Nike "won’t renew its apparel contract" with the Univ. of Texas before the company’s "exclusive negotiating window expires" tomorrow, according to sources cited by Soshnick & Novy-Williams of BLOOMBERG NEWS. This "opens the bidding to Nike rivals," including Under Armour and adidas. Recent deals suggest the UT deal "could be worth more than" $15M annually. Nike earlier this year agreed to pay Michigan $169M over 11 years. UT in '99 "ended its relationship with Reebok" in favor of a seven-year, $17M contract with Nike. UT and Nike "have since extended that contract three times." A source said that Nike "still has the contractual right to match any offer Texas receives." UT has "already shown its willingness to break ties with a market leader." In March, the school said that it would part with CLC "once its agreement expires" in June in favor of an in-house deal. The change "was designed to save the UT system" about $1M annually (BLOOMBERG NEWS, 9/29). In Austin, Cedric Golden cites a source as saying that Nike officials early in negotiations "wanted to sign a 20-year contract." However, former UT men's AD Steve Patterson "balked and pushed for a 10-year deal" worth $10-12M annually. It is "unclear what interim men's AD Mike Perrin has in mind for the shoe and apparel contract" (AUSTIN AMERICAN-STATESMAN, 9/30).
