Brand Power: Nike Signs Lebron James to Lifetime Deal
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Nike has signed NBA star LeBron James to a lifetime deal, the company said Monday.
The sneaker giant did not disclose the terms of the agreement, but sources told CNBC it is the biggest in Nike's history. In a statement, Nike said its relationship with the Cleveland Cavaliers star "provides significant value to our business, brand and shareholders."
"We have already built a strong LeBron business over the past 12 years, and we see the potential for this to continue to grow throughout his playing career and beyond," Nike said.
Nike aims to build its brand around James beyond his playing career, and is adding more executives and boosting advertising for the unit, sources said. The company sold $340 million of James' shoe line in the 12 months through January 2015, according to SportsScanInfo.
James initially signed with the company out of high school in 2003 for a reported $90 million. The extension announced Monday marks the first time Nike has officially given a lifetime deal, according to sources.
Nike did not immediately respond to a request for comment on the terms of the agreement.
James' lifetime commitment is the latest in high-profile endorsement deals for NBA stars. Nike previously extended its deal with the Oklahoma City Thunder's Kevin Durant last year.
Nike shares rose about 1 percent in extended trading Monday. The stock has climbed about 37 percent this year, the top performer in theDow Jones industrial average.
— CNBC's Jessica Golden contributed to this report.