Nike Opts To Extend Deal With Ohio State For Three Years At Additional $18.5M
Nike has "exercised a contract option to extend its three-part agreement" with Ohio State until '18, "positioning OSU to bring in about an additional" $18.5M, according to Kayla Byler of OSU student newspaper THE LANTERN. OSU and Nike "signed three separate seven-year contracts that went into effect Aug. 1, 2007." OSU Senior Dir of Media & PR Gary Lewis Jr. said that all three "will be extended until July 31, 2018." The agreement "sets OSU to gross" almost $46M over 11 years, with more than $18.4M "coming from the additional four years." The three parts of the agreement "are broken up into a standard license agreement, an equipment supply agreement and an appearance and consultation agreement." Nike over the original seven-year period is contracted to pay OSU a minimum of $1.4M "for the exclusive right to manufacture and distribute all OSU competition apparel" and now an additional $1.2M with the extension period. Nike must pay OSU 12.5% of "net sales on all OSU-branded Nike products at an annual minimum of $200,000 for the first seven years and $300,000 for the extended four years." The extended equipment supply agreement between OSU and Nike, "the most lucrative portion of the deal for OSU, sets the university up to gain" more than $17M in addition to the original deal of over $25.7M during the first seven years (THE LANTERN, 12/2).