Ole Miss last month signed a seven-year contract renewal with Nike that "has a $13.9 million value and is double the prior deal,” according to Hugh Kellenberger of the Jackson CLARION-LEDGER. The partnership provides Ole Miss “with $1.65 million of Nike products during the 2012-13 season, and $2.05 million each year up to 2019.” The previous contract, a “five-year deal executed in 2007, was for $750,000 of gear and a $50,000 sponsorship contribution each year.” Ole Miss was still “paying $1.1 million a year to Nike for purchase of additional uniforms and equipment for its 12 athletic teams.” This new contract “eliminates that expense, though it does not offer a cash transaction between Nike and Ole Miss.” Ole Miss Senior Assistant AD/Communications & Marketing Michael Thompson Jr. said, “We had the opportunity to take cash in this deal. However, the conversion rate from product to cash -- it was more advantageous to take product, because we were spending additional dollars on product anyways." Kellenberger reported the deal is “significantly better" than the one between Mississippi State Univ. and adidas. The current agreement, which took effect in ‘09 "and runs through 2014, is admittedly below market: $330,248 a year in wholesale products, with the opportunity to purchase more at the wholesale price.” MSU and adidas remain in an “exclusive negotiating window for the rest of this year," and AD Scott Stricklin is "in pursuit of a ‘market correction.’" The school is “currently spending $500,000 a year out-of-pocket to fill the rest of its equipment needs” (Jackson CLARION-LEDGER, 2/12). WAPT-ABC reported the new Ole Miss contract “will take effect on July 1 and will last until the June 30, 2019” (WAPT.com, 2/12).
