Since 2006, the NBA's uniforms have been adorned with adidas' signature three-stripe logo. Soon, the Association will be looking for a new brand to produce its apparel.
adidas has decided not to bid on an apparel contract extension with the NBA past the 2016-17 season, according to the Portland Business Journal.
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A source close to the situation told Sporting News that the NBA informed adidas last week that it would be opening up the the bid due to adidas' fall to third in U.S. sportswear sales and uncertainty surrounding the changes in the company's leadership.
Instead of pursuing a new NBA apparel deal, adidas will look to focus on endorsing more NBA players and amateur teams as well as developing new products.
"We haven't been able to elevate our brand for the basketball consumer that we're targeting," said adidas global basketball general manager Chris Grancio, per the Portland Business Journal's Matthew Kish. "We ultimately decided that we would change our investment strategy and invest more in players on the court."
It's no secret that adidas and the rest of the basketball apparel world are chasing Nike and its Jordan brand, which accounts for about 96 percent of the basketball shoe business, per Kish's report. Under Armour has also pushed its way into the competition, and will likely bid for the NBA apparel deal along with Nike.
While adidas is bowing out of the NBA apparel race, it isn't giving up on basketball.
"We're going to invest more money in basketball over the next five years than we ever have," Grancio told the Portland Business Journal.
adidas has provided the NBA's apparel since it purchased Reebok in 2006. Reebok had been the official apparel provider since 2001.