The Wolverine: Covering University of Michigan Football and Sports
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INSIDE MICHIGAN ATHLETICS the length of the deal, plus $80.2 mil- lion in apparel for the 27 Wolverine varsity squads. Furthermore, Michigan's men's and women's basketball teams will use Michael Jordan's Jumpman brand, which is an elite part of Nike. The deal also includes three summer intern- ships for Michigan students at Nike's headquarters in Beaverton, Ore. "After careful consideration, the right partner for the University of Michigan was Nike," Hackett said. "This decision, this partnership is about more than Michigan athletics; at the core, it is about our University community and it is about two great names reuniting for an opportunity that speaks to more than uniforms and apparel." Of note: Nike has been the apparel sponsor for 14 of the past 15 college football champions. All told, the deal averages out to $11.2 million per year. Notre Dame had boasted the largest deal previ- ously, a 10-year, $90 million part- nership with Under Armour, while Nike's previous high deal was with Florida State for a reported $4.4 mil- lion per year. Michigan's cash payout by Nike begins at $4.82 million in year one, which begins next August follow- ing a final year with adidas. It rises to $5.32 million in the 11th year, at which time Michigan can opt out of the contract should it so choose. Nike will supply $5.3 million worth of gear in the initial year, and then drop it to $4.7 million the second year. The number will rise $100,000 in each year thereafter. Collegiate Licensing Company earns 15 percent of net sales, includ- ing a minimum of $1.837 million per year. U-M finished third among CLC schools in sales during 2014, behind only Alabama and Texas. Michigan will also retain the right to conduct third-party agreements with suppliers, provided they do not include anything from adidas, Under Armour, Reebok and Puma. Ten U-M sports require equipment outside the contract. Hackett noted in a recent meet- ing with reporters that it was "very close" between Nike, adidas and Under Armour. He also said an un- named athletic director told him Michigan represented one of the larg- est brands in the sports world. "One of the very notable athletic directors in the country said, 'I just want to set your mind in the right context — this is one of the most valuable brands,' and he paused, 'in sports,'" Hackett said. "And I waited, and he said, 'I'm talking about auto racing, golf, baseball, NFL, NBA — the Michigan brand, Jim, is one of the most valuable assets in sports.' "I had a lot of pride in hearing that, but it really got me to think in terms of what does the most valuable brand in sport deserve in a partnership?" Hackett also noted Harbaugh gave his opinion in his second day on campus, and it was Nike. In the end, Hackett agreed and signed an historic deal … but said he was unable to relax until everyone else involved had, too.