Why Nike stayed away from the IPL for 18 years, and what brings it back

NEW DELHI: On October 21, Nike and Mumbai Indians (MI) entered into a multi-year partnership for the men's and women's teams, starting from 2027. MI staff are slated to sport the new gear this month, while women's and men's teams are expected to showcase it ahead of their respective seasons. This is Nike's first IPL kit deal since working with the now-defunct Deccan Chargers in 2008 - 18 years ago.What makes this partnership unique to the current kit manufacturing deals with IPL franchises is that it will see the iconic Nike Swoosh on the Mumbai Indians jerseys.

In the world of shirt sponsorships, where IPL franchises such as MI, Royal Challengers Bengaluru and Chennai Super Kings demand a reported Rs 40-60 crore per season for the front jersey, it is premium retail space."The partnership marks a significant step in Nike’s continued investment in cricket and reflects the brand’s long-term commitment to athletes, fans and the future of sport in India," said the company in a press note.Before Nike, MI had Performax Activewear (2019-2024) and Skechers (2024-2026) as kit manufacturers."This is a really good opportunity for MI to continue to build on their current offering and deliver world-class merchandise to the fans.

They will work with Nike’s global team, bring some interesting and exciting merchandise for fans and co-create cool collaborations that will supplement the match wear," said an industry insider."With Nike, the fabrics are going to get better, performance-wise it will get better. It will help the players also, like if you see how global football teams always put emphasis on their match jerseys, to help with performance.

In the next few years, you are going to see interesting things that this partnership will bring to the MI fans," they continued.Nike has had a long-standing relationship with Indian cricket. The Oregon-headquartered company, which entered India in 2004, was the Indian men's cricket team's kit sponsor from 2006 until 2020, before being replaced by MPL Sports, Killer Jeans and then Adidas.In December 2005, Nike spent Rs 195 crore to outbid Adidas and Rebook for the national team's jersey.

In 2011, after Men in Blue won the ODI World Cup, that deal value ballooned to Rs 270 crore for another five years. In 2016, Nike spent approximately Rs 370 crore on a four-and-a-half-year deal, paying Rs 87.34 lakh per match.Since 2010, value of the IPL has gone from $4.13 billion to $9.6 billion, growing 2.13-times, as per a study by Brand Finance. Why, then, did Nike stay away from the biggest sports league in the country?"These guys were brought into the IPL ecosystem way too early.

That was the time when market was just maturing because merchandise etc. are pretty new to India. Indians were not used to the whole club or franchise kind of a model," explained Vinit Karnik, GroupM's Managing Director, an industry veteran of three decades."Second, Nike were Team India's principle kit sponsor and then they let that go off their hands. They have obviously realised in the last few years that cricket is a sport which is important to have on the roster.""Third, ever since those days of pre-mature or not mature enough days of Indian cricket, the amount of money an average Indian fan spends on sports merchandise is quite significant.

So maybe that changes the whole business dynamics," he added.They (Nike) have obviously realised in the last few years that cricket is a sport which is important to have on the rosterIndranil Das Blah, former Mumbai City FC CEO and now founder of AMP Sports & Entertainment, believes the last-minute modifications to the jersey doesn't help these international manufacturers."The last moment nature of the IPL that tends to happen (plays a role).

So, local manufacturers can fill in that void, but international manufacturers need a lot more planning, which is why most of them disappear for the longest time from the scene," said Blah.He reckons this is also about Nike showcasing it's intent. "Globally, Nike has been struggling. But this is a statement of intent, saying India is a critical market for us. And if it is critical, you have to be in cricket.

Now look at the top assets. Adidas, your biggest competitor, has the Indian cricket team. That leaves the likes of CSK and MI. So if you want to be in India and want to be visible, you can't have a better platform than MI," he added.While Nike stayed away from the IPL ecosystem, its biggest competitors remained attached to the league. Seven has been associated with Chennai Super Kings; Puma with Royal Challengers Bengaluru and Delhi Capitals; SIX5SIX with Lucknow Super Giants and Kolkata Knight Riders.Another factor that might have played a role in Nike staying away is the price.

The men's cricket team jersey around the 2010s had two variants: a true replica worth Rs 3,000 and a cheaper alternative at Rs 2,000, which had inferior fabric while maintaining the visual appeal. By the time Nike exited, the replica cost nearly Rs 5,000. This was in sharp contrast to the Rs 200-300 that fans were willing to spend outside the stadiums.European football teams' loyal fans will buy the official jersey even if it means spending Rs 5,000-6,000.

In India, the market is very different. Look at the IPL teams, how many fans will actually be able to afford a jersey worth Rs 5,000?"European football teams' loyal fans will buy the official jersey even if it means spending Rs 5,000-6,000. In India, the market is very different. Look at the IPL teams, how many fans will actually be able to afford a jersey worth Rs 5,000? In football, they have a home, away and official jersey.

In India, very few people can afford that. And for these international manufacturers, it's not like they can produce cheap jerseys, right? There has to be a certain quality to that. So, your market is instantly decreased," stated Blah.For it to make business sense now, the pricing has to be reasonable, believes Karnik."India is not a premium market. You will ha…