Team deals put Adidas areas in some NBA arena stores

[spurschick]

Team deals put Adidas areas in some NBA arena stores
By JOHN LOMBARDO
Staff writer - Sports Business Journal

Adidas begins the first year of its 11-year, $400 million partnership as the official uniform and apparel supplier of the NBA with 15 team sponsorship deals, some of which will include a new “store-within-a-store” concept that will sell both NBA-licensed merchandise and other company apparel.

This marks a more extensive arrangement by Adidas compared to the league’s old deal with Reebok. Of the 15 NBA team deals, some teams will have the Adidas-NBA stores within their arenas that will sell both NBA merchandise and other Adidas products including shoes and soft goods. Other team deals will include an Adidas retailing presence, with the size depending on space availability within the arenas. League officials said that under Reebok’s deal, there were no team sponsorships, and while it sold hats and apparel in-arena, Reebok did not have the shop-within-the retail-shop concept that Adidas is planning.

Adidas negotiated its NBA deal in April after the company finalized its purchase of Reebok last year.

“Adidas has fully embraced our new partnership and we are working closely together on extensive initiatives that will build our brands, work closely with NBA teams and offer unique products and promotions to our fans,” said Sal LaRocca, NBA executive vice president of global merchandising.

It’s also a more profitable arrangement, according to team marketers who now count Adidas as a sponsor, resulting in a new revenue stream.

“We are discussing a branded area in our building as well as other opportunities,” said Bruce Guthrie, vice president of marketing for the San Antonio Spurs. “We don’t yet have a square footage for their store-within-our-team-store, but it will add significant revenue that we didn’t have and they will be a major part of our shop. There is also significant revenue from the team sponsorship. Their approach is to get more involved with the teams.”

To support the merchandising effort, Adidas will launch a global advertising campaign pegged around the team concept, called “It Takes 5IVE,” which will include a 30-second spot featuring Tracy McGrady, Kevin Garnett, Tim Duncan, Chauncey Billups and Gilbert Arenas. The six-month campaign, created by TBWA/Chiat/Day in San Francisco, also will feature individual spots with each player to air sometime after the brand spot begins on Oct. 16. Each player will use the commercials to launch their own signature shoes.

In December, Adidas will begin selling custom-designed, co-branded shoes for each of the league’s 30 teams compared to a league-branded shoe sold by Reebok.

“Each store will vary team by team,” said Adidas spokesman Travis Gonzolez. “Some may carry all Adidas-licensed apparel, but some will have more space and add other pieces, from shoes to other Adidas products.”

[LakerHater]

That is freakin bad ass!!!!!