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Michigan's Nike Contract Worth $169 Million, Richest in College Sports
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Strut Offline
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Michigan's Nike Contract Worth $169 Million, Richest in College Sports
I wonder if Jim Harbaugh factored in at all. Anyway another arm in the arms race!

By Jerry Hillman CBS Sports

There's a new champion in the apparel contract arms race ... for now, anyway.

Michigan revealed the details of its new all-sports apparel contract with Nike on Wednesday, per MLive.com, a contract that will pay it a record $169 million through 2027. The Wolverines will receive $80.2 million in apparel over the life of the deal and $76.8 million in cash.

After an initial "signing bonus" of $12 million, Michigan will receive between $10.1 million and $10.9 million per season -- the richest apparel contract in college athletics. Per MLive.com, Texas checks in as the runner-up among public schools at $5.56-$5.76 million per year.

When signed in 2007, Michigan's previous apparel contract with Adidas had been the most lucrative of its kind. Nonetheless, athletic director Jim Hackett announced the Wolverines' decision to switch from Adidas to Nike in a statement last week.

"After careful consideration, the right partner for the University of Michigan was Nike," Hackett said. "This decision, this partnership is about more than Michigan athletics; at the core, it is about our University community and it is about two great names reuniting for an opportunity that speaks to more than uniforms and apparel."

The Adidas contract expires at the end of July 2016, with the Nike agreement replacing it the following August.

ESPN reported Wednesday that Hackett wasn't bluffing when he talked about making the decision on "more" than just the financial bottom line -- that, in fact, Nike had offered the lowest bid of the three submitted by Adidas, the Swoosh, and Under Armour.

Nonetheless, the deal still dwarfs those recently signed by Nike with other prominent schools, as MLive reports:

In February, Nike extended its contract with Florida through 2024, netting the Gators from $3.1 million to 3.5 million per year in Nike products. That deal did not include an annual cash payment, however. Prior to that, Tennessee secured an eight-year contract through 2023 worth nearly $4 million annually in merchandise and cash. The Vols' deal also came with a $2 million signing bonus.
Earn more than double what Florida got from the same company just five months ago, and make your basketball program happy, and purportedly make Jim Harbaugh happy? Highest bid or not, that seems like a win-win situation all the way around.
07-15-2015 01:37 PM
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TerryD Online
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RE: Michigan's Nike Contract Worth $169 Million, Richest in College Sports
Not sure of the veracity of the source...but......

"Darren Rovell ‏@darrenrovell 2h2 hours ago

On a per annum basis, source with knowledge of the Notre Dame/Under Armour deal says it's still bigger than Michigan's new deal w/Nike."





Either way, congrats to Michigan. That is how to leverage one's marketability for a nice, individual (not bundled with conferences) payday.
(This post was last modified: 07-15-2015 01:54 PM by TerryD.)
07-15-2015 01:52 PM
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Strut Offline
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Michigan's Nike Contract Worth $169 Million, Richest in College Sports
I found list interesting for who's there and who's not.

From http://www.MLive.com

Largest athletic apparel deals among public colleges

Michigan (Nike): $10.12 million-$10.92 million

Texas (Nike): $5.56 million-$5.76 million

Florida State (Nike): $4.2 million-$4.5 million

LSU (Nike): $4.1 million-$4.5 million

Louisville (Adidas): $4.06 million-$4.28 million

Kansas (Adidas): $3.8 million-$4.2 million

Ohio State (Nike): $3.6 million-$4.21 million

UCLA (Adidas): $3.54 million-$5.5 million

Note: Michigan's sums do not include option years
07-15-2015 02:09 PM
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TerryD Online
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RE: Michigan's Nike Contract Worth $169 Million, Richest in College Sports
ND's deal with Under Armour is allegedly for $9 million a year plus stock options (which increases the deal value greatly).


