nike
nike will pay you a princely sum to wear this aerodynamic fez

Nike Will Pay Michigan All Of The Money Comment Count

Ace

When Michigan chose to partner with Nike for their next apparel deal, it was rumored they did so while turning down more generous monetary offers from Adidas and Under Armour. The details of the Nike contract have been released, and it's safe to say Jim Hackett struck a pretty solid deal regardless. Via MLive's Brendan Quinn:

According to contract details released by the Michigan athletic department, the university's deal with Nike is worth $169 million over 11 years, making it by far the richest of all apparel deals in collegiate athletics. The contract, which will supply all 31 U‐M athletic programs with uniforms, footwear, apparel and equipment, will pay $76.8 million in cash and $80.2 million in apparel.

Michigan will receive $12 million upfront, followed by $10.1 million-$10.9 million annually in cash and apparel/equipment.

Notre Dame's 10-year contract with Under Armour, which surpassed Michigan's then-record contract with Adidas, is reportedly for $90 million. From Quinn's article, the next-highest contract for a public school is Texas' deal with Nike, which is worth a little over $5.5M/year.

Yes, saying Michigan signed a deal for $Texas may actually be understating things. Take a bow, Jim Hackett.

UPDATE: The $169 million figure is a little misleading, as that apparently includes four option years tacked on to the end of the deal.

As part of the still-record-shattering deal, Michigan will make a pretty penny on royalties:

In addition to shattering the record for the largest deal in NCAA history, Michigan will also receive 15-percent royalty rates on apparel purchases. This passes Notre Dame's 13-percent and is believed to be the highest in the country.

Michigan has a 10% royalty rate with Adidas.

Comments

MGoBrewMom

July 15th, 2015 at 2:14 PM ^

should expect really cool gear, with high prices that will fund this through our own generous "donations". We have an alumni and fan base that will support this. Nike doesn't just love Michigan...they've proven to be smart over the years. So they are counting on us all to make this a positive partnership. I'm pretty sure they won't be disappointed. But make no mistake, *we* are funding it.

Joined: 08/13/2009

MGoPoints: 22969

turd ferguson

July 15th, 2015 at 11:51 AM ^

Do we know if the (much smaller) numbers that people have been throwing around for peer programs and likely UM bids have been in terms of cash only or cash + apparel?

Joined: 12/09/2009

MGoPoints: 26493

MgoDlu

July 15th, 2015 at 11:51 AM ^

Don't know about the others but heres what I found

 

Notre Dame and Under Armour announced Tuesday that they have agreed to the most valuable shoe and apparel contract in college sports history.

The private school did not reveal the value of the 10-year deal, which will begin when its contract with adidas expires at the end of June, but sources told ESPN.com that the value of the deal, in cash and merchandise combined, is worth about $90 million.

Joined: 08/07/2010

MGoPoints: 739

Wolverine Devotee

July 15th, 2015 at 11:59 AM ^

A HUGE positive here is that Michigan gets to keep their equipment providers in Softball, Baseball and Hockey.

Especially great for Softball since they're with DeMarini which is the Nike of bats.

 

 

 

Joined: 06/29/2009

MGoPoints: 31528

kdhoffma

July 15th, 2015 at 1:05 PM ^

According to this:

Michigan’s existing third-party agreements can continue, as long as they are not purchased from competitors Under Armour, Adidas, Reebok and Puma.

Much of Michigan's hockey gear is ccm... a subsidiary of Reebok.  Thus I'm assuming they will be moving to primarily Bauer, or maybe Warrior for their protective gear.  Unsure how they handle skates/sticks... skates especially can be very tought for a player to move between brands/models, they all fit so differently.

Joined: 07/10/2008

MGoPoints: 4983

jg2112

July 15th, 2015 at 12:05 PM ^

Manchester United will receive 750 million pounds for the next 10 years from its new deal with Adidas.

Michigan has some catching up to do, and yes, I understand the difference in global reach between world soccer and amateur sports. This just provides a little perspective.

Joined: 11/24/2008

MGoPoints: 9925

FreddieMercuryHayes

July 15th, 2015 at 12:22 PM ^

Microsoft just recently signed a contract with the department of defense for 3 years and $617 million dollar software deal.  So Michigan has some catching up to do, and yes, I understand the difference between the military and amateur sports.  This just provides a little perspective.

Joined: 12/29/2010

MGoPoints: 40856