Tim Tebow Reebok Jersey Recall Is 1st of Many Triumphs for Nike with New Deal

Nike sued Reebok into recalling their Tim Tebow Jets jerseys. Reebok better get used to coming up on the short end of this deal. Nike is going to emerge from their licensing deal with the NFL stronger than ever. 

More on Nike's bright future in a moment, but first, here is the news on the recall. Bob Van Voris and David Glovin of the San Francisco Chronicle passed along this information: 

"

U.S. District Judge Kevin Castel in Manhattan yesterday signed an order closing a suit filed by Nike and ordering that Reebok offer to buy back jerseys in retail stores and recall any jerseys under its control.

"

Tebow was traded to the Jets on March 21. Reebok wasted no time getting Jets jerseys on the market with Tebow's name, and Nike did not take over the licensing right until the end of March. This did not stop them from suing Reebok on March 27, and that eventually led to this decision.

Ultimately, this is going to prove to be a very small issue. Nike has the licensing rights for five years. The revenue gained and lost from this deal is just a drop in the hat in the overall picture of the money this deal is going to generate. It is simply a sign of the success to come for the sports apparel giants. 

The Oregonian's Allen Brettman reported back in March that Nike already had received a boost in sales. 

"

One of the best demand indicators is Nike orders for delivery from March through July. The orders are 22 percent higher in North America this year than during the same period a year ago. 

Analysts expect Nike in its first year to sell more than Reebok did across any of its 10 seasons. 

"

Nike is going to have more success with these licensing rights than Reebok because of who they are. They know how to build a buzz and create a demand for a product. People expect it of them. 

Just the fact that their name was attached to this deal piqued people's curiosity enough to boost these initial sales. The company will only increase this buzz as time goes on. 

NFL apparel and jerseys are going to become a bigger fixture in everyday fashion now that Nike has taken over. They increased the market size just because they are making the product. 

Nike will turn NFL apparel into a fashion mainstay, and they are going to profit wildly because of it. All Reebok can do now is forget about this part of the market and move on, just like they were ordered to move on from their Tebow Jets jersey.