Steep price paid by Nike likely to pay off
April, 3, 2012
4/03/12
3:34
PM ET
By
Kristi Dosh | ESPN.com

Nike may be able to earn back the $1.1 billion it reportedly spent on its NFL apparel deal rather quickly if sales projections pan out.
Nike on Tuesday unveiled its new NFL jerseys, which will be available for presale on April 15 and in stores on April 26. Some Nike apparel is already available on the league’s nflshop.com.
“Fanatics expects to see year-over-year sales of NFL jerseys to increase by 2-times-to-3-times at the time of the new Nike jersey launch,” said Fanatics public relations manager Anne Lacey Whitaker via email. Fanatics is a licensed apparel seller for several pro leagues and the NCAA.
Fans will see an increase in the cost of some items. The cost of a Nike base replica jersey will be $100, up from the $85 charged by the former apparel-rights holder, Reebok.
Paul Swangard, managing director of the Warsaw Sports Management Center at University of Oregon, said he expects an initial sales bump followed by more gradual growth: “Hard-core fans will want it right away, while the masses will re-gear or gear up [in the third quarter]."
Those expectations should please Nike.
While Reebok paid just $250 million for its 10-year deal, Nike is paying nearly that much per year with its five-year, $1.1 billion contract.
Citigroup analyst Kate McShane estimated Reebok’s NFL contract accounted for $350 million to $565 million per year in apparel sales. Losing the deal to Nike is a significant loss for the company.
Nike may be able to capitalize on the apparel-maker switchover, which has left some items low in stock in recent weeks as Reebok’s contract drew to a close.
A highly publicized dispute between Nike and Reebok over Tim Tebow New York Jets jerseys also won’t hurt Nike business. During March, Reebok maintained rights to the league’s trademarks, while Nike’s deal with the players’ association had already begun for the use of players' names.
While the league produced Denver Broncos jerseys emblazoned with Peyton Manning’s name and number using its in-house label to capitalize on the biggest free agent signing of the off-season, new Tebow jerseys were initially available on nflshop.com only from Reebok. Last week, a judge issued an injunction, forcing Reebok to stop selling the jerseys and recall stock sent to retailers.
Currently, nflshop.com has no jerseys available for either Manning or Tebow with their new teams.

- SportsBizMiss Kristi Dosh
If this year's Super Bowl goes well in NJ, Robert Kraft would love to see the Super Bowl in Foxborough: http://t.co/IE3sBznBk3.
3 minutes ago
- SportsBizMiss Kristi Dosh

- SportsBizMiss Kristi Dosh
RT @angelajames: Omg. Hysterical. @SmartBitches Baseball Prospectus offers: baseball stars of the 80s when they were in Playgirl. http://t…
49 minutes ago
- SportsBizMiss Kristi Dosh

- SportsBizMiss Kristi Dosh
RT @ChaddScott: Busch Stadium set up for footie @chelseafc v @mcfc Thursday in St. Louis #EPL http://t.co/2W6qIhv8Hs
about 9 hours ago
- SportsBizMiss Kristi Dosh

- SportsBizMiss Kristi Dosh
RT @TalkRadioOwen: Insight during tonight's #srchat at 7p PT, 9p CT, 10p ET - how to keep football topics on your show during off-season. @…
about 9 hours ago
- SportsBizMiss Kristi Dosh

- darrenrovell darren rovell
Love the look of these. Will they hit retail? RT @JJWatt Coming Soon. #MegaWatt http://t.co/y4NxF9ER56
about 9 hours ago
- darrenrovell darren rovell

- SportsBizMiss Kristi Dosh
RT @ChaddScott: Sports Radio Twitter Chat w/ me & @TalkRadioOwen begins at 10 ET. All current, former & future sports radio pros welcome #s…
about 9 hours ago
- SportsBizMiss Kristi Dosh

- SportsBizMiss Kristi Dosh
It's really not a joke RT @Holdenradio: Chuck Norris loves Tim Tebow. ***This is NOT a joke. > http://t.co/rY0DP5AFLH
about 9 hours ago
- SportsBizMiss Kristi Dosh

- SportsBizMiss Kristi Dosh
It's really not a joke RT @Holdenradio: Chuck Norris loves Tim Tebow. ***This is NOT a joke. > http://t.co/rY0DP5AFLH
about 9 hours ago
- SportsBizMiss Kristi Dosh

