According to a media report, the American sporting goods manufacturer Nike is about to take over the equipment contract with MLB, which was actually signed by Under Armour in 2016. The reason is the difficult economic situation of UA.
Sports Business Daily reports that Nike will be the official jersey manufacturer for Major League Baseball from the 2020 season.
The original contract between Under Armour and MLB was signed in 2016 and mainly includes the uniforms of the teams. Starting with the 2020 season, Fanatics will become the official fan article distributor of the league.
SBD further reports that 80 percent of the new contract between Nike and MLB has been completed and an agreement is expected to be announced in the margins of the All-Star Game in July.
As an important part of the contract, it was negotiated that the manufacturer’s logo would no longer appear on the sleeves of the jerseys but on the chest. This would probably also be the case with the Nike deal and the “Swoosh” would be prominent.
If this were to happen, Under Armour would save approximately $50 million. “You were a different company than you made this deal,” an unnamed source is quoted. “It’s just no longer affordable for Under Armour.”
MLB’s current outfitter, Majestic Athletic, will continue to produce the jerseys for the entire league in 2019. For Nike, this would be the third major deal with US sports leagues, as both the NFL and the NBA are supplied exclusively by Nike with jerseys and other playwear.
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This article was published without previous view by the Major League Baseball.