Nike inks historic deal with NYC to make branded gear
New York City is planning to “Just do it,” teaming up with Nike for a deal to sell a little piece of the Big Apple.
Footwear giant Nike signed a two-year deal with the city that allows for licensing of state-specific iconography on merchandise.
Logos of NYPD and the FDNY are just a few confirmed NYC staples that will be placed on apparel in exchange for a cut of Nike sales, according to a report by The City.
A spokesperson said it was the first deal of its kind for a merchandising agreement with a city in North America.
The Franchise and Concession Review Committee gave approval for the deal on Aug. 14, and is set to boost the city’s tourism bureau, NYC & Company. Five percent of Nike’s annual revenue on NYC-branded clothing and goods will be given to the tourism board along with a guaranteed minimum of $20,000 for the contract.
Nike is prepared to give away an unspecified quantity of merchandise to NYC & Company for promotional purposes, according to the report.
Despite the offering, Nike faces criticism over past labor practices in the very city it’s entering. New York University students protested the Portland-based sneaker company in April over what they deemed to be poor treatment of Indonesian workers, and urged the institution to cut ties as chronicled in the Washington Square News.
Jane Meyer, a spokesperson for NYC’s Democratic Mayor Bill de Blasio, says Nike has been a “positive partner”– having donated a turf field and skate park to the Parks Department. The retailer also agreed to licensing terms that maintain the cost of the program and allows for inspection of its facilities, warehouses, suppliers and manufacturers.
If necessary, Meyer asserts that city administration has a protocol prepared to ensure Nike is meeting the ethical standards of the licensing contract.
“The city will initiate an investigation and hire a third party in-country inspection team. If the licensee is in breach of contract, the city can terminate the contract or seek other recourse.”
The deal is a first of its kind for Nike with any North American city.
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Information from The Associated Press contributed to this report.