Well that certainly didn’t last long.
Back in June, Nike and Michigan announced a new agreement that reportedly easily surpassed the apparel agreements of every other public university. Today, it appears U-M has been knocked off that perch.
Citing sources familiar with the negotiations, the Austin American-Statesman is reporting that Nike and Texas athletics have reached an agreement on a 15-year deal “in what is expected to be the richest shoe and apparel deal in college sports.” The American-Statesman didn’t relay any of the financial particulars.
U-M’s 15-year deal is believed to be worth nearly $170 million — $76.8 million in cash and $80.2 million in apparel for all 31 of the university’s sports. After an initial payment of $12 million, the agreement, which runs from Aug. 1, 2016, through July 31, 2027, will average between $10.1-$10.9 million annually. There is also a school option for a four-year extension that brings the value of the deal up to the neighborhood of that $170 million figure.
This deal with Nike replaced U-M’s deal with adidas, which paid the athletic department $7.5 million annually.
Suffice to say, UT received overtures from every major apparel company before, reportedly, opting to stick with Nike. It has long been expected that UT would remain a Nike school.