Going Pro: Russell Inks Three-Year Apparel Deal With AFL

Russell Replacing Nike With Three-Year AFL Deal

Russell Athletic has signed a three-year deal for exclusive AFL apparel rights in what the company “hopes is the first step in re-establishing itself in the pro sports licensing market,” according to Terry Lefton in this week’s SPORTSBUSINESS JOURNAL. Sources said that the new deal is worth about $5M annually, “including a heavy TV commitment that constitutes” 80% of the deal. Also included are “AFL-controlled league print and Internet advertising obligations, a grassroots youth football program, title sponsorship of an award and a rights fee.” Russell takes over apparel rights from Nike, which still has the league’s shoe rights and, along with Puma and others, “is in the mix for the AFL’s next round of shoe negotiations.” If the new apparel deal is approved, Russell would also get branding on uniforms, as well as on scoreboards and dasherboards during the playoffs. The deal also gives Russell “exclusive rights to sell AFL caps and other apparel.” Russell Athletic President Doug Kelly said, “Brand exposure is an important part of this deal, but selling AFL apparel will pay our bills.” Meanwhile, the AFL has not finalized a TV deal, but sources indicated that ESPN “was a favorite of league ownership.” One source said, “I can’t see new business partners signing large commitments unless this is an ESPN deal” (SPORTSBUSINESS JOURNAL, 10/23 issue).