Nike's New NFL Deal Bulks Up Its Sports Cred on the Gridiron

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NFL Nike UniformsThe NFL showed off its shiny new uniforms from Nike (NKE) Tuesday and there's buzz building before they even reach stores.

Unlike some of its college uniforms, Nike didn't step too far outside the box with the new NFL duds, sticking largely to the look Reebok developed for the 32 teams. Besides a swoosh on the gear, you may not notice the difference between old and new.

But the biggest name in sporting goods is finally in a long-term deal with the biggest name in football, and it seems like a match made in heaven. This may not seem like a big deal for a company Nike's size, but the NFL is big business, and even a behemoth like Nike will feel the impact.

The company is reportedly paying the NFL $1.1 billion over five years for the right to sell its jerseys, and the payoff should be strong. Analysts have predicted that Nike will add $500 million in annual revenue from the deal -- not insignificant even for a company with revenues of $22.7 billion a year.

View our gallery of the NFL Nike uniforms here.

The NFL Keeps Nike Cool

The deal is also a chance for Nike to regain some of the swagger it has lost to rival Under Armour (UA) in the business of football.

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The company has made inroads in the sporting goods business on the back of football gear. Its "We must protect this house" ad campaign was a huge success, and with Reebok making NFL gear at the time, Nike was left as something of an outsider on the gridiron.

The NFL deal puts Nike front and center and should help sales of everything from gloves to Pro Combat gear to shoes.
Nike will also be able to leverage its retail stores to push NFL gear. With more locations popping up around the country, the company will be able to focus its to local sports fans and offer a new range of clothing.

Update Your Tebow-mania Gear now

The new jerseys have already caused something of an uproar over the game's most popular backup quarterback, Tim Tebow.

Nike has already sued Reebok after the company tried to quickly capitalize on Tebow's move to the New York Jets. Nike calls the move a "once in a lifetime commercial opportunity" and it wants Tebow gear all to itself.

So if you were able to snag any Tebow-Reebok gear, you may have a collector's item on your hands. If not, the official Tebow Jets items are sure to hit a store near you, swoosh and all.

Nike's New NFL Deal Bulks Up Its Sports Cred on the Gridiron

NEW YORK, NY - APRIL 03: Mark Parker Nike,Inc. CEO speaks as Nike debut the new NFL uniforms on April 3, 2012 in New York City.  (Photo by Jason Kempin/Getty Images for Nike)

In this undated photo provided by the Seattle Seahawks, the NFL team's new uniform design is shown. The NFL unveiled new uniforms designed by Nike for all 32 teams Tuesday, April 3, 2012, at a New York fashion show. (AP Photo/Seattle Seahawks, Rod Mar)

NEW YORK, NY - APRIL 03:  Nike debuts new NFL uniforms on April 3, 2012 in New York City. NFL players; AFC: Baltimore Ravens, Ray Rice / Cincinnati Bengals, Andy Dalton / Cleveland Browns, Joe Haden / Pittsburgh Steelers, Ben Roethlisberger / Houston Texans, Andre Johnson / Indianapolis Colts, Robert Mathis / Jacksonville Jaguars, Rashean Mathis / Tennessee Titans, Nate Washington / Buffalo Bills, George Wilson / Miami Dolphins, Karlos Dansby / New England Patriots, Wes Welker / New York Jets, Shonn Greene / Denver Broncos, Champ Bailey / Kansas City Chiefs, Dwayne Bowe / Oakland Raiders, Darren McFadden / San Diego Chargers, Ryan Matthews.
NFC: Chicago Bears, Brian Urlacher / Detroit Lions, Ndamukong Suh / Green Bay Packers, Jermichael Finley / Minnesota Vikings, Percy Harvin / Atlanta Falcons, Justin Blalock / Caroline Panthers, Deangelo Williams / New Orleans Saints, Pierre Thomas / Tampa Bay Buccaneers, LaGarrette Blount / Dallas Cowboys, Jason Witten / New York Giants, Victor Cruz / Philadelphia Eagles, Michael Vick / Washington Redskins, Brian Orakpo / Arizona Cardinals, Larry Fitzgerald / San Francisco 49ers, Alex Smith / Seattle Seahawks, Kam Chancellor / St. Louis Rams, Cortland Finnegan  (Photo by Jason Kempin/Getty Images for Nike)

NEW YORK, NY - APRIL 03:  Nike debuts new NFL uniforms on April 3, 2012 in New York City. NFL players; AFC: Baltimore Ravens, Ray Rice / Cincinnati Bengals, Andy Dalton / Cleveland Browns, Joe Haden / Pittsburgh Steelers, Ben Roethlisberger / Houston Texans, Andre Johnson / Indianapolis Colts, Robert Mathis / Jacksonville Jaguars, Rashean Mathis / Tennessee Titans, Nate Washington / Buffalo Bills, George Wilson / Miami Dolphins, Karlos Dansby / New England Patriots, Wes Welker / New York Jets, Shonn Greene / Denver Broncos, Champ Bailey / Kansas City Chiefs, Dwayne Bowe / Oakland Raiders, Darren McFadden / San Diego Chargers, Ryan Matthews.
NFC: Chicago Bears, Brian Urlacher / Detroit Lions, Ndamukong Suh / Green Bay Packers, Jermichael Finley / Minnesota Vikings, Percy Harvin / Atlanta Falcons, Justin Blalock / Caroline Panthers, Deangelo Williams / New Orleans Saints, Pierre Thomas / Tampa Bay Buccaneers, LaGarrette Blount / Dallas Cowboys, Jason Witten / New York Giants, Victor Cruz / Philadelphia Eagles, Michael Vick / Washington Redskins, Brian Orakpo / Arizona Cardinals, Larry Fitzgerald / San Francisco 49ers, Alex Smith / Seattle Seahawks, Kam Chancellor / St. Louis Rams, Cortland Finnegan  (Photo by Jason Kempin/Getty Images for Nike)

