NIKE, Inc. (NYSE: NKE) focuses in the design, development, marketing and selling of athletic footwear, apparel, equipment, accessories and services. The Company sells its products through retailer stores owned by them, their main website and through a mix of independent distributors and licensees throughout the world.

 Nike Inc. Signs LeBron James for a lifetime deal

The shares of Nike Inc. rose about 1 percent in Mondays after-hours after the company announced that they signed NBA player LeBron James for a lifetime contract. In a statement the company said, “We have agreed to a lifetime relationship with LeBron that provides significant value to our business, brand and shareholders. We have already built a strong LeBron business over the past 12 years, and we see the potential for this to continue to grow throughout his playing career and beyond.”

(Source: Google Images)

In 2003 James signed a contract with Nike for a record $90 million after graduating high school, this was before he even played a game in the NBA. Since that moment, he has won 2 NBA titles but in a disappointing 6 appearances.

He signed a two-year, $42 million contract with the Cleveland Cavaliers in the summer of 2014.

ESPN’s Darren Rovell reported that “A source close to the deal it easily surpasses the 10-year, $300 million deal Oklahoma City Thunder forward Kevin Durant signed with the world’s largest shoe and apparel brand last summer.”

Shares of Nike closed Monday at $131.63. The stock is up 37 percent year-to-date.

“It meant a lot to me even when I signed my first deal… and it means even more that they’ve given me this,” James told ESPN’s Dave McMenamin. “I don’t want to be nowhere else. I’m Nike and swoosh for the rest of my life.”

We are expecting that the largest contract they have ever made with a player will increase sales in the basketball section and at the same time help to boost the share price.