike is the current worldwide leader in athletic clothes. Though the company has had many brand partnerships before, a new change in its college-sports products is beginning to formulate. According to a viable source’s statement, Nike has partnered with the sports platform Fanatics to make new collegiate sports apparel.
Though the deal between Nike and Fanatics is well on its way, manufacturing for the apparel won’t start until 2024. Regardless, both companies are more than emphatic about the collaboration and the potential to tap into the college-sports apparel market. Doug Mack, CEO of Fanatics, recently disclosed his enthusiasm about the deal, stating that he’s excited to “maximize the value” of the college apparel merchandise.
Nike has been working with colleges for quite some time. There are direct Nike sponsorships for many athletic schools, with teams from football to baseball outfitted with the company’s signature sportswear. This deal will accelerate the sportswear company’s investment in college sports apparel, including new Nike NCAA fanwear and other undisclosed sideline products. As well as partnering with Fanatics, Nike has also reached a licensing agreement with Branded Custom Sportswear, another athletic clothing company.
Though Nike is extending its investment in college sports, it is the leading athletic wear brand for college teams. The brand has some of the most expensive contracts with school teams, which usually cost millions. In the most recent NCAA tournament, Nike and its subsidiary Jordan Brand outfitted almost 50 teams that were competing. This was the highest number the brand has ever sponsored in one single event. Nike is customarily connected to basketball, but the sportswear company also provides huge contracts for college football. Currently, Nike provides sportswear for more than half of Division I football teams.
Now that Nike has formed a licensing agreement with Fanatics, the latter company will be manufacturing most of its college sports apparel. The apparel includes replica jerseys, sideline apparel, headwear, women’s fan gear, and general fan apparel. Though not officially confirmed, a handful of colleges, including Penn State, Ohio State, and Clemson University, will be the first to receive the Fanatics clothing. The partnership is also looking to expand women’s gear and women’s college apparel, too, which is a relatively untapped market compared to men’s sportswear.
Fanatics are no stranger to collaborating with sports teams. Before its partnership with Nike on college sportswear, the company had contracts with the NFL, NHL, and MLB. Nike has also had agreements with Major League Baseball and the National Football League, but neither company hadn’t collaborated. Though the sports companies had been overlapping for quite a while, the recent licensing deal is the first time Nike and Fanatics will manufacture products collectively.
Though Fanatics may be a lesser-known brand name than Nike, it has been rising the ranks in sports merchandising over the past several years. Since 2020, Fanatics has had a couple of hefty acquisitions. Both WinCraft, a sports merchandise manufacturer, and Topps, a trading card company, were acquired by Fanatics in the same year. Topps was a lofty acquisition, too, costing Fanatics over $500 million. The mergers won’t spot here, though. According to CNBC, Fanatics is set to acquire the sports betting company Tipico, though an official deal hasn’t been confirmed yet.
