Thursday, July 16, 2015

Michigan Thursday: Counts The Dollar Bills From Nike

Jim Hackett is the man.  After Sailboat Bill (who did a pretty good job until the end) and Dave "Big Top" Brandon it's nice that we have a temporary AD whose actions speaks louder then his words.  

Jim was able to get the shoe company that it's student athletes wanted (and many of the fans) and was able to get them to pay a record breaking amount with huge royalties. 

Per MLive:

According to contract details released by the Michigan athletic department, the university's deal with Nike is worth $169 million over 15 years, making it by far the richest of all apparel deals in collegiate athletics. The contract, which will supply all 31 U‐M athletic programs with uniforms, footwear, apparel and equipment, will pay $76.8 million in cash and $80.2 million in apparel.

Running from Aug. 1, 2016 through July 31, 2027, the deal comes with an option for Michigan to sign a four-year extension through 2031. Without the option years, U-M and Nike have agreed to an 11-year, $122.32 million deal, which includes $12 million upfront.

That $12 million payment will be followed by $10.1 million-$10.9 million annually in cash and apparel/equipment from 2016 through 2017

The contract option is for four years and worth $46.68 million.

Over the first 10 years of the deal, the deals will pay $4.82 million per year in cash before rising to $5.32 million the the 11th year and final year. From there, U-M will have the option to sign a four-year extension worth $5.82 million per season.

For apparel and products, Michigan will receive $5.3 million in the first year of the deal. The figure will be lowered to $4.7 million in year two and rise by $100,000 per year until reaching $5.6 million in year 11. The figure will will continue to rise by $100,000 in years 12-15, should U-M opt for the extension.

Those are record breaking numbers for a university and it's appeal contract.  It beats UA/ND and it beats Nike/Texas or Nike/FSU.    Michigan will also get 15% royalties from Nike when they were getting 10% from Adidas. 

Well Done Mr. Hackett you are having a very good run in the last 8 months or so! 

1 comment:

Scott Winar said...

I'm surprised he will not be our athletic director permanently, I am sure he could Hack it!!