- darrenrovell darren rovell
Yes RT @TomRotunno Charles Ramsey, who helped Cleveland kidnap victims gets burgers for life AT 12+ PLACES http://t.co/7BUeHIhVE1
about 9 hours ago
- darrenrovell darren rovell

- darrenrovell darren rovell
Here we go MT @paulsen_smw Grizzlies/Spurs Game 2 scored 4.6M viewers, the least-viewed Conf. Finals telecast on cable since '07
about 9 hours ago
- darrenrovell darren rovell

- darrenrovell darren rovell
Your Nightly Don Cherry Suit Update http://t.co/0442z49QEU (via @dahouldbreihim)
about 10 hours ago
- darrenrovell darren rovell

- darrenrovell darren rovell
Tickets for the NBA Draft in Brooklyn now on sale, tickets run from $20 to $40 depending on upper or lower bowl seats.
about 11 hours ago
- darrenrovell darren rovell

- darrenrovell darren rovell
The benefits of sponsorship: @DwyaneWade's Gatorade machine outside his house http://t.co/IpLF0AekpY
about 11 hours ago
- darrenrovell darren rovell

- darrenrovell darren rovell
Fun fact RT @adbrandt Ricky Williams fired me to sign with Master P and yes, I think Jay Z will have far more success than Master P did.
about 11 hours ago
- darrenrovell darren rovell

- darrenrovell darren rovell
Data RT @TonyBizjak Sac Kings sales staff says they sold more season tickets Tuesday than any day in Sac team history, other than day 1
about 12 hours ago
- darrenrovell darren rovell

- darrenrovell darren rovell
Geno Smith's contract will be solely negotiated by Roc Nation Sports. Eventual model is to be standalone company w/o CAA help
about 13 hours ago
- darrenrovell darren rovell

- darrenrovell darren rovell
1 more line on Heat tickets: Tickets released often are from opposing team, league and broadcasters not taking allotment.
about 15 hours ago
- darrenrovell darren rovell

- SportsBizMiss Kristi Dosh
Are you a student or young administrator attending #NACDA13? If so, check out this session I'm part of: http://t.co/kzRryu0k6b.
about 15 hours ago
- SportsBizMiss Kristi Dosh

- darrenrovell darren rovell
Today's Marlins Giveaway: Free tickets to Senior Citizens on select Thursdays! (H/T @danielgillman) http://t.co/vna6h0gst5
about 16 hours ago
- darrenrovell darren rovell

- darrenrovell darren rovell
On May 27 all of MLB will be wearing camo hats & jerseys. Net proceeds go to Welcome Back Vets. http://t.co/4EFq2yIGka
about 16 hours ago
- darrenrovell darren rovell

- darrenrovell darren rovell
Note: Tickets that the Heat are now selling were not for sale previously. They were released today.
about 16 hours ago
- darrenrovell darren rovell

- darrenrovell darren rovell
Seats that remain for Heat-Pacers tonight range from $118.55 to $376.10.
about 16 hours ago
- darrenrovell darren rovell

- darrenrovell darren rovell
Miami Heat owner @MickyArison tweets that seats are available for tonights game vs Pacers http://t.co/kX6NqBQHu7
about 16 hours ago
- darrenrovell darren rovell

- darrenrovell darren rovell
POLL RESULTS: 80% say Jay-Z will build a successful sports agency http://t.co/XsS18jYY5V
about 17 hours ago
- darrenrovell darren rovell

- darrenrovell darren rovell
ESPN shuttle on Bristol HQ campus http://t.co/6c3souxKI1
about 17 hours ago
- darrenrovell darren rovell

- SportsBizMiss Kristi Dosh
Thanks for listening! RT @tonyambeaver: @ChaddScott @sportsbizmiss Great show last night!!!
about 17 hours ago
- SportsBizMiss Kristi Dosh

- SportsBizMiss Kristi Dosh
MLB owners initially invested $77m in MLB Advanced Media. As of 2011 it was bringing in $620m in annual revenue: http://t.co/di5dn3duz3.
about 17 hours ago
- SportsBizMiss Kristi Dosh

- darrenrovell darren rovell
Video board at Charlotte Motor Speedway is about 30% larger than the one at Cowboys Stadium http://t.co/iz2tTGqJky
about 17 hours ago
- darrenrovell darren rovell

- darrenrovell darren rovell
MLB Advanced Media says its At Bat app has been downloaded 6 million times so far this season.
about 18 hours ago
- darrenrovell darren rovell

