Late last month, Lego and Nike announced a new collaboration of co-branded products and experiences debuting in 2025. Though details were scant, interest was high as news of the multiyear deal prompted many fans to imagine their own designs and products.

Shortly after Lego’s announcement, Barbie revealed it too was wading further into sports-related marketing. The Mattel brand unveiled its new brand campaign, “Give Limitless Possibilities,” at the Aug. 30 WNBA game between the Chicago Sky and Indiana Fever as part of a lengthier push of hosting branded game day activations at U.S. sports arenas.

“The brand really remains dedicated to honoring women’s sports and highlighting the powerful role of play,” said Krista Berger, senior VP, Barbie and head of dolls at Mattel. “We recognize the powerful role sports play in giving limitless possibilities to young girls.”

Toy brands including Lego and Barbie are acknowledging such synergies and the growing potential of sports as lucrative revenue drivers through new collaborations and partnerships. At a time when the toy industry is struggling to regain the momentum spurred by early pandemic sales gains, sports represent a much-needed bright spot for the category, experts say.

In addition to its WNBA deal, Barbie teamed up with the Professional Women’s Hockey League earlier this year on a line of apparel and accessories with inspirational slogans. Other Mattel brands are also planning activations with professional and minor sports leagues as part of a July deal with entertainment company AthLife. Lego, meanwhile, has also worked with Manchester United and NASCAR.

Multigenerational appeal

“Parents understand that physical activity is an important aspect of childhood and it’s very appealing both for parents and grandparents doing gifting to have that aspect of the toy,” said Juli Lennett, VP, industry advisor for toys at market research firm Circana.

Sports licensing and toys generated roughly $1.2 billion in U.S. revenue for the 12 months ended July 31; the category has seen revenue skyrocket 158% since 2020, according to Circana. By comparison, overall toy sales have been essentially flat; 2023 was the worst-performing year for sales that Circana has reported, Lennett said, noting that 2024 has seen more sales stabilization.

Part of the uptick in sporting-related toys is driven by interest from adults in sports trading cards, which represent some 66% of the $1.2 billion sports-related toy market. Such cards soared in popularity during the pandemic as consumers broadcast their interest on social media during lockdowns. Now, both adults and kids are buying and trading cards as the trend interests both generations, Lennett said.

The Lego-Nike collab may appeal to both groups as well, as older consumers gravitate toward Lego sets as collectibles and hobbies. The deal is expected to build awareness with new consumers for both brands and encourage the physical activity of sports. Nike in particular could see a boost, specifically with younger customers as it is losing share to newer sneaker brands such as On and Hoka. While Lego’s sales are flourishing—the brand just reported a 13% rise in revenue for the first half of 2024—Nike saw its most recent quarterly sales decrease 2% and expects a sales to decline in the mid-single digits in fiscal 2025.

“Getting the Nike brand in front of children, that is a brilliant branding strategy people tend to be loyal to brands they had in childhood when it comes to consumer products,” said Chris Byrne, a toy industry analyst.

More: How marketing could fuel a comeback for Nike

The partnership came about due to “parallels and common ground” between the two brands, according to Alero Akuya, VP of brand development at the Lego Group, who noted that the “imaginative power” of Lego bricks would combine well with the “just do it” messaging from Nike. Both brands posted a video announcing the team-up on social media and plan to begin marketing next year. In an email, Akuya wrote that sports are trending in toys because of commonalities.

“Both toy brands and sports have the essential element of physical play that underpins them,” she wrote. “But beyond that, both allow children avenues to channel their creativity in a way that few things can, whether that be bringing your wildest imaginations to life with LEGO bricks or visualising yourself making that winning play in your back garden.”

For Barbie, a focus on women’s sports has been integral nearly since the brand’s inception, according to Berger, who called out that Barbie’s first sports doll debuted in 1962, three years after the brand’s founding. Barbie Night Games, which include giveaways, photo ops, branded jerseys and promotions, have occurred at MLB and WNBA games. Basketball legend Sue Bird, a Barbie role model with her own doll, was on hand to unveil the recent campaign at last week’s WNBA game.

Berger said she expects Barbie’s work with sports and athletes to continue as the brand looks to showcase “limitless potential.”

Byrne noted that the pairing of sports and toys fulfills a desire from today’s parents to give their children more physical activity and inventive play.

“If it gets parents thinking about kids being more active and playing and having time that is unstructured to follow their own imaginations, you can’t get much better than that,” he said. “One of the things we keep observing that is lost in contemporary play, kids don’t have a lot of free time.”