The NBA announced on Wednesday that it has signed an apparel deal with Nike beginning with the 2017-18 season.

The deal is an eight-year partnership. Financial terms were not immediately disclosed, but the deal is worth roughly $1 billion, according to sources, which is approximately a 245 percent annual increase from the previous deal.

"This partnership with Nike represents a new paradigm in the structure of our global merchandising business," NBA commissioner Adam Silver said in a statement. "As our exclusive oncourt apparel provider, Nike will be instrumental in our collective efforts to grow the game globally while applying the latest in technology to the design of our uniforms and oncourt products."

In March, Adidas proactively announced that it would not seek to extend its deal with the league. Adidas began an 11-year deal with the NBA in 2006, taking over for Reebok, a brand which it owns.

Unlike during the deals with Reebok and Adidas, Nike's logo will appear on NBA game jerseys -- a first for the league.

Nike scored the official uniform deal with the NFL in 2012 and has extended those rights until the end of the 2019 season.

Behind the scenes, NBA executives and Adidas officials had problems seeing eye to eye, as the Germany-based company still put most of its efforts into soccer. Earlier this year, Adidas dropped a spot in the U.S. sales rankings, as Under Armour became No. 2 in sales behind Nike.

While Adidas officials publicly said that the company's move into sleeved jerseys was a good one for retail, to make a shirt that was more wearable than a tank top, fans consistently panned the look.

Industry analysts will be curious to see how much the world's largest shoe and apparel company looks to push the envelope with the NBA, as its deal with the NFL has hardly resulted in much creativity save for a couple of teams, namely the Seahawks, Jaguars and Buccaneers.

Nike has been a marketing partner of the NBA since 1992, and at retail, produced replica jerseys under the Swingman line.

"We're excited to bring the full power of our global reach, innovation and creativity to partner with the NBA and grow the game in a way only Nike can," said Nike president and CEO Mark Parker. "In Nike, Jordan and Converse, we have three of the most connected brands in the world, and look forward to making the global growth of the game a successful strategy for both the NBA and Nike."

Nike and its affiliated brands control more than 90 percent of the U.S. basketball shoe market at retail. The company has endorsement deals with many of the league's biggest stars, including LeBron James, Kevin Durant, Kobe Bryant, Kyrie Irving and Russell Westbrook.