Nike Deal 11 yr, $169 mil
BREAKING: Michigan says its deal with Nike from 2016-2027 is worth $169 million w/$76.8M in cash alone)
— Darren Rovell (@darrenrovell) July 15, 2015
EDIT: And this...
Most outrageous part of the Nike-Michigan deal for $169 million? Sources tell me Nike WAS THE LOWEST BIDDER.
— Darren Rovell (@darrenrovell) July 15, 2015
Scared money don't make money.
Never leave us, Jim Hackett.
Curious to know the breakdown of other schools' cash/apparel amounts. That $169M number is absolutely insane. If typically contracts are represented in the amount of cash received ($77M or approx $7M per year), it definitely puts us above most all other schools, but not by the amount that we'd imagine.
Anyone know the amounts of the FSU/OSU deals?
Edit: Holy Shit..here's the FSU details via Rivals from 2 years ago.
The extension, signed June 27 of last year, stipulates that NIKE will provide FSU an average of 1.45 million in cash each year and 2.9 million in supplied product each year for five years, with a potential extension through 2022-2023. It also came with a hefty $3 million signing bonus. As a total, FSU's apparel contract is valued at roughly $24.5 million over the first five years, with a slight increase to $25 million in the next five years if the extension is signed.
Quick Google search on Bama's deal (albeit from 5 years ago)
Fresh off a national title in football, Alabama on Friday placed the contract's value at nearly $30 million in cash and product over eight years.
The extension, signed June 27 of last year, stipulates that NIKE will provide FSU an average of 1.45 million in cash each year and 2.9 million in supplied product each year for five years, with a potential extension through 2022-2023. It also came with a hefty $3 million signing bonus. As a total, FSU's apparel contract is valued at roughly $24.5 million over the first five years, with a slight increase to $25 million in the next five years if the extension is signed.
That contract puts FSU shy of the largest national apparel deals but still among the most well-compensated universities in college sports.
FSU's contract with NIKE has been renegotiated in 1998, 2005 and 2011 before the 2013 amendment. The past two amendments have both extended the term of the contract through 2022-2023 and significantly increased FSU's compensation from NIKE, from an original base compensation of $1 million per year to the current $1.45 million average.
$15.36 Million a year.
That's almost 4x what OSU makes and sparty makes $1.6M (LOL).
Stephen M. Ross wipes his ass with $1.6M
sparty is up for renewal right now as well (their Nike deal expires at the same time our Adidas deal expires), so there should be news soon on what they end up doing. No matter who they go with though, it won't even be HALF of what Michigan is getting (God PLEASE let them choose Adidas!)
Schadenfreude at its best I'm sure
Due to their "dominance," they appear to think that they can get a deal that is at least 5% higher.
Another poster said that they should get $250M for 30 year naming rights to their stadium.
Due to their "dominance," they appear to think that they can get a deal that is at least 5% higher.
Another poster said that they should get $250M for 30 year naming rights to their stadium.
I'm preparing financially for how much I'm going to spend that first month with Nike.
I gotta get new gear immediately on August 1, 2016 so I'm prepared for the upcoming season. Michigan Nike jerseys, shirts, hoodies, pants, shorts, shoes.
I'm camping out at MDen the night before the launch.
I've already began switching over to Nike. Got some great new shoes that actually fit and some Nike socks and a shirt. Starting to load up.
I'm still camping out on July 31 for August 1 when they open the doors and the gear is available.
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BIG MONEY POSBANG $$$$$$$$$$$$!!!!!!
Very nice. I think that means that not only did Hackett win the Showcase Showdown but both showcases at the end of the game as well with this particular contract. I have to think that even structurally between cash and apparel and other portions of the total value, this is about an order of magnitude more lucrative than, say, Florida State's deal, though I could be wrong.
This deal, over a 10 year period, is approximately 3 times that of FSU...
I keep looking at these details and thinking I've misinterpreted something...but I dont think I have. This contract is absurdly large. "Hats off" to Hackett is a gross understatement. The guy needs to be bronzed and placed in the center of campus.
Don't forget the next B1G TV contract is supposed to be at least $45 mil per year. With that type of money, greed would be the only reason to increase ticket prices.
A year. With the cash and apparel part.
(h/t @alecfurstenberg)
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$169 mil? Put a sewing machine in my basement I'll do it for half that.
Then Michigan definitely wouldn't hire you. Could you pay double that?
No, but my product would sell like hotcakes and meth. I'd give Michigan $85 mil and sit back while my brand grew like that vine from Jumanji. They would thank me in the end.
That's Bossman money, yo.
Texas is very happy, this sets the starting point for their negotiations.
But they are still the biggest in terms of revenue and merchandise sales. The rumor was already that they would be talking 15M/year, and that they would probably not go with Nike if they were in that range. Should be interesting to see what happens.
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If, per the reports, Nike was the lowest bidder, I bet we are about to see a whole new world of these kinds of contracts. All it takes is one team to set the precedent. I imagine Notre Dame is pissed over this, and Under Armor is pumped. Their deal will look like a bargain in a few years.
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