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New Era Part of Major Deal with NFL

 By George Pyle  

The deal was approved by NFL team owners at a meeting Tuesday in Chicago, but a New Era spokeswoman said the company would not be permitted to comment on the award, or on what it might mean to the company, until after the official league announcement, which they expect today.

After the 2011 NFL season, Reebok will no longer be the exclusive licensee for NFL-branded apparel, as it has been for the last 10 years, several news sources reported. Nike Inc. will become the exclusive maker of on-field uniforms and other apparel, while New Era will make all the caps to be worn on the sidelines by coaches, assistants, off-the-field quarterbacks -- and fans who want to buy the matching look.

New Era has long been the official supplier of on-field caps for Major League Baseball and Minor League Baseball, and is also licensed to sell caps with the logos of National Hockey League and National Basketball Association teams, as well as those of many major colleges.

Terms of the deal were not announced. But Reuters quoted sports analysts as saying that the agreement with all the clothing and cap vendors could be worth as much as $1 billion to the league. Other manufacturers were awarded smaller contracts, in a move that observers said was likely to greatly increase the league's revenue over any pact that awarded all the apparel rights to a single vendor.

"The league is looking to grab as much money as it can from the licensees by splitting it," Matt Powell, an analyst for SportsOneSource, told Reuters. "They got more money than they would from one guy."

Total revenue for all NFL-branded apparel was estimated as about $1.9 billion in 2009.

Other licensees of NFL apparel will be Under Armour, which will continue to sponsor the NFL scouting combine in Indianapolis, and '47 brand, which will make other kinds of head wear for fans. Gill will make outer wear and lifestyle apparel, VF Corp will have the license to make T-shirts and fleece, and Outerstuff will make youth-sized clothing.

Reebok, which is owned by Adidas AG, said in a statement it has enjoyed its decade-long partnership with the NFL.

Nike had been a uniform supplier in the mid-1990s, the NFL said.

Shares of Nike hit a new 52-week high of $83.40 in trading Monday but closed down 9 cents at $81.89. Shares of VF Corp. fell 37 cents, to $84.87, while shares of Under Armour rose 48 cents, to $46.40.

New Era is privately held.

"We believe our agreement with the NFL enhances the Nike brand and provides a significant opportunity to drive growth across the business -- both in our performance products and sportswear," said Charlie Denson, president of Nike Brand.

gpyle@buffnews.com