Michigan Signs Nike Contract Worth Up to $173.
8 Million Nearly 10 months later, Michigan State’s athletic department has officially signed a deal with Nike.
The two sides reached a short-term agreement last summer when the deal was first announced, but U-M announced today that the current 11-year option is followed by a four-year option that would total $173.
8 million.
Announcing a possible final signing contract.
Activities.
The 11-year contract is worth $127.
12 million, and includes $53.
52 million in cash, $56.
8 million in clothing, and $12 million in signing and down payments.
It was to be paid.
U-M also has the option to order $4.
8 million in additional apparel, which is not included in the annual total.
The agreement, which covers 4,444 U-M sports, was signed by Athletic Director Warde Manuel on his third day on the job.
The $173.
8 million is slightly higher than the $169 million total the school announced last summer and would cover the period through 2031 if Michigan State extends the contract.
Michigan will leave his current apparel company, Adidas, at the end of July.
His contract with Nike begins on August 1st.
When the Nike deal was announced last summer, it was presented as the largest agreement between a school and a footwear and apparel company, second only to the state of Texas (15-year, $200 million extension).
followed by Ohio State (15-year, $200 million extension).
He reportedly restructured his contract with Nike ($252 million extension) and then left the Wolverines.
Here’s a breakdown of U-M’s terms in the 34-page contract:
There are performance bonuses for soccer, men’s basketball, and women’s basketball teams.
Football His team’s prize money ranges from $100,000 for winning the national championship to $10,000 for advancing to the Big Ten title game.
The basketball team’s highest bonus is $25,000 if it wins the national title.
Women’s teams can earn up to $7,500 for winning the national title.
• Nike will pay U-M a royalty of 15% of net sales for non-footwear and 5% for footwear.
U-M will receive at least $18.
37 million in royalties over 11 years ($25.
05 million for the 15-year deal).
• Jumpman branding for basketball and football, making U-M the first Jumpman football program in the nation.
Other programs other than football and basketball teams may be provided with Jumpman/Jordan branded footwear and apparel if available at their current Nike school.
However, you must apply at least one year in advance.
• Coaches of flagship programs (football, men’s and women’s basketball) are required to represent Nike twice each year.
Other coaches have to do it every year.
• Collaborate on innovations in sports technology.
The topic intrigued former California State University interim athletic director Jim Hackett, who laid the groundwork for the deal.
• Conducts three of his U-M student internships at Nike headquarters each summer.
• Nike receives suites and basketball boxes at every football game, plus in-game street advertising and full-page advertising in every game his program.
Nike will also receive ticket allocations for home and away football, men’s and women’s basketball, and Big Ten and NCAA postseason games.
• U-M could be penalized during the contract for several reasons.
Logos can be “polished, splattered, or taped off” from game to game, which can result in up to $100,000 in value lost per game.
• If U-M’s football or basketball program is sanctioned by the NCAA for a serious violation that results in the loss of multiple scholarships or postseason suspension, Nike may extend the contract for the duration of the fine.
can.
• Nike must adhere to the Nike Code of Conduct on Labor Standards, which includes a list of factories where products are manufactured for external oversight.
•U-M must decide whether to exercise his option by May 15, 2026, 13 months before his contract ends.
• Many of the U-M Olympic sports have existing third-party agreements that have been allowed to continue.
OSU’s Lee beats U-M after Nike transfer Contact Mark Snyder at atmsnyder@freepress.com.
Follow @mark__snyder on Twitter.
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