When Elliott Hill became chief executive officer of Nike Inc., among his first orders of business was securing its future alongside the biggest sport in the US: pro football.

In October, shortly after Hill arrived at Nike headquarters in Beaverton, Oregon, he called NFL Commissioner Roger Goodell. The league’s coveted licensing deal with Nike for its on-field uniforms was set to expire in 2027, and it had been considering other bidders.

It would be a major blow to Nike to lose the licensing pact, one that it wrestled away from Reebok beginning in 2012, as investors were fleeing the stock of the world’s biggest sporting brand after an awful stretch full of declining sales, cost cutting and worries that the company had damaged relationships with retailers and licensors beyond repair.

In an early message to employees seen by Bloomberg News, Hill, who had come back to the company after a previous stint as a top executive, promised to return to prioritizing sports as Nike’s core. The big critique of the company, and one of the reasons it replaced previous boss John Donahoe with Hill, was that it had gone overboard on chasing revenue from fashion and lifestyle products, while ceding market share to competitors focused on performance.

The NFL, meanwhile, wanted help with Goodell’s ambitious plans to push football abroad and grow its fanbase. Within two months, the they closed an extension to their licensing deal, aligning two of the most influential names in sports through 2038. The NFL gives Nike stability in one sport during a tumultuous time, while the league sees its new arrangement as a vital avenue for growth.

“Global is something we intend on becoming, and Nike is a global brand that can help us in that area,” Goodell said this week in New Orleans ahead of the Super Bowl. The league and the sporting giant’s teams are already discussing international plans, he said. “They’re a critical partner.”

Nike declined to comment for this story.

‘Strong Footing’

Nike and the NFL have been closely allied since the league ended its apparel licensing deal with Reebok, then owned by Adidas AG. While other companies were awarded licenses for elements such as helmets and base layers, Nike was chosen for the league’s most valuable offering: on-field uniforms. At the time, an analyst projected it could generate $500 million in revenue a year for Nike.

Hill is the third Nike CEO that Goodell has worked with. Mark Parker, now Nike’s executive chairman, signed that jersey deal. Donahoe inherited the previous pact and began talks with the NFL before he was replaced by Hill last year.

“Elliott coming in and really wanting to start that relationship off on really strong footing was clear,” said Joe Ruggiero, senior vice president of the NFL’s consumer products division. “The timing of that worked out.”

There are risks, though. Nike’s license with Major League Baseball has gotten headlines for all the wrong reasons. After complaints from players and fans last year about a Nike-designed revamp, MLB reverted to its old uniforms in an embarrassing turn for both parties.

International expansion has been a longtime goal for Goodell’s NFL, and Nike has a presence across the planet. Goodell recently said that could include an entire division of teams outside the US. Priority markets include the UK, China, Canada, Mexico, Germany and Brazil, where it played for the first time this season. NFL teams will play games in London, Berlin and Madrid in 2025.

As part of the arrangement, the NFL wants to use Nike’s expertise to ensure that it retains fandom in countries that it visits. That includes distribution and fan merchandise through a three-way deal with Fanatics Inc. If fans don’t have access to fan gear, those growth goals are a lost cause.

“We can put the greatest display on for one day — and if we don’t create a fan that’s going to be there tomorrow, we haven’t really done our job,” said Ruggiero. “Our product has got to be available where fans are shopping.”

Nike will be getting more involved in grassroots development programs, both in tackle football and flag football for boys and girls. That flag football component helps abroad as well, since the NFL sees the non-contact version of the game as a way to introduce international fans to the sport. The league is also working on founding pro flag football leagues for women and men as the sport heads toward its Olympic debut in 2028 in Los Angeles.

Nike and the NFL are collaborating more closely in their marketing efforts, too. They’ve worked together for decades, and Nike has dozens of pro football players signed to its endorsement roster, including Philadelphia Eagles stars Jalen Hurts and Saquon Barkley who are playing in the Super Bowl on Sunday. But the contract extension now allows for long-term planning on major advertising initiatives.

“We’re being incorporated into some of Nike’s bigger campaigns, and we’re incorporating Nike in ours,” Ruggiero said.

Beyond the football jerseys, Nike will play a key role in player safety by devoting resources from its sports research lab to product design to address injuries to the lower extremities. Goodell is looking to “enhance the science” in cleat safety on the various surfaces used at NFL stadiums. He described Hill, his new partner, as being both outspoken and cooperative.

“They’re one of the few partners we allow on the field,” Goodell said.