Nike has terminated negotiations to renew its $8M, six-
year all-sport licensing deal with the Univ. of MI (UM),
citing parameters in the contract submitted by UM that
required Nike to comply with the school's Labor Standards
and Human Rights Policy. Nike's contract with UM expires
August 31, 2000 (Nike). In Detroit, Fred Girard notes that
UM "recently became a provisional member" of the Workers
Rights Consortium and that Nike CEO Phil Knight has "made no
secret of his disapproval" of the consortium, as the company
has recently severed ties with Brown Univ. and cut financial
support to the Univ. of OR, both of which are also members.
UM officials were "stunned" when Nike "abruptly pulled out"
of the renewal talks. UM AD Bill Martin said Nike is
"punishing" the school for "including contract language
establishing standards for working conditions in overseas
factories." Martin added Nike "tried to intimidate" the
university: "The saddest part of this is it really came at
the 11th hour. That resulted in our probably not being able
to replace them with another apparel manufacturer in an all-
sports contract." Nike paid UM more than $1.4M in cash and
sporting goods this year, and Martin said the deal being
negotiated represented a "substantial increase" in value
(DETROIT NEWS, 4/28). Nike Dir of College Sports Marketing
Kit Morris told Raphael Goodstein of the MI DAILY he
"doesn't foresee reentry" into additional renewal talks.
Morris: "There was a meeting of the minds and it became
apparent that we couldn't agree to terms. [UM made the]
requirement that we would have to live by an undisclosed
code of conduct that would require Nike to adhere to any
demands made during the contract" (MI DAILY, 4/27).
SIGNING THE CHAMPS: In Detroit, Dave Dye reported that
MI State Univ. (MSU), which is in the final month of a five-
year licensing deal with Reebok worth about $1M this year,
has signed a new deal for its basketball teams to use Nike
shoes, apparel and equipment beginning next season. The
Nike deal is "also expected to be worth around" $1M next
year. MSU men's basketball coach Tom Izzo will receive
about $200,000 per year under the deal (DETROIT NEWS, 4/21).
