Back in early June, Michigan and Nike jointly announced a lucrative, but unspecified, agreement that reunited the university and the apparel provider. Now we know just how lucrative it really is.
Mlive.com is reporting that the deal with Nike is worth $169 million over 11 years, an average of just over $15.3 million annually. The agreement will pay UM $76.8 million in cash and $80.2 million in apparel for all 31 of the university’s sports.
The website writes that the university’s athletic department “will receive $12 million upfront, followed by $10.1 million-$10.9 million annually in cash and apparel/equipment” on a deal that runs from Aug. 1, 2016 through July 31, 2027; there’s no word on if one Ohio State Buckeye in particular is impressed with the financial aspect of the deal.
Additionally, UM also has a school option for a four-year extension that would extend the deal through 2031.
The average of $15.3 million annually easily makes this deal the richest in the history of college sports among public universities. The next-largest belong to Texas ($5.56 million-$5.76 million per year), Florida State ($4.2 million-$4.5 million) and LSU ($4.1 million-$4.5 million), all of whom are Nike schools.
The largest non-Nike contract belongs to Louisville, which receives $4.06 million-$4.28 million annually from adidas. It’s believed that the agreement Notre Dame, a private institution, signed with Under Armour in January of 2014 is worth in the neighborhood of $9 million annually.
Interestingly, it’s being reported that Michigan could’ve made even bigger money by staying with adidas or moving to Under Armour.
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
Just how long Michigan sits atop the apparel dollars mountain remains to be seen, though. Texas, currently with Nike, is about to see its current contract expire, and could very well command a sum in excess of what Michigan just received.