Nike explores Formula 1 agreement

Nike is looking at Formula 1 again, although the discussions have not yet produced the sort of agreement that would justify declaring a return.

Sports Business Journal reports that the American sportswear company has held talks with Formula One Management about a possible sponsorship or licensing arrangement. Nike executives were present at the Miami Grand Prix earlier this year, but both Nike and Formula 1 declined to comment on the discussions.

The distinction matters because the company has already begun to place a toe in the paddock without making a championship-wide commitment. Valtteri Bottas and Sergio Perez have appeared in Nike footwear in Cadillac imagery, and custom Cadillac-themed Nike Dunk shoes were produced for TWG Motorsports executives Dan Towriss and Cassidy Towriss.

Those details suggest that Nike is studying more than a conventional team clothing contract. Formula 1's growth in the United States and its expansion into fashion and lifestyle products offer the company several possible routes, from licensing and merchandise to a broader commercial partnership with the championship.

Nike is not completely new to Formula 1. Michael Schumacher was one of its athletes between 1996 and 2002, when the company's swoosh appeared on his cap and helmet during the most successful phase of his Ferrari career.

The present paddock is more crowded with sportswear companies, and any agreement would need to work around team suppliers and individual driver arrangements. That makes the structure of a possible deal as interesting as the name attached to it.

For the moment the accurate description is that Nike is exploring an agreement. Formula 1 has become very good at turning exploratory conversations into expensive partnerships, but this one has not yet crossed that line.