Earlier this month, the University of Michigan announced their partnership with Nike that will have all of their varsity sports teams outfitted in The Swoosh beginning in 2016 and continuing through 2027. The hoops team will be decked out in Jordan Brand.
“After careful consideration, the right partner for the University of Michigan was Nike,” Jim Hackett, Michigan’s interim athletic director, said in a statement. “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.”
According to ESPN’s Darren Rovell:
The cash and equipment part of the deal over the guaranteed 11 years is worth $122.3 million — $65.5 million in cash and $56.8 million in apparel and equipment, with another $46.6 million in cash and apparel and equipment over the four-year option.
Michigan has the option to extend the deal for another four years after 2027, which would work out to an average of $11.26 million per year, including $8.2 million a year in cash and equipment.
The next highest commitment per year in cash that Nike has with any other school is Florida State, which pulls in $4.4 million in cash and equipment per year. Big Blue’s deal is two and a half times that amount.
“There’s no question, whether you like Nike or Adidas product, that a lot of fans can’t separate the fact that we won a lot more football games when we wore Nike,” said Scott Hirth, co-owner of The M-Den, the Ann Arbor-based official merchandise retailer of the school.
“After careful consideration, the right partner for the University of Michigan was Nike,” interim athletic director Jim Hackett said in a statement. “This decision 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.”
Furthermore, Nike will pay UM a 15% royalty on the gross price of gear sold at retail throughout the duration contract, with a minimum payout over the 11 years being $18.37 million.
Even with all of these massive numbers, Nike was actually the lowest bidder- but Michigan chose them over competitors like Under Armour and Adidas.