Louisville resigns with adidas - 5 yr $40 million

Submitted by Leaders And Best on

Louisville resigned with adidas with a 5 year $40 million dollar contract. The $8 million per year is the third largest collegiate apparel deal and puts them just under the $8.2 million per year Michigan makes from adidas. Pretty surprising number that adidas paid for Louisville after letting Notre Dame walk to Under Armour for 10 years and $90 million (although the Under Armour deal includes an option to take payment as stock as well) and Tennessee to Nike for far less than $8 million per year. Going to be interesting to see what Michigan decides to do when their contract is up in 2 years.

http://www.courier-journal.com/story/sports/college/louisville/2014/04/17/louisville-athletics-sets-significant-announcement/7816041/

http://espn.go.com/mens-college-basketball/story/_/id/10795147/louisville-cardinals-receive-40-million-5-year-deal-adidas

MgoRayO3313

April 17th, 2014 at 12:27 PM ^

Financially I agree with your statement 100%. Nike will never pay us what Adidas does because they do not have to. However, as much as some on this board hate to admit it, Nike is clear and away the best option to go with if you are looking at drawing top athletic talent to your university.

Coaching multiple sports gives me an opportunity to see/compare what brands are worn and preferred by the largest percentage of teen athletes. Far and away Nike carries the most weight in this particular market. Their brand and swoosh have become synonymous as 'the standard'. Although this seems superficial to the majority of us adults the kids not only care, but in most cases it factors into their decision. I'm not saying it is a make or break deal in all cases but I think most of us (especially those of us without teenage kids) would be surprised how much 'the brand matters' talk truly comes up either in everyday conversation or social media.

Financially, Adidas is easily the best choice. However, if you want to reinvent/reestablish a culture of success, currently, nike is the brand carrying the most pull. Like it or hate it.

Having that swoosh gives your program the leg up and Nike damn well knows it.

Tuebor

April 17th, 2014 at 11:32 AM ^

The ripping issue seems like it has been fixed.  It was an issue in 2011 - 2012.  I don't recall seeing any ripped jerseys this past year (2013- 2014).  Football is a violent game and jersey tears aren't outside the norm.  It did seem like 2011 had a few more than usual.  2012-2013 basketball was bad but this last year I didn't notice any rips. 

 

Adidas is debuting a color that is closer to maize (see the maize practice jerseys) soon too. 

Honestly I think people put way too much into the whole nike vs adidas vs under armour thing.  Hell the NFL wore rebok up until 2 years ago. 

 

Also is that your German Shorthaired Pointer in your avatar?  Nice looking dog.

MgoRayO3313

April 17th, 2014 at 12:34 PM ^

It's funny because this happened to like three NBA players in the span of two weeks. They were all the same model shoe (or appeared to be from pics) and the all suffered similar fates.

Clearly a faulty product model that since these incidences (at least to my recollection) has not been worn by the guys who wore them before.

As bad as these tears were, oddly, the outcry against nike lasted like an entire week. When it happens to Adidas the anger that ensues lasts for years.

Leaders And Best

April 17th, 2014 at 11:26 AM ^

But I think it was in the $2-3 million range.

I think Alabama or UNC has the largest current Nike contract at around $3.75 million per year.

EDIT: I think I may have misinterpreted that. Texas has the largest Nike contract netting around $5.56 million-$5.76 million per year when you combine apparel product and cash. Different sites have different numbers posted, but I think you get the idea. Nike is paying the biggest schools around $4-5 million per year.

Leaders And Best

April 17th, 2014 at 11:37 AM ^

you can pretty much pencil in adidas right now. Nike has not shown any signs that they are willing to pay like adidas, and this Louisville deal shows that adidas is still going to shell out the cash. I had some doubts about adidas' willingness to pay for collegiate apparel contracts after ND and Tennessee left adidas earlier this year, but this news proves otherwise.

Canadian

April 17th, 2014 at 11:42 AM ^

Hate being the grammar nazi but Louisville re-signed not resigned. I just won an argument last week about this common mistake with regards to Joe D resigning.

WolvinLA2

April 17th, 2014 at 11:57 AM ^

I think there's a difference between slang and blatant misspelling, especially when that misspelling is another word, one that means the exact opposite. Re-sign means to continue, and resign means to quit. I had this issue at work recently when my coworker wrote "apart" but meant "a part" which are also opposites. No one is crucifying you for it, but when you make a mistake, you only look worse when you try to explain why your mistake is actually OK.

vablue

April 17th, 2014 at 11:48 AM ^

Is taking the bigger contract actually getting more money? I have to believe that with Nike or Under Armour Michigan would sell considerably more merchandise than they do with Adidas, whose product lines are both unimaginative and of very low quality. So at what point do those sales make up for a lower contract?

vablue

April 17th, 2014 at 5:10 PM ^

The people I know all buy far less now because the shirts are just crappy. I still have Nike clothes that I wear, my Adidas gear wears out in less than a year. The question is how much more do you have to sell to make a difference. In addition, how much does DB factor higher sales into marketing the brand. Maybe it's a non issue, but I'd love to know.

jmblue

April 17th, 2014 at 1:32 PM ^

have to believe that with Nike or Under Armour Michigan would sell considerably more merchandise than they do with Adidas,
When you buy a Michigan jersey, Michigan gets just a small sliver of the proceeds (in the neighborhood of 5%). The rest goes to Adidas. That's true for all apparel deals. The school doesn't get that much from royalties even if it sells a ton. When we set records for merchandise sales, when the Fab Five were here, our royalties were only a couple of million dollars. It's the money up front that's much more lucrative.