Penn State Sports Magazine
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O C T O B E R 2 0 2 5 5 W W W . B L U E W H I T E O N L I N E . C O M S urrounded by reporters following a Wednesday afternoon practice in early September, Penn State head coach James Franklin was asked about a story that had surfaced the day before by On3's Brett McMurphy. The uncon- firmed report stated that PSU's long- standing relationship with Nike was set to end in favor of a new, more lucrative deal with Adidas. Franklin was asked if he cared, now that the season had started. "At this point, I do not," he said. "That's something that the administra- tion is working on. Obviously, you have an awareness of what's going on, but we're focused on our opponent for Sat- urday." Two days later, Penn State and Adidas made it official, announcing the 10-year deal via a press release that included a slick video for social media channels. Per the release, Adidas will "become the official footwear, uniform, apparel and sideline partner of the Nittany Lions" in July 2026. Penn State hailed Adidas for its "industry-leading innovation and vi- sion" and added that the partnership will elevate the "student-athlete experience, enhancing fan engagement and expand- ing the reach of the Penn State brand." After the university's leadership ap- proved the pact, athletics director Pat- rick Kraft said in a prepared statement that Penn State's move wasn't just about bringing in a new supplier. "This partnership goes far beyond uniforms," he noted. "It is unlike any- thing else in the marketplace. [A]didas is making an unprecedented commitment to Penn State: delivering record invest- ment in our department, groundbreak- ing NIL and marketing opportunities, and access to technology and innovation that no other program can match. "This agreement sets a new industry standard, fueling championship perfor- mances, empowering our student-ath- letes to grow their personal brands, and creating unmatched platforms for them to shine on the national and global stage. Together, we're building something that will transform what's possible for Penn State Athletics and for every student- athlete who wears the Blue & White." That unprecedented commitment is grounded in money. With the program's Nike contract coming to a close, the Nittany Lions were in the market to entertain offers, and Adidas took a swing that was too big to ignore. Just as important was Adidas' willingness to engage with Penn State student-athletes to create NIL deals above and beyond the $20.5 million in- ternal funding cap created by this sum- mer's House settlement. Considering Penn State's place in a college athletics environment that has fundamentally changed over the past five years, the need for a deeper pool of resources is undeniable. There is context missing, though. And amid the end of a decades-long part- nership that made Nike's swoosh syn- onymous with Penn State, it demands elaboration. The simple truth is that Adidas out- bid Nike. The terms of the package also include a willingness by Adidas to create the "groundbreaking NIL and marketing opportunities" that Nike wouldn't. But the genesis of the partnership can be traced to the December 2024 an- nouncement that Nike was extending its deal with the NFL. Although financial terms were not released, that was as- suredly an expensive contract for the company. Fast-forward to late June, and a CNN report revealed that Nike forecast an additional $1 billion in costs as a result of new tariffs. Speaking on a call with analysts, the company's chief financial officer, Matthew Friend, described the tariffs as "a new and meaningful cost headwind." Combined with a decline in consumer spending, Nike is under pres- sure to lower its expenses. Adidas exists in the same volatile economic climate as Nike, but it doesn't have the same massive league-wide con- tracts as its rival. That has created an op- portunity for more targeted investments. Individual NFL player endorsements have included deals with Patrick Ma- homes, Amon-Ra St. Brown, Travis Hunter, Emeka Egbuka and Penn State's own Micah Parsons and Abdul Carter, among others. In addition, Adidas has been working to expand its college port- folio. A few weeks before landing Penn State, the company lured Tennessee away from Nike. That deal is also set to begin in July 2026. There are other factors that likely contributed in some small way to Penn State's decision. Nike has an inseparable relationship with Oregon, which is now a Big Ten rival. Also, PSU isn't as impor- tant to Nike as Ohio State and Michigan, or for that matter, Texas, Alabama and Georgia. The simmering resentment over the Nittany Lions' second-tier status might not have been enough by itself to bring about a change, but it didn't help. In the end, the calculation wasn't complicated. Penn State needs more, Adidas is willing to provide it, and in a world of ever-increasing financial de- mands, that simple exchange will define the next decade of PSU athletics. ■ James Franklin's team will have more NIL resources at its disposal thanks to the university's partnership with Adidas, which is set to begin next summer. PHOTO BY RYAN SNYDER O P I N I O N NATE BAUER NATE.BAUER@ON3.COM HOT READ Adidas Pact Is A Game-Changer For Penn State