By Sara Germano

New Balance Athletic Inc. is signing U.S. Olympic hopeful Boris Berian to an endorsement contract, less than a week after rival Nike Inc. dropped its lawsuit against the runner.

Tom Carleo, vice president of performance running at New Balance, said the new contract with Mr. Berian is larger than the one New Balance offered in January. "It takes into account his successes since then, as he's now a national and world champion," Mr. Carleo said Thursday.

Nike previously had sponsored Mr. Berian in 2015, and the sportswear company retained the right to match competing sponsorship offers during the first half of this year. That right has since expired.

In January, New Balance made a three-year, $405,000 contract offer to the runner, which Nike argued it had matched. Nike filed a breach of contract lawsuit against Mr. Berian in May after the runner competed in New Balance products.

The lawsuit broadened into a wider dispute within the sportswear world, with rival companies Brooks Running Co. and Oiselle Running Inc., as well as New Balance -- which wasn't a party to Nike's lawsuit -- filing in support of Mr. Berian.

One issue in the dispute centered on a clause in the contract, known as reductions, which causes an athlete's pay to be reduced if their performance fails to reach a target. Mr. Carleo said New Balance's offer to Mr. Berian "doesn't contain reductions."

The 23-year-old world indoor champion in the 800 meters has said he no longer wished to compete for Nike and that he favored New Balance products, according to court filings. At issue in the case was whether Nike's contract offer, which included clauses to reduce Mr. Berian's pay if he failed to meet certain athletic standards, matched that of New Balance, which didn't include the clauses.

Nike last week withdrew its lawsuit, saying it didn't want any distractions for Mr. Berian ahead of the U.S. Olympic Trials, which determine the American track and field delegation to the Summer Olympics in Rio de Janeiro. Mr. Berian is expected to compete in the trials in the first heat of the 800 meters beginning Friday in Eugene, Ore.

Write to Sara Germano at sara.germano@wsj.com

(END) Dow Jones Newswires

June 30, 2016 18:41 ET (22:41 GMT)

Copyright (c) 2016 Dow Jones & Company, Inc.
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