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 $169 million? Sources tell me Nike WAS THE LOWEST BIDDER.
— Darren Rovell (@darrenrovell) July 15, 2015
I don't think UA is "pumped" - they did allegedly get turned down by M while offering a bigger contract
I mean pumped for the value they get on Notre Dame for 10 years.
I guess, but they also are likely wondering just what they'd have to offer the next school to compete with NIke. b/c whatever the +$X million they offered Michigan was not enough.
This will be an unpopular point, but I agree. I don't doubt that Michigan is one of the 3-5 most valuable marketing properties for an apparel company to represent, but I highly doubt that our brand is literally five times more valuable than the other 3-5 schools in that group. I think that the sheer size of this contract is more indicative of a coming sea change in apparel contracts than a reflection of how uniquely valuable Michigan is.
That being said, this doesn't detract from the absoutely stellar job Hackett was able to perform in negotiating this deal. When you're part of a trend you may blend into the crowd, but it's still a thing to be the man who started it. My comment also shouldn't be read to diminish the competitive advantage we'll gain for several years before other blockbuster contracts get negotiated.
Hackett is a boss. Stay.
5% off the top to Hackett. Now.
Goes the dynamite!
Does anybody think this deal gets done if Harbaugh isn't the HC? Personally, I don't think there's any way that Michigan could have pulled in this kind of money under Brady Hoke (or Dan Mullen).
I'd guess that it's primarily about Harbaugh and his "brand" (for lack of a better word). Nike knows that Michigan and Harbaugh will be in the spotlight over the next several years. Now.....let's actually play a game!
Is it $169mm over 11 years or 15? I'm seeing conflicting info. Brendan Quinn's article says:
According to contract details released by the Michigan athletic department, the university's deal with Nike is worth $169 million over 15 years, making it by far the richest of all apparel deals in collegiate athletics.
http://www.mlive.com/wolverines/index.ssf/2015/07/nike_michigan_1.html
While Mark Snyder's article says:
"According to a term sheet dated July 6, Michigan will receive $169 million over the 11-year agreement,"
http://www.freep.com/story/sports/college/university-michigan/wolverine…
The four extra years are extention years. 11 year contract with an option to extend another four.
I'm aware, but that doesn't answer the question. One of these two sources is reporting wrong info.
It's an 11-year contract with a 4-year optional extension. the $169 million is only if the contract is extended.
Mark Snyder is reporting $169mm over 11 years. So is he wrong? And should the OP be edited?
Looks like 169 over 15.
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It's $169 is for 15 years, or $157 (76.8 + 80.2) for 11 years. I don't know who/ how the deal can be extended though.
It's an arms race. The storm is coming my friends.
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Hackett a statue
Relevant: I just want to say "fuck you" and "I told you so" to whoever negged this post the other day:
http://mgoblog.com/mgoboard/nike-details-today#comment-3251709
So its $122mm over the first 11 years and $47mm over the 4 year option, for a total of $169mm over 15 years. The OP and thread title should be edited.
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Is this normal ESPN reporting not adding up or are we missing something?
That works out to an average of $11.26 million a year over the 15 years. When breaking it down by year, it is actually not bigger than the 10-year deal Notre Dame signed with Under Armour last year, a source with knowledge of that deal told ESPN.com.
http://espn.go.com/college-football/story/_/id/13260992/michigan-11-yea…
People are doing a lot of miss reporting right now. It is over $169 over 15 years, or about 11M a year.
Notre Dame's contract is still reportedly bigger, as I believe they are getting up to as much as $7M a year in just cash, with apparel on top of it.
I believe Notre Dame's deal is closer to $12M a year, which is probably in the ballpark of what they offered us.
The fact that we signed with Nike for an amount in the same neighborhood, should really tell you how much Michigan is worth. I bet the Under Armour and Adidas offers were huge.
UA can try, but they will never be as big as Nike.
@darrenrovell still think UA is such a big threat to Nike? Schools take less money just to have Nike.
— Chris/Nashville_MMA (@Nashville_MMA) July 15, 2015
