It’s no longer the biggest apparel deal in collegiate athletics, but now it’s officially official.
Tuesday morning, Michigan announced that it has finalized and updated its agreement with Nike to become the university’s the official athletic footwear, apparel and equipment provider, with the new deal taking effect Aug. 1 of this year. The development comes nine months after the then-record deal was announced.
The agreement is valued at $173.8 million if it runs the entire 15 years, and includes a $12 million initial payment to the university, $76.8 million in total annual payments and $85 million in apparel. The new deal runs through 2027, with a university option to extend the agreement to 2031.
Four months after UM’s new deal was reported, news surfaced that Texas’ new contract with Nike would be worth $250 million over 15 years. In January of this year, Ohio State announced its new deal with Nike, an agreement that will pay that school upwards of $252 million over 15 years.
The university also obtained oversight in the manufacturing of products in this new agreement. From the release:Throughout the partnership, Nike will abide by the Nike Code of Conduct, which meets, exceeds or has equivalent treatment of all requirements in the U-M Code of Conduct for Licensees in addressing labor standards.
The agreement provides that Nike makes available the list of factories where collegiate product is made and provides for independent, external monitoring and investigation of those factories by third parties mutually agreed upon by U-M and Nike.