"When the deal was announced, Swarbrick said that it will allow the school to take some of the cash in Under Armour stock, which could bump the compensation past the reported $90 million."

http://www.si.com/college-football/2014/...parel-deal
(This post was last modified: 07-15-2015 02:26 PM by TerryD.)
07-15-2015 02:25 PM
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Okielite Offline
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Post: #5
RE: Michigan's Nike Contract Worth $169 Million, Richest in College Sports
Would love to have seen the look on Deloss Dodds face when he read this article.
07-15-2015 02:25 PM
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stever20 Offline
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Post: #6
RE: Michigan's Nike Contract Worth $169 Million, Richest in College Sports
Is it me or does it feel like Nike is starting to make a bit of a comeback?
07-15-2015 02:27 PM
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Post: #7
RE: Michigan's Nike Contract Worth $169 Million, Richest in College Sports
(07-15-2015 01:52 PM)TerryD Wrote:  Not sure of the veracity of the source...but......

"Darren Rovell ‏@darrenrovell 2h2 hours ago

On a per annum basis, source with knowledge of the Notre Dame/Under Armour deal says it's still bigger than Michigan's new deal w/Nike."





Either way, congrats to Michigan. That is how to leverage one's marketability for a nice, individual (not bundled with conferences) payday.

Texas is supposed to be signing a new deal with Under Armour as well.
07-15-2015 02:45 PM
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TerryD Online
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RE: Michigan's Nike Contract Worth $169 Million, Richest in College Sports
(07-15-2015 02:45 PM)bullet Wrote:  
(07-15-2015 01:52 PM)TerryD Wrote:  Not sure of the veracity of the source...but......

"Darren Rovell ‏@darrenrovell 2h2 hours ago

On a per annum basis, source with knowledge of the Notre Dame/Under Armour deal says it's still bigger than Michigan's new deal w/Nike."





Either way, congrats to Michigan. That is how to leverage one's marketability for a nice, individual (not bundled with conferences) payday.

Texas is supposed to be signing a new deal with Under Armour as well.



That will very likely make Texas the top dog in this category when that deal is signed.
07-15-2015 03:19 PM
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Post: #9
RE: Michigan's Nike Contract Worth $169 Million, Richest in College Sports
(07-15-2015 02:09 PM)Strut Wrote:  I found list interesting for who's there and who's not.

From http://www.MLive.com

Largest athletic apparel deals among public colleges

Michigan (Nike): $10.12 million-$10.92 million

Texas (Nike): $5.56 million-$5.76 million
Cincy 4.7 Million to 5 Million UA
Florida State (Nike): $4.2 million-$4.5 million

LSU (Nike): $4.1 million-$4.5 million

Louisville (Adidas): $4.06 million-$4.28 million

Kansas (Adidas): $3.8 million-$4.2 million

Ohio State (Nike): $3.6 million-$4.21 million

UCLA (Adidas): $3.54 million-$5.5 million

Note: Michigan's sums do not include option years
07-15-2015 03:28 PM
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SuperFlyBCat Offline
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Post: #10
RE: Michigan's Nike Contract Worth $169 Million, Richest in College Sports
Texas is going to get paid big on their next deal.
07-15-2015 03:29 PM
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RE: Michigan's Nike Contract Worth $169 Million, Richest in College Sports
We're just hoping that the admin doesn't cave in to Texas Tech or Maryland type silliness with the uniforms.
07-15-2015 05:36 PM
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He1nousOne Offline
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RE: Michigan's Nike Contract Worth $169 Million, Richest in College Sports
(07-15-2015 02:45 PM)bullet Wrote:  
(07-15-2015 01:52 PM)TerryD Wrote:  Not sure of the veracity of the source...but......

"Darren Rovell ‏@darrenrovell 2h2 hours ago

On a per annum basis, source with knowledge of the Notre Dame/Under Armour deal says it's still bigger than Michigan's new deal w/Nike."





Either way, congrats to Michigan. That is how to leverage one's marketability for a nice, individual (not bundled with conferences) payday.

Texas is supposed to be signing a new deal with Under Armour as well.

Shouldn't surprise anyone that Texas and Notre Dame are heading in the same direction in yet another category.
07-15-2015 06:35 PM
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SeaBlue Offline
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Post: #13
RE: Michigan's Nike Contract Worth $169 Million, Richest in College Sports
(07-15-2015 01:52 PM)TerryD Wrote:  Either way, congrats to Michigan. That is how to leverage one's marketability for a nice, individual (not bundled with conferences) payday.

