SBD/Issue 199/Sponsorships, Advertising & Marketing

Univ. Of Michigan Inks Eight-Year, $60M Deal With adidas

The Univ. of Michigan (UM) has inked an eight-year deal with adidas worth $7.5M per year that is “believed to be adidas' largest with a public university,” according to Mark Snyder of the DETROIT FREE PRESS.  UM's current Nike contract is worth about $3M per year.  Under the new contract, which begins with the ’08-09 academic year, adidas will outfit all 25 of UM’s varsity teams.  There is also a “‘most favored nation’ clause in the contract that will keep [UM] as adidas' top college deal.”  adidas already has deals with Notre Dame, UCLA, Tennessee, Indiana, Nebraska and Wisconsin.  UM said that the contract “has provisions dealing with labor and human rights issues”  (DETROIT FREE PRESS, 7/11).  The AP’s Larry Lage reported adidas gave UM a $6.5M signing bonus in a deal worth $3.8M in cash annually, “with the school holding a five-year option when it expires following the 2016-17 season” (AP, 7/10).  In Detroit, Angelique Chengelis reports UM will also receive $2.2M worth of product to outfit its teams, and will receive $600,000 annually in guaranteed licensing.  UM Athletics CFO Jason Winters said that this is “one of the strongest deals in college sports and will help the athletic department in other ways.”  Winters: “Funding from the new agreement will provide added resources to our long-term facility renewal plan.”  Chengelis notes the new UM adidas gear will be in stores next summer (DETROIT NEWS, 7/11).

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