Nike’s Mumbai Indians deal: A statement of intent in the growing Indian sports market

Mumbai Indians have entered into a multi-year kit deal with Nike. The partnership begins in 2027. 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 in 2027. MI staff are set to sport the new kit this month, while the women’s and men’s teams are set to showcase it ahead of their seasons. This is Nike’s first IPL kit offering since its partnership with the now-defunct Deccan Chargers in 2008 – 18 years ago.What makes this partnership unique among current kit manufacturing deals with IPL franchises is that you will see the iconic Nike Swoosh on the Mumbai Indians jerseys. In the world of shirt sponsorship, where IPL franchises like MI, Royal Challengers Bengaluru and Chennai Super Kings command a reported Rs 40-60 crore per season for a top jersey, this is a premium retail space.“The partnership represents 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,” the company said in a press release.Prior to 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 fans. They will work with the global Nike team to bring some interesting and exciting fan merchandise and co-create great collaborations to complement the match wear,” said an industry insider.“With Nike, the fabrics will be better, the performance will be better. It will also help the players, as you see how global football teams always emphasize their match kits, help with performance. In the next few years, you will see exciting things that this partnership will bring to MI fans,” they continued.

Mumbai Indians head coach Kieron Pollard donned the new jersey with the Nike logo. (Image: X)

Nike has a long-standing relationship with Indian cricket. The Oregon-based company, which entered India in 2004, was the kit sponsor of the Indian men’s cricket team from 2006 to 2020 before being replaced by MPL Sports, Killer Jeans and then Adidas.In December 2005, Nike spent Rs 195 million to outbid Adidas and Rebook for the national team jersey. In 2011, after the Men in Blue won the ODI World Cup, the deal increased to Rs 270 crore for the next five years. In 2016, Nike spent around 370 million rupees for four and a half years and paid 87.34 million rupees per match.Since 2010, the value of the IPL has increased from $4.13 billion to $9.6 billion, growing 2.13 times according to a study by Brand Finance. So why did Nike stay away from the biggest sports league in the country?“These guys were brought into the IPL ecosystem too early. It was a time when the market was just maturing as the merchandise etc. is quite new in India. Indians were not used to an entire club or franchise as a model,” explained Vinit Karnik, CEO of GroupM, a three-decade industry veteran.“Secondly, Nike was the main sponsor of Team India’s kit and then they let it go. They’ve obviously realized in the last few years that cricket is an important sport to have on the roster.”“Thirdly, since the early or underdeveloped days of Indian cricket, the amount of money that the average Indian fan spends on sporting goods is quite significant. So it might change the whole dynamic of the business,” he added.

They (Nike) have obviously realized in recent years that cricket is an important sport to have on the roster

Vinit Karnik of GroupM

Indranil Das Blah, former CEO of Mumbai City FC and now founder of AMP Sports & Entertainment, believes that the last-minute jersey changes will not help these international makers.“The last-minute nature of the IPL that tends to happen (plays a role). So local producers can fill that gap, but international producers need a lot more planning and that’s why most of them disappear from the scene for the longest time,” Blah said.He believes it’s also about Nike showing its intent. “Globally, Nike is struggling. But this is a statement of intent that says India is a critical market for us. And if it’s critical, you have to be in cricket. Now look at the major assets. Adidas, your biggest competitor, has an Indian cricket team. That leaves CSK and MI. So if you want to be in India, you can add and want to be more visible,” he added.

Nike was the kit manufacturer of Team India from 2006 to 2020. (BCCI)

While Nike has stayed away from the IPL ecosystem, its biggest competitors have remained attached to the league. Seven were 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 may have played a role in Nike being left out is price. The men’s cricket team jersey circa 2010 came in two variants: a genuine replica worth Rs 3,000 and a cheaper Rs 2,000 alternative that had inferior fabric while retaining the visual appeal. By the time Nike left, a replica cost nearly Rs 5,000. This was in stark contrast to the Rs 200-300 that fans were willing to spend outside the stadiums.

Loyal fans of European football teams 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 Rs 5000 jersey?

Indranil Das Blah

“Loyal fans of European football teams will buy an official kit 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 Rs 5,000 kit? In football, they have home, away and official kits. Very few people can produce it in India for these international manufacturers, right. It has to have a certain quality, so your market goes down immediately,” Blah stated.For it to make business sense now, the prices have to be reasonable, Karnik believes.“India is not a premium market. You’re going to have to create a product that’s more affordable for people. And that’s one of the learnings they’ll get from 2008. So I think when they announce the MI range, they’ll have more tiers. The highest price of the product will be Rs 5,000, but they’ll have a more affordable range of Rs 999 or Rs 1,499.”

Nike will become the official kit partner of the Indian men’s and women’s teams in Mumbai from the 2027 season as part of a multi-year partnership.

Cricket is not the only sport where Nike has an association in India. In February 2006, Nike signed a seven-year deal to become the official kit sponsor of the Indian football team. The conditions allowed them to carry out marketing and promotional activities at the local level.The contract with the All India Football Federation (AIFF) was extended in 2013 before SIX5SIX joined ahead of the 2019 AFC Asian Cup, ending the 12-year association.Back to cricket and IPL specifically, will this deal add value to the IPL brand? Karnik believes it’s just one team and one entry point at this point. He thinks it would be big if Nike, Adidas or Puma were “in all 10 teams like in the Premier League, NBA or NFL. If that happens, then that’s an important point. But with one team, I don’t know. Would it translate into awards for IPL or MI? Or both? I don’t think so,” he finished.