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Tide now has most lucrative Nike deal in college sports

We think.

Alabama announced yesterday that they had signed a seven-year contract extension with Nike that will keep all Tide teams swooshed through 2018.

The new contract is valued at $30 million in cash and product over the next eight years, making it the largest Nike haul in the country based on various reports of other schools’ compensation.  Before the the Alabama deal, North Carolina had reportedly been the leader at just under $3.4 million annually; the Tide’s new deal works out to $3.75 million a year.

Neither of those deals approaches Michigan’s contract with adidas, the shoe and apparel company that got bent over to the tune of $66.5 million over eight years by the Wolverines.  

Adidas is also paying Notre Dame a reported $60 million over ten years.  

Adidas must have a very sore ass.

Anyway, where was I?  Oh yeah, back to the new ‘Bama deal.

Jon Solomon of the Birmingham News has a very thorough breakdown of the new perks the school received in the extension, including a “signing bonus” of $2 million payable immediately and a bump in the royalty rate Alabama receives from Nike.  The old rate was eight percent, while the new one will be at least 12 percent.

Needless to say, the athletic department was very pleased with this latest development.

“Together we sought an agreeĀ­ment that reflected our stature as a leader in college athletics on and off the field,” Alabama Athletics Director Mal Moore said in a statement. “I feel this agreement reflects that stature.”

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Respond to “Tide now has most lucrative Nike deal in college sports”
  1. BAMAQT says: May 15, 2010 12:47 PM

    ROLL TIDE ROLL!!!

  2. Deb says: May 15, 2010 2:38 PM

    I’m thrilled for Bama, but sometimes you have to wonder whether these deals really benefit the companies. Happen to be wearing a Bama championship shirt today, and reading that line about keeping Bama swooshed, looked down, and sure enough, there’s a swoosh on my shirt. And it’s prominently placed. But until that moment, I never noticed it.

  3. DCroz says: May 15, 2010 4:56 PM

    Deb:
    You may have not noticed the “swoosh,” but you know as well as I do that when Tide fans buy stuff, it’s only the “script A” that matters. Nike is perfectly happy regardless of the reason why we’re buying this T-shirt or that cap, just as long as we’re buying it.
    And buying it we are.
    Forget the AP poll; ‘Bama is going to be at the top of the Nike and SI poll as long as there’s lots of cash to be made from merchandise.

  4. Bious says: May 15, 2010 5:46 PM

    Means little as someone will soon break this as college sports continues to climb price wise.
    Bama is a great football school but not a national one.
    When Saban leaves shortly, they will continue what they have usually done the last 3 decades which is around average

  5. CoffinOfChaos says: May 15, 2010 6:39 PM

    Actually UofA is consistently ranked in the top 100 colleges making it a top tier school. Several of their undergraduate programs are ranked in the best out of all public institutions.
    Also, the contract is for the athletic department period so you might want to check what is going on outside of the football program before making such statements.
    Also, I’ll ask you and every other slow thinking person out there, where exactly is it Saban is going?

  6. DCroz says: May 15, 2010 9:09 PM

    Bious: “Bama is a great football school but not a national one.”
    Exactly what defines a “national” football school? Alabama is in the top 5 (and rising) in terms of how much revenue the football program generates annually. Its quarterback is from Texas; its Heisman-winning starting running back is from Michigan, and many other players are from outside the state. ESPN is doing whatever it can to get the Tide in as many nationally-televised season-opening games against top-flight programs as possible since it draws among the highest ratings of anyone, and not just because it’s in the SEC. It is tied with Notre Dame for the most national titles in the poll era, all in the last 50 years (half of ND’s were in the ’40s). And before you say it’s the result of all those in-state folks being such fanatics, remember that Alabama only has about 4.5 million people, many of whom cheer for the school across the state and many others who really don’t care, so there has to be more interest than just around here to account for all this.
    So if this does not define a “national” football power, what does?
    Oh, and one other thing: Yes, Saban has taken the Tide to heights it has not seen in 30 years (Gene Stallings did win the national title in 1992 and won 70 games in seven years, but you never really got the impression that ‘Bama was a dominant team during his tenure). But every Tide coach since Wallace Wade in the 1920s that has coached at least one full season except one has won at least ten games in a year. Even mediocrities like Ray Perkins, Bill Curry and Dennis Franchione (and disasters like Mike Dubose and Mike Shula) did it. Most schools in the country would gladly take our “average” seasons.
    And with what Saban has built, whoever succeeds him is almost certaily going to have a loaded cupboard for years. How else can you explain how a dunderhead like Les Miles could look brilliant at LSU–until recently, when the last of Saban’s recruits left?

