Nike and the National Football League made it official Tuesday morning, announcing that Nike has been granted the rights to design and manufacturer the NFL's on-field apparel. The league's prior ten-year deal with Reebok will expire following the 2011 season. 

The five-year deal was first reported Monday afternoon by Sports Business Daily and later confirmed by CNBC. Reebok reportedly paid $300 million for the 10-year rights in 2001.

Representatives from the NFL said the league will split apparel liceses among seven different companies, including Nike, New Era, Under Armour and G-III.

Financial terms of the NFL's deal with Nike and other apparel makers weren't disclosed, but Matt Powell, Chief Retail Analyst at SportsOneSource, estimates the league's new deals could be valued at around $1 billion. Adidas CEO Herbert Hainer had already told CNBC that he was prepared to accept defeat.

“We decided how much we were willing to pay,” Hainer said. “If somebody bids higher than us then we’ll accept that… So if we lose the NFL, it won’t make or break our company.”

In an interview with CNBC's Darren Rovell, Nike brand president Charlie Denson said Nike expects to change NFL jersey's “dramatically,” similar to what the brand has done recently with numerous college uniforms. Denson went on to say that the NFL has lacked that type of uniform “advancement” in recent years.
 
Relatedly, New Era was announced as the official cap supplier, while Under Armour will continue as the apparel supplier of the league’s NFL Spring combine. G-III will continued to manufacturer outerwear, fan gear and lifestyle collections while VF will also remain as a a key partner, manufacturing t-shirts and fleeces.