Nike Beats Out Under Armour For Chelsea Football Apparel Deal Worth $1.1 Billion

Nike Inc (NYSE: NKE) has announced a multiyear deal with legendary English football ("soccer") team Chelsea Football Club worth a reported $1.1 billion.

Earlier in the year, Chelsea had ended its long-time partnership with adidas AG (ADR) (OTC: ADDYY). Nike is set to be the official apparel supplier of Chelsea starting in the 2017–2018 season. The deal is said to be worth $73 million annually over the next 15 years.

Related Link: Under Armour's Growth -- The Source Of Buy-Side Debate

Adidas' deal with Chelsea was supposed to end in 2023, but in May the deal was severed early as the club looked for more money. Previously, its deal with adidas was the biggest in the Premier league. Adidas still holds the most expensive apparel deal in the Premier league with Manchester United, worth $128 million a season.

Nike beat out competitor Under Armour Inc (NYSE: UA) for the deal, as the company has been increasing the pressure on Nike when it comes to club apparel deals, especially internationally.

At last check, Nike was up 0.56 percent at $52.39 in Friday's morning session, while Under Armour was seen up 1.62 percent at $38.80 and ADRs of adidas were up 1.06 percent at $85.97.

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