Memphis never considered leaving Nike and did not take any bids from competing apparel companiesGETTY IMAGES
The Univ. of Memphis in November "quietly signed a five-year extension" with Nike that will run through June 30, 2023, and provide the athletic department with $11.25M in "products from Nike," according to Mark Giannotto of the Memphis COMMERCIAL APPEAL. The deal was "approved by the Tennessee Board of Regents in December." UM "never considered leaving Nike and didn’t take any bids from competing apparel companies." It is the "second five-year extension signed with Nike since the original agreement a decade ago." But "unlike" deals at nearby schools, the value of UM's deals has "remained largely stagnant." UM’s annual product allotment will start at $2.05M during the '18-19 school year and increase to $2.25M by '22-23, which is an "improvement from the contract extension" UM signed with Nike in '13, when the school received only $1.5M annually in products. The new agreement is "comparable" to the six-year, $12.16M deal Boise State recently reached with Nike that begins in July '19. The UM contract is worth more than fellow AAC school Houston gets from Nike ($1.3M annually), but "still falls short of what several other AAC public institutions receive under terms of their apparel agreements." UConn last year "signed a six-year contract with Nike" that is reportedly worth $32.45M, while Temple in '15 "agreed to a 10-year deal with Under Armour" worth $30M (COMMERCIALAPPEAL.com, 6/18).
MONEY PENNY: In Memphis, Mark Giannotto noted UM on Friday "held a public seat section" event at FedExForum for men's basketball season ticket holders, and the anticipation for Penny Hardaway’s first season as coach was "palpable throughout the arena." What "became clear Friday afternoon is that almost all of FedExForum’s floor seats, a majority of the lower bowl and club level, as well as a large chunk of the first eight rows of the terrace level, had already been claimed." UM Senior Associate AD/Development Adam Walker said, “It’s drastically different than last year. You can see the difference. It’s impressive what we sold in a few months.” Giannotto noted that is why university officials revealed at a BOT meeting this month that they "expect" a $4.5M "boost in ticket sales and donations" during FY '19. A source last month said that donations tied to '18-19 men’s basketball season ticket sales "already totaled" $4.86M, up from $2M at the same time last year. Giannotto noted financial concerns were the "primary driver behind Memphis’ decision to fire former men’s basketball coach Tubby Smith after just two seasons." The school owes him nearly $10M, but announced attendance "hit a 48-year low" during the '17-18 season. But Hardaway’s hiring, and his "subsequent success on the recruiting trail, infused this dormant fan base with energy." UM Athletics Sales Rep Joy Grimsley said, “It’s like getting a new toy. Not that anything is wrong with the old toy, but it’s something fresh and new” (Memphis COMMERCIAL APPEAL, 6/17).