  7. DCroz says: May 15, 2010 9:18 PM

    Coffin:
    While I didn’t see anything in Bious’s post pertaining to academics, it’s no use arguing the point with people about Alabama’s (or any other SEC school’s). They’re all convinced that the typical professor in Tuscaloosa is like the one in “The Water Boy” and the typical student is Forrest Gump. It’s one of those wonderful little stereotypes that the rest of the country has about the South, to go along with the idea that Bull Connor is still turning police dogs and fire hoses on blacks in downtown Birmingham. To them, it will always be 1963 south of the Mason-Dixon line regardless of any evidence to the contrary, all while the banjo player from “Deliverance” strums his tunes in the background.

  8. CoffinOfChaos says: May 16, 2010 3:59 AM

    @DCroz: I took “Bama is a great football school but not a national one” to mean they were not an academic school. Outside of the Ivy league there are VERY few “national” schools”
    But you are right, as someone who has lived in 8 states all over the U.S. (from Kentucky to Alaska) it is always the South that gets the raw end of the deal.
    News flash: there are redneck dumb asses everywhere and there happens to be a lot of very intelligent, well rounded, respectable people in the Southeast.

  9. Deb says: May 16, 2010 3:40 PM

    @DCroz …
    True, true. I was thinking only in branding and marketing terms. In actual sales terms, yes, I want the Bama merchandise, which means I’m buying the Nike brand. And the official sponsorship of my team is the only reason I’d buy the Nike brand.
    I’m taking Bious’s comment as a direct knock at Alabama’s football program lacking national importance over the last 30 years. The program hasn’t had the national relevance it had during Bear’s reign, but it’s still one of the most storied programs in college football. Anyone can go to Amazon.com and search for books on the Crimson Tide to see that.
    Now that the program is back on top, it’s definitely a “national” program. The comment about Saban leaving in a couple of years comes from a lot of media hype. I doubt he’s going anywhere anytime soon.

  10. DCroz says: May 16, 2010 6:30 PM

    Who knows? We see it happen all the time now. The days of coaches spending all their careers at one place are over, both them leaving on their own or schools kicking them to the curb. Saban may very well leave in a couple years; then again, he may be there another ten or more. Certainly no one can offer him more power than what he already has (he’s the de facto athletic director, answers only to the president, and is only required to make ten public appearances per year) and considering he’s reupped his contract for $5 million+ per year, it would have to be something else to make him want to leave. Maybe he’d like another challenge, such as going back to the NFL and proving he can coach at that level, or maybe he’d want to return back home to end his career (how hot is Bill Stewart’s seat at WV right now?). Who knows?
    But one thing is for certain: I’m going to enjoy the ride as long as we have it. :-)

  11. Deb says: May 16, 2010 7:09 PM

    Well, that’s the key phrase: Coaches do it all the time. People who don’t know any better think it’s unique to Saban, so they expect him to uproot whenever the clock strikes midnight. But I know his family seems pretty content, and that’s a big factor.
    Anything is possible. But after some of the wackos who’ve followed Stallings, my houndstooth hat is finally comfortable resting atop my Saban-autographed football. For now all’s right in Tuscaloosa. Like you, I’m just gonna sit back and enjoy ;-)
    ROLL TIDE!!

  12. blah says: May 17, 2010 4:38 AM

    Or maybe he’s planning to go back where it all started, for the challenge of all challenges, Kent State.
    Seriously.

  13. interested says: May 17, 2010 10:24 AM

    Slow day so a quick snippet as to SEC academics. What school has the most Draddy Award winners? For those that don’t follow college football the Draddy is given annually to the top Scholar Athlete in the country in football. ANSWER: Florida (an SEC school) followed by Air Force. Lest you think that it goes to some nerd type who really isnt that good of a player, 2 of UF’s winners have been Heisman Trophy winners.

  14. boosie says: May 19, 2010 12:03 PM

    Oregon football thanks you Alabama.

  15. Bielfriend says: May 20, 2010 5:44 AM

    There’s one thing all you “Roll Tide” folks forgot to mention. The great Bama is 1-5 against the only real National Team, the Notre Dame Fighting Irish!!!!!!!!!!!!! Roll Irish!!!!!!!!!

  16. uwlaw5856 says: Jun 9, 2010 9:53 AM

    SEC = Academics = Oxymoron…. I attended Bama and Wisconsin and the SEC is not even close….

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