Manning Leaving Colts Boosts Nike on NFL Jersey Takeover
Peyton Manning’s change of address is good news for Nike Inc. (NKE), which replaces Reebok International Ltd. next month as the maker of National Football League-branded apparel and uniforms.
Manning, whose No. 18 jersey has been among the NFL’s top 10 sellers since 2004, was released today by the Indianapolis Colts, ending a record-setting era for a quarterback that resulted in a Super Bowl championship, four Most Valuable Player awards and at least three neck surgeries.
Peyton Manning #18 of the Indianapolis Colts in the first quarter against the New York Jets in Indianapolis. Photographer: Andy Lyons/Getty Images
Peyton Manning #18 of the Indianapolis Colts after a touchdown against the Oakland Raiders in California. Photographer: Jed Jacobsohn/Getty Images
Having a player of Manning’s ability and popularity changing uniforms is a boon for Nike, which won’t only sell a lot of jerseys but utilize the offseason news to remind consumers of its relationship with the most popular sports league in the U.S, according to Matt Arnold, an analyst at Edward Jones & Co. in Des Peres, Missouri.
“It can’t hurt that the league is getting attention in the offseason in light of Manning’s move,” said Arnold, who recommends buying the shares, which he doesn’t own. “It’s a very, very popular league and he’s a very, very popular player.”
Financial terms of the league’s five-year apparel contract with Beaverton, Oregon-based Nike, the largest sporting-goods maker, weren’t disclosed when it was announced in 2010.Advertising Age, citing executives close to the NFL, said the agreement is worth about $35 million a year. Nike’s revenue through November was $22.7 billion.
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