NKE · 10-K · 2026A · Full report

Endorsement Contract Obligations

NIKE, Inc. · 2026-07-15 · Importance 64 · Surprise 42 · In source text

As of May 31, 2026, NIKE reports endorsement contract obligations, including marketing commitments, of approximately $15.5 billion, with about $1.7 billion payable within 12 months. The obligations primarily represent base compensation and minimum guaranteed royalty fees payable to athlete, public figure, sport team and league endorsers, and may vary due to bonuses tied to athletic achievements and royalties. In addition to cash, the company is obligated to furnish product to endorsers and cannot determine an annual amount for such product deliveries as contracts generally do not stipulate minimum product spending. The company highlights that actual cash payments could be higher or lower depending on performance-based provisions.

Key facts

• As of May 31, 2026, endorsement contract obligations, including associated marketing commitments, were approximately $15.5 billion with approximately $1.7 billion payable within 12 months. source
• The increase in Prepaid expenses and other current assets in fiscal 2025 was primarily due to prepayments related to endorsement contracts. source

Impact estimates