Report: Indiana agrees to new 10-year extension with Adidas

Indiana Univ. athletics has “verbally agreed to a 10-year extension with long-standing apparel partner Adidas,” with a finalized agreement coming “in the next few weeks,” according to a source cited by Zach Osterman of the INDIANAPOLIS STAR. The extension “strengthens the relationship” between Indiana and the German shoe giant, which has run continuously since 2004. Indiana last signed an eight-year extension with Adidas in 2016 worth $53.6M in total (INDIANAPOLIS STAR, 4/30). In an interview on the “Hoosier Hysterics” podcast yesterday, Indiana AD Scott Dolson said that the renewal “is close to getting finalized.” Dolson: “The Adidas deal has been a really, really, really good deal for us. It’s nice to be really, really highly regarded by Adidas and we are.” Dolson suggested that the structure of this deal “might be different considering the changed environment” around player compensation and NIL rules. Dolson: “The deals are changing. The cash in the deals are changing. The environment is changing rapidly. We’re trying to make sure we can sustain an environment that really helps our department a great deal” (Ft. Wayne JOURNAL GAZETTE, 4/30).

A NEW APPROACH: Osterman in a separate piece noted the new extension will “likely reflect the changing nature of department/apparel relationships” that -- for most schools across the country -- are “evolving from arms-race cash payouts to collaborative partnerships providing schools with compensation in a different form.” Osterman wrote NIL reform has “turned that particular relationship on its head,” but there is “still value in three stripes on the shoulder of an IU basketball uniform.” However, when Adidas can “quite literally set up lucrative partnerships with athletes themselves, that subtracts from the inherent value of the schoolwide agreement.” Osterman wrote “neither side of these arrangements needs quite what they once did.” Companies “don’t have to pay schools for access and exposure,” and schools “don’t need apparel relationships for recruiting influence.” Athletics departments like Indiana’s have “plenty of money.” Osterman wrote, what they need most now is “what industry types would call branding, and the ability to show prospective athletes theirs would be greatly improved by the opportunities those departments can afford” (INDIANAPOLIS STAR, 4/30).