$WOOSH

Tempe, AZ – Nike and the Sun Devils have an ongoing relationship that has grown along with some progressive strategies to better market ASU’s brand.

“Swoosh” is the sound made when big dollars intersect with the lucrative business of college athletics. On a handshake agreement in 1964, University of Oregon track coach Bill Bowerman and runner Phil Knight decided to design and build a better shoe. Today, Nike is the world leader in athletic footwear, apparel, equipment and accessories.

Along with Nike, other top companies like Adidas and Under Armour sign multi-year, million dollar contracts with college athletic departments across the country to supply student-athletes. It has become such a big business, that the universities are estimated to have received around $250 million from apparel companies in 2013.

The University of Michigan currently has the largest contract among all schools with a total annual value of $4.4 million in equipment and apparel, with an additional $3.8 million in cash from Adidas. In the Pac-12 conference, UCLA’s total package with Adidas is $7.5 million, with an additional $650,000 if they win the National Championship. 

Surprisingly, Oregon’s current deal with Nike is only $2.8 million for equipment, apparel and cash. That amount seems low for the team that revolutionized the uniform craze and features a new color combination for every game, but these are the numbers on public record.

Some ASU football uniform combinations (Photo: ASU Athletics)

It’s important to note that boosters can help finance additional costs needed to create and develop new uniform designs, and that’s likely the case with Oregon.

When the Sun Devils unveiled their new “flame” design helmets for the Notre Dame game this season, it was a private booster that covered the expense. The contracts also have various clauses including the amount of tickets and sideline passes that are allocated for Nike and the Sun Devils. Some also state the number of “skill” position players (QB’s, running backs, receivers, etc.) that can tape over the logo on their shoes on game day.

Nike and the Sun Devils

ASU’s current contract with Nike expires this summer. The deal started on July 1, 2008 and ends on June 30, 2014. There is also a one year option to extend the deal at an increased equipment and apparel allowance amount of $1,600,000. Here are more details on the current contract between Nike and the Sun Devils:

• Equipment and apparel allowance $1,475,000 (Nike product supply package)

• Cash $350,000 (base compensation)

• Discretionary apparel allowance $150,000 (can be used to order additional product)

• BCS game bonus $15,000

• National Championship bonus $25,000

When you add it all up, the total annual contract value has the potential to reach $2,015,000. There are other interesting contract details. For instance if the Sun Devils make a bowl game, Nike sends ASU 100 pairs of new game cleats at no additional charge. Moving into 2014, the Sun Devil brand continues to grow with a big increase in merchandise sales and the recent success and exposure of the football program. As a result, when it’s time to sign the next big contract, the value will increase significantly for ASU.

ASU and Nike are teamed up through the summer of 2014, with an option to extend for one year

*Source: The Portland Business Journal