Nike To Pump US$144m Into Chinese eSports Scene; 26x More Than Average Team Deal

While exact details of the deal are yet to be confirmed, however, reports suggest that the agreement is a five-year partnership with the Chinese League of Legends team would be worth up to US$144m.

Similar to its apparel partnerships with traditional sports leagues such as the National Football League (NFL) and National Basketball Association (NBA), the deal would see Nike provide clothing, accessories and shoes for all LPL team players and representatives.

The LPL is a franchised league, meaning organisations buy into permanent slots and share in the league’s revenue. If confirmed, the deal with Nike would see the brand’s logo appear on the uniforms of all 16 teams competing in the upcoming LPL season.

If the numbers are correct, Nike will be paying approximately US$28.8m per year (assuming no price inflation), which would make the deal 26x larger* than its average Celebrity & Team sponsorship, or 7x larger when Nike has been the lead (“Title” or “Presenting”) partner. This must be a reflection that the LPL platform’s audience is significantly larger than the average platform: an oft-quoted fact relating to eSports in general.

The latest Nike play comes shortly after it tapped Chinese League of Legends player Jian ‘Uzi’ Zihao to star alongside LeBron James to promote the basketball star’s ‘Dribble &’ marketing campaign in support of his upcoming Shut Up and Dribble series on Showtime.

Zihao’s team, Royal Never Give Up, have also signed a number of non-endemic commercial deals in recent times, partnering with blue-chip brands such as German automobile giant Mercedes and quick service restaurant KFC.

* – 2013-2017, last 5 complete years