Adidas decides to end contract with the American Basketball Association (NBA), after the contract expires in 2016-2017.
Berlin: The German sportswear and equipment manufacturing giant, Adidas, has decided not to renew the contract with the American Basketball Association (NBA) post its expiry in 2016-2017.
Adidas has been into a deal contract with NBA since 2006 after taking over the contract from Reebok by paying three billion euros.
The decision not to renew the contract came when Adidas saw its share of the US market dip and they falling behind Nike and Under Armour.
Adidas will indulge in a bit of strategic repositioning. "We are reshaping our business and have evolved our strategy to look at new, cutting-edge ways to drive our brand and support our business over the long term,” Adidas said in a statement.
"We will invest more in telling stories that matter to our consumer, building category-disrupting innovative products, reinvigorating youth basketball with our new Next Generation programs and doubling our roster of professional athletes to authenticate our brand on-court."
For instance, it has hinted at wanting to individually sponsor 500 new athletes in sports such as basketball, football and baseball.