Nike will be the Univ. of Illinois' "exclusive provider of athletic apparel and footwear" in a deal that "extends a two-decade-long partnership between the school and the brand" through '25-26, according to Danny Ecker of CRAIN'S CHICAGO BUSINESS. The new agreement, "which takes effect July 1," is worth $44.5M -- nearly "three times the value of the current deal." But in a "key change from the previous contract, all of that money is slated to be doled out to the school in retail products, with no cash element." Illinois Assistant AD/Business Development Marty Kaufmann said, "We wanted every coach to be able to look every recruit in the eye and say, 'You'll have everything you'll possibly need.' No other school will be able to say they'll equip them any better." Kaufmann said that the deal "will likely manifest in things like giving teams new practice uniforms and other gear every year instead of every two years." Kaufmann: "We're not going to have to stretch things as much." Nike for the past decade has provided Illinois about $1.2M a year "in retail products as well as $325,000 in cash." The school "would typically spend at least that much in cash on more Nike apparel as needed throughout a school year." Under the new deal, all of the money "will be paid in retail product value, with an option for the school to receive a $250,000 cash refund if it does not use the entire allotment" (CHICAGOBUSINESS.com, 1/19). Kaufmann said that while Illinois' deal "isn't on par with the money exchanged between Ohio State and Michigan with Nike, he felt it was a fair deal" (Champaign NEWS-GAZETTE, 1/20).
LEFT AGHAST: In Cleveland, Doug Lesmerises wrote Ohio State's record 15-year, $252M extension with Nike "is so huge, it's natural if some are aghast at all this dough over shoes and T-shirts and uniforms and a swoosh." OSU AD Gene Smith said, "It's huge and I understand that and some people will look on it negatively. But you know how we operate. This whole deal is going back to our kids, and once it's in play, that's going to be huge." Smith said that OSU "tripled its merchandise amount from the previous deal in order to give more to athletes." Smith: "I want our athletes to have more product. I want them to be able to leave Ohio State with more product." Smith also said that he "wants to ensure OSU athletes get access to the latest Nike innovations in that gear." Additionally, the deal "provides six Nike internships a year, two for athletes and four for other students." There also will be a "place on campus for club sport athletes, who play for fun and pay for their own gear, to get discounted Nike merchandise" (Cleveland PLAIN DEALER, 1/17).
REVOLVING DOOR: RUNNER'S WORLD's Megan Hetzel noted Under Armour's new deal with Yale "effectively ends a unique partnership Yale’s women's track and cross country teams" had with women's apparel brand Oiselle. Yale's deal with Seattle-based Oiselle was the brand's "initial foray into outfitting a collegiate program." The deal "gained attention because it was also the first time a smaller, women-only brand sponsored a university’s athletes." Oiselle Founder & CEO Sally Bergesen said, "We weren’t shocked. We have an understanding of how business works, and money can speak pretty loudly. But we put a lot of work and investment into it" (RUNNERSWORLD.com, 1/19).
DON'T CRY POOR: SI's Andy Staples wrote the "next time someone from an athletic department tries to say the school makes barely any money from the sale of a jersey baring a star player's number, remember that while after-the-fact royalties remain quite small, the biggest programs are making a pile of money up front for that player to wear a swoosh or three stripes or an interlocking U and A" (CAMPUSRUSH.com, 1/18).
