The American Basketball Association (ABA) and International Apparel Group Inc are setting up a new company to develop team apparel and retail merchandise.

ABA Apparel LLC will have the exclusive rights to ABA officially licensed basketball apparel in a move intended to maximise the profitability of the league and its teams.

The ABA anticipates that an more than 60 teams will be playing in the US, Canada and Mexico for the 2007-2008 season and it expects the league to grow to its target of 100 teams over the next 4-5 years.

International Apparel Group, a division of Total Luxury Group, makes and sells apparel to major retailers and distributors around the world. Customers include US sneaker and athletic apparel brand Converse, and Randy Moss Clothing, a new line from one of the NFL's highest profile players.