Adidas has recently announced an extension of its contract with Minnesota Timberwolves and Team USA Basketball star, Anthony Edwards. This decision, confirmed by CEO Bjørn Gulden during the company’s quarterly earnings call, underscores the brand’s strategy to expand its presence in North America, particularly in the basketball category.

Central to this strategy is Edwards’s AE 1 signature sneaker, which has gained monumental popularity since its launch at the end of last year. The sneaker stands out with its unique design and clever marketing, contributing to a revitalization of Adidas’ basketball line and the signature sneaker market at large. Remarkably, the AE 1 has sold out on all drops in most sizes and colorways, boasting over 17,500 trades on StockX, where it commands an average resale price of $126, representing a 22% increase over its retail price.

Edwards is pivotal in Adidas’s plans to elevate its basketball category, directly influencing its growth objectives in the region. At just 22 years old, Edwards has already led the Timberwolves to their best playoff performance in two decades. According to reports, the new deal may earn him up to $50 million.

As the market for signature basketball shoes revives, fueled by younger athletes and increased competition from brands like Anta and Li-Ning, Adidas seems poised to make significant strides in the industry. This contract extension not only reinforces the brand’s commitment to basketball but also to cultural relevance among consumers.