The Univ. of MI (UM) has signed a one-year deal "to buy
equipment and apparel from Nike, even though the company
broke off negotiations on a long-term contract in which Nike
would have paid" the school, according to Michael Rosenberg
of the DETROIT FREE PRESS. The deal will cost UM "as much
as" $760,000, but the school will receive royalties of 7-10%
on UM products that Nike sells. UM interim AD Bill Martin:
"It's strictly a purchase agreement. It's motivated by both
our desire and Nike's desire -- I'm certain they were
sincere about this -- not wanting to leave our athletes in
the lurch." But Martin also said the deal is "not an
extension of the [$8M, six-year licensing contract expiring
in August] whatsoever. It's independent of it. There is no
sponsorship. We're paying them." Nike Corporate
Responsibility Manager Cheryl McCants added that "plans to
resume negotiations on a new contract" with UM "weren't in
the works" (DETROIT FREE PRESS, 5/13). Martin: "It's
strictly a cash-and-carry deal. We had placed our order for
next year for all our sports with Nike last December, and
the status of it became questionable the last few weeks"
(ANN ARBOR NEWS, 5/13). In Portland, Andy Dworkin cited both
Nike Dir of Global Issues Management Vada Manager and a UM
spokesperson as saying that Nike "might bid" on a long-term
deal next year, but UM "also is negotiating with other
companies" (Portland OREGONIAN, 5/13).