- darrenrovell darren rovell
Picture of new client Geno Smith at Roc Nation office in NYC http://t.co/upKe9PRNoA
about 18 hours ago
- darrenrovell darren rovell

- SportsBizMiss Kristi Dosh
MLBAM says MLB At Bat has passed 6 million downloads, which didn't happen until October 4th last year.
about 18 hours ago
- SportsBizMiss Kristi Dosh

- darrenrovell darren rovell
POLL: Do you think Jay-Z will build a successful sports agency? #YES #NO
about 18 hours ago
- darrenrovell darren rovell

- darrenrovell darren rovell
Jay-Z sports client roster: Victor Cruz, Robinson Cano, Geno Smith, Skylar Diggins
about 18 hours ago
- darrenrovell darren rovell

- darrenrovell darren rovell
So in weeks, Jay-Z has 1 of the best players on the Giants, 1 of the best players on the Yankees and possibly the future of the Jets.
about 18 hours ago
- darrenrovell darren rovell

- darrenrovell darren rovell
Confirmed Geno Smith will be repped by Jay-Z's Roc Nation Sports. Only contract at this time, not marketing.
about 18 hours ago
- darrenrovell darren rovell

- darrenrovell darren rovell
Not necessarily a fair fight as Urlacher played in the league when licensing started booming.
about 18 hours ago
- darrenrovell darren rovell

- darrenrovell darren rovell
I suspect Brian Urlacher sold more jerseys than any defensive player in NFL history. Troy Polamalu probably only threat.
about 18 hours ago
- darrenrovell darren rovell

- darrenrovell darren rovell
Charm City Racing, w/partner @michaelphelps, bought its 1st horse yesterday for $55K http://t.co/cPT1hDSvVe
about 18 hours ago
- darrenrovell darren rovell

- darrenrovell darren rovell
Lowest over/under win totals in the NFL on @BovadaLV: Jaguars (5), Raiders (5 1/2), Cardinals (5 1/2)
about 18 hours ago
- darrenrovell darren rovell

- darrenrovell darren rovell
In what might be a 1st, Yankees thru various sites, are discounting tickets to both Subway Series and Red Sox games.
about 18 hours ago
- darrenrovell darren rovell

- darrenrovell darren rovell
Not fair. Need sell thru %. Make much more of LeBrons RT ‏@kbadenhausen LeBron's @Nike shoes outsell Kobe's 6-1 in US.
about 18 hours ago
- darrenrovell darren rovell

- darrenrovell darren rovell
POLL: Voters evenly split on whether TaylorMade-adidas should terminate Sergio for his latest Tiger comments http://t.co/Dzg4SBMHiS
about 18 hours ago
- darrenrovell darren rovell

- darrenrovell darren rovell
POPTIP: Do you think Taylormade-adidas should drop Sergio for his latest Tiger comment? #YES #NO
about 18 hours ago
- darrenrovell darren rovell

- darrenrovell darren rovell
Keith Hernandez's Mex Burger at CitiField w/bacon, guac, cheese, chipotle mayo & jalapenos http://t.co/0pXdX4koho (via @ARAMARKsports)
about 18 hours ago
- darrenrovell darren rovell

- darrenrovell darren rovell
Although the NBA owns the Hornets name and logos, source tells me team doesn't have to pay the league for assets
about 19 hours ago
- darrenrovell darren rovell

- darrenrovell darren rovell
RazorGator unveils GatorLocator, a mobile app that allows users to buy tickets with no fees. Step to attempt to steal market share
about 19 hours ago
- darrenrovell darren rovell

- SportsBizMiss Kristi Dosh
RT @slmandel: Crazy stat: Thanks to a women's tennis title yesterday, Stanford has won an NCAA title in at least one sport for 37 straight …
about 20 hours ago
- SportsBizMiss Kristi Dosh

- darrenrovell darren rovell
Indy Star gives readers the Hibbert block poster in today's edition http://t.co/pEdikp9GZf
about 20 hours ago
- darrenrovell darren rovell

- SportsBizMiss Kristi Dosh
.@l_mashburn recently wrote about the trend of adding local flair to playing surfaces: http://t.co/zYUc4gn2ai.
about 20 hours ago
- SportsBizMiss Kristi Dosh

- SportsBizMiss Kristi Dosh
Gym floor at George Washington to feature DC landmarks: http://t.co/BCucWjRoOH.
about 20 hours ago
- SportsBizMiss Kristi Dosh



ESPN SPORTS BUSINESS ON TWITTER
You must be signed in to post a comment