Li Ning signs Thabeet

Chinese shoe companies Li Ning and Peak have been making moves in the NBA the past few seasons with the signings of top players and in this tumultuous U.S. economy, they will be competing direclty with the likes of Nike, adidas and Reebok in the American shoe market.

In this week's issue of Sports Business Journal, Liz Mullen reports that Li Ning has signed Grizzlies rookie center Hasheem Thabeet to a three-year deal. Thabeet's agent Bill Duffy would not disclose any financial details, but said that as part of the deal Li Ning will contribute to the #2 pick's charitable endeavors in his native country of Tanzania.

Duffy did say that Li Ning "offered us a very aggressive contract relative to the American shoe companies." Although this is a troubling time with the U.S. economy, companies like Li Ning and Peak will now have the opportunity to play ball with the top American shoe companies.

According to Mullen, the sneaker endorsement market has been down for NBA players and for professional athletes overall this year to the extent, agents say, that players who formerly got six-figure deals are taking deals worth $25,000 or $50,000. This is the perfect time for Li Ning and Peak to sign players looking for deals more lucrative than what the top U.S. companies can offer.

The current roster of endorsees certainly help to legitimize both companies. Peak currently has Ron Artest, Jason Kidd and Kevin Love among others and Li Ning features Shaquille O'Neal, Baron Davis and Jose Calderon. It will be very interesting to track these two companies' progress in the basketball market, both in terms of sponsorship deals and overall sales.