NEW YORK, NY - APRIL 03:  Nike debuts new NFL uniforms on April 3, 2012 in New York City.  (Photo by Jason Kempin/Getty Images for Nike)

Seattle Seahawks' Kam Chancellor shows off the new design for gloves during a presentation in New York, Tuesday, April 3, 2012.  The NFL and Nike showed off the new look in grand style with a gridiron-styled fashion show at a Brooklyn film studio. (AP Photo/Seth Wenig)

NEW YORK, NY - APRIL 03:  The new Tennessee Titans, Chicago Bears and Jacksonville Jaguars jerseys are displayed during the unveiling by Nike as they begin their partnership with the NFL at Steiner Studios on April 3, 2012 in New York City.  (Photo by Mike Lawrie/Getty Images)

NEW YORK, NY - APRIL 03:  Victor Cruz of the New York Giants is interviewed while wearing the new NFL uniform introduced by Nike on April 3, 2012 in New York City.  (Photo by Jason Kempin/Getty Images for Nike)

NEW YORK, NY - APRIL 03:  Brian Urlacher of the Chicago Bears is interviewed while wearing the new NFL uniform introduced by Nike on April 3, 2012 in New York City.  (Photo by Larry Busacca/Getty Images for Nike)

NEW YORK, NY - APRIL 03:  The new team apparel for the New York Giants is displayed as the NFL uniforms are introduced by Nike on April 3, 2012 in New York City.  (Photo by Jason Kempin/Getty Images for Nike)

NEW YORK, NY - APRIL 03:  Matching team gloves are on display as Nike debuts new NFL uniforms on April 3, 2012 in New York City.  (Photo by Jason Kempin/Getty Images for Nike)

NEW YORK, NY - APRIL 03:  Members of the media look at a display of the new NFL uniforms introduced by Nikeon April 3, 2012 in New York City.  (Photo by Jason Kempin/Getty Images for Nike)

NEW YORK, NY - APRIL 03:  The new New Orleans Saints gloves are displayed during the unveiling by Nike as they begin their partnership with the NFL at Steiner Studios on April 3, 2012 in New York City.  (Photo by Mike Lawrie/Getty Images)

NEW YORK, NY - APRIL 03:  Nike debuts new NFL uniforms on April 3, 2012 in New York City.  (Photo by Jason Kempin/Getty Images for Nike)

NEW YORK, NY - APRIL 03: The new Green Bay Packers jersey is displayed during the unveiling by Nike as they begin their partnership with the NFL at Steiner Studios on April 3, 2012 in New York City.  (Photo by Mike Lawrie/Getty Images)

Detroit Lions' Ndamukong Suh talks to a reporter during a presentation in New York, Tuesday, April 3, 2012. The NFL and Nike showed off the new gear in grand style with a gridiron-themed fashion show at a Brooklyn film studio.(AP Photo/Seth Wenig)

NEW YORK, NY - APRIL 03:  The new Cleveland Browns jersey is displayed during the unveiling by Nike as they begin their partnership with the NFL at Steiner Studios on April 3, 2012 in New York City.  (Photo by Mike Lawrie/Getty Images)

NEW YORK, NY - APRIL 03:  The new Tennessee Titans, Chicago Bears and Jacksonville Jaguars jerseys are displayed during the unveiling by Nike as they begin their partnership with the NFL at Steiner Studios on April 3, 2012 in New York City.  (Photo by Mike Lawrie/Getty Images)

In this undated photo provided by the Seattle Seahawks, the NFL team's new uniform design is shown. The NFL unveiled new uniforms designed by Nike for all 32 teams Tuesday, April 3, 2012, at a New York fashion show. (AP Photo/Seattle Seahawks, Rod Mar)

New Orleans Saints' Pierre Thomas talks to a reporter at a presentation in New York, Tuesday, April 3, 2012. The NFL  and Nike showed off the new gear in grand style with a gridiron-themed fashion show at a Brooklyn film studio. (AP Photo/Seth Wenig)

In this undated photo provided by the Seattle Seahawks, the NFL team's new helmet design is shown. The NFL unveiled new uniforms designed by Nike for all 32 teams Tuesday, April 3, 2012, at a New York fashion show. (AP Photo/Seattle Seahawks, Rod Mar)

New England Patriots' Wes Welker poses for pictures in his new uniform in New York, Tuesday, April 3, 2012. The NFL and Nike showed off the new gear in grand style with a gridiron-themed fashion show at a Brooklyn film studio. (AP Photo/Seth Wenig)

The new Seattle Seahawks uniform, foreground, Pittsburgh Steelers, rear right, and Cincinnati Bengals, rear left, are displayed on mannequins during a presentation in New York, Tuesday, April 3, 2012. The NFL and Nike showed off the new gear in grand style with a gridiron-themed fashion show at a Brooklyn film studio. (AP Photo/Seth Wenig)

NEW YORK, NY - APRIL 03: President of Nike Brand,  Charlie Denson speaks as Nike debuts the new NFL uniforms on April 3, 2012 in New York City.  (Photo by Larry Busacca/Getty Images for Nike)

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Motley Fool contributor Travis Hoium does not have a position in any company mentioned. The Motley Fool owns shares of Under Armour. Motley Fool newsletter services have recommended buying shares of Under Armour and Nike; and creating a diagonal call position in Nike.

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