Nike is currently negotiating an apparel sponsorship deal with Tencent for China’s League of Legends Pro League, sources confirmed to The Esports Observer.

There is currently disagreement from team organizations regarding the deal, as it would prevent LPL teams from seeking other clothing sponsorships.

Early reports from Chinese media outlets, which stated this was a five-year deal worth up to ¥1B RMB ($144M USD), were incorrect.

Sportswear brand Nike is currently negotiating an apparel sponsorship deal with Tencent for its League of Legends Pro League (LPL) competition in China. The deal was first reported by several Chinese media outlets earlier this month, however team sources familiar with the deal have told The Esports Observer that there are now disagreements over the terms of the contract. Sources also said that reports that the deal would carry a ¥1B RMB ($144M) price tag and a five-year term are incorrect.

The deal would see all LPL players, coaching, and team managers exclusively wear Nike branded clothing on game days. This would create an issue for team organizations with existing apparel partners, or those looking to sign apparel deals in the future, sources said. Edward Gaming, for example, is partnered with Chinese sportswear brand Li-Ning.

According to sources, Nike is now looking to sign a “conditional offer” tied to viewership numbers in China; sources say if the numbers go up, the deal continues, but if viewership declines, then the deal ends. The list of LPL sponsors for the 2018 season, which ended in September, included Mercedes-Benz, Doritos, Intel, HP, and L’Oreal Men Expert.

Related Article: Tencent Q3 2018 Revenues Up 24% YOY Despite Continued Regulatory Struggles

This deal would mark Nike’s second notable engagement with the Chinese esports space this year. In October, the brand collaborated on a campaign with LeBron James to promote the basketball star’s upcoming documentary Shut Up & Dribble, which included Jian “Uzi” Zihao—a player from LPL team Royal Never Give-Up (RNG).

The LPL was the first professional League of Legends competition to introduce a franchise-style system, however it operates differently than its North American and European counterparts. Run by Tencent Games, all participating teams were encouraged to build local venues to facilitate a home-and-away system, and all jerseys within the league are standardized and LPL branded. More teams can bid for specific cities each year, including those competing in the regionally split tier-two competition, the LoL Development League (LDL).

Tencent paid $400M for a 93% stake in League of Legends developer and publisher Riot Games in 2011, and later purchased the remaining 7% in 2015 for an undisclosed amount.

The Esports Observer reached out to Nike and the LPL, who both declined to comment as of the time of writing.

TEO China correspondent Hongyu Chen contributed to the reporting in this article.