[Image: 13600_0913_notredame_herlongf.jpg?w=300&h=225]

+1
(This post was last modified: 07-15-2015 06:52 PM by SeaBlue.)
07-15-2015 06:44 PM
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TerryD Online
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RE: Michigan's Nike Contract Worth $169 Million, Richest in College Sports
(07-15-2015 06:44 PM)SeaBlue Wrote:  
(07-15-2015 01:52 PM)TerryD Wrote:  Either way, congrats to Michigan. That is how to leverage one's marketability for a nice, individual (not bundled with conferences) payday.

[Image: 13600_0913_notredame_herlongf.jpg?w=300&h=225]

+1

You take compliments well...........

Isn't this thread about stand alone apparel deals?
07-15-2015 10:16 PM
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Gray Avenger Offline
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RE: Michigan's Nike Contract Worth $169 Million, Richest in College Sports
(07-15-2015 02:27 PM)stever20 Wrote:  Is it me or does it feel like Nike is starting to make a bit of a comeback?

I don't know, but I hate them nearly as much as I hate ESPN.
07-16-2015 10:32 AM
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SeaBlue Offline
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RE: Michigan's Nike Contract Worth $169 Million, Richest in College Sports
(07-15-2015 10:16 PM)TerryD Wrote:  
(07-15-2015 06:44 PM)SeaBlue Wrote:  [quote='TerryD' pid='12200643' dateline='1436986372']
Either way, congrats to Michigan. That is how to leverage one's marketability for a nice, individual (not bundled with conferences) payday.

[Image: 13600_0913_notredame_herlongf.jpg?w=300&h=225]

+1

Quote:You take compliments well...........

Isn't this thread about stand alone apparel deals?

Um, no. Just reminding the ACC folk what they got themselves into......

And now that you mention it, by saying nothing I would hate to seem complicit in the apparel racket that parents everywhere empty their wallets to support. It's out of control.
(This post was last modified: 07-16-2015 07:27 PM by SeaBlue.)
07-16-2015 07:22 PM
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RE: Michigan's Nike Contract Worth $169 Million, Richest in College Sports
Nike sure is putting a lot of $$ out there in the market place as they paid a **** load for the NBA too

http://www.nba.com/2015/news/06/10/nike-...rtnership/
07-16-2015 08:02 PM
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nzmorange Offline
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RE: Michigan's Nike Contract Worth $169 Million, Richest in College Sports
(07-15-2015 02:09 PM)Strut Wrote:  I found list interesting for who's there and who's not.

From http://www.MLive.com

Largest athletic apparel deals among public colleges

Michigan (Nike): $10.12 million-$10.92 million

Texas (Nike): $5.56 million-$5.76 million

Florida State (Nike): $4.2 million-$4.5 million

LSU (Nike): $4.1 million-$4.5 million

Louisville (Adidas): $4.06 million-$4.28 million

Kansas (Adidas): $3.8 million-$4.2 million

Ohio State (Nike): $3.6 million-$4.21 million

UCLA (Adidas): $3.54 million-$5.5 million

Note: Michigan's sums do not include option years

Team A signs a 12 year deal that starts out paying $100/yr and has a 4% compound growth rate (~2.5% for inflation, ~0.75% for sales growth from natural increases in population, and ~0.75% from non-inflation/population sales growth). Their average payout is $125, and their year 7 payout is $126. Team B signs a 12 year deal that starts by paying $126 in year 7 and grows by 4% every year until year 18. Their average payout is $158.

Does Team B have a better deal than Team A? No. They have the same deal only covering different times (years 1-12 v. years 7-18). Is there a difference in average payouts? Yes. Team B is getting ~25% more than Team A. What does that mean? Numbers are close to meaningless without knowing A) the years involved, B) the duration, and (ideally) the growth of all the contracts being compared.

It's also nice to know breakdown between cash and merchandise.

I guess that's the long way of saying that the above list *might* be highly misleading.
07-16-2015 11:33 PM
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