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Michigan's deal with Nike is worth $169 million
The apparel deal Michigan signed with Nike earlier this month is the richest in college sports among public universities.
The school released details of its agreement with Nike Wednesday, and according to Mlive.com, the deal is worth a whopping $169 million over 15 years. The contract, which outfits all 31 of Michigan’s athletic programs with “uniforms, footwear, apparel and equipment,” includes a payout of $76.8 million in cash and $80.2 million in apparel.
"After careful consideration, the right partner for the University of Michigan was Nike," interim athletic director Jim Hackett said in a statement. "This decision is about more than Michigan athletics; at the core, it is about our University community and it is about two great names reuniting for an opportunity that speaks to more than uniforms and apparel."
Michigan’s previous deal with Adidas was worth $7.5 million annually and expires on July 31, 2016. The school’s new Nike deal includes the option for a four-year extension, which would go through 2031.
From Mlive.com:
Without the option years, U-M and Nike have agreed to an 11-year, $122.32 million deal, which includes $12 million upfront. That $12 million payment will be followed by $10.1 million-$10.9 million annually in cash and apparel/equipment from 2016 through 2017. The contract option is for four years and worth $46.68 million.
Over the first 10 years of the deal, the deals will pay $4.82 million per year in cash before rising to $5.32 million the 11th year and final year. From there, U-M will have the option to sign a four-year extension worth $5.82 million per season.
For apparel and products, Michigan will receive $5.3 million in the first year of the deal. The figure will be lowered to $4.7 million in year two and rise by $100,000 per year until reaching $5.6 million in year 11. The figure will will continue to rise by $100,000 in years 12-15, should U-M opt for the extension.
Michigan’s new deal is far most lucrative among public universities. Texas ($5.56 million to $5.76 million/year), Florida State ($4.2-$4.5 million), LSU ($4.1-$4.5 million) and Ohio State’s ($3.6-$4.21 million) Nike deals all pale in comparison to Michigan’s.
Interestingly, according to ESPN’s Darren Rovell, Nike was actually Michigan’s lowest bidder.
Most outrageous part of the Nike-Michigan deal for $169 million? Sources tell me Nike WAS THE LOWEST BIDDER.
— Darren Rovell (@darrenrovell) July 15, 2015
The Wolverines will continue to wear Adidas through the 2015-16 academic year before switching to Nike officially in July 2016.
For more Michigan news, visit TheWolverine.com.
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Sam Cooper is a contributor for the Yahoo Sports blogs. Have a tip? Email him or follow him on Twitter!
