Nike and Illinois agree to 10-year extension through 2025-2026

#1      

Dan

Dan
Admin
Dan
#illini associate AD Marty Kaufmann tells me Nike deal is a 10-year, $44 million deal. Top-20 deal in country.

New #illlini-Nike deal is 10 years, $44 million all in apparel. The last deal was 10 years, $1.2 mil annually in apparel, $325K cash annual

https://twitter.com/JWernerScout
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The University of Illinois Division of Intercollegiate Athletics (DIA) and Nike have extended their two-decade-old relationship for the foreseeable future as Nike will continue to be the footwear, apparel and equipment provider for the 21 Fighting Illini varsity sports. Nike has been the exclusive footwear and apparel provider for the DIA for 20 years with this 10-year agreement extending the relationship through the 2025-26 academic year.

http://www.fightingillini.com/news/2016/1/15/GEN_0115160058.aspx
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#2      

Smacko

S
Lexington, KY
Smacko
10 years is not ideal. Highly likely that revenue is up in 10 years and we are locked into a contract that is well below market value. 3-5 years would have been ideal. That this got done without the new AD being in place as well is also suspect.
 
#3      

TheBucket

T
TheBucket
Smacko said:
10 years is not ideal. Highly likely that revenue is up in 10 years and we are locked into a contract that is well below market value. 3-5 years would have been ideal. That this got done without the new AD being in place as well is also suspect.
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Maybe I'm thinking about this incorrectly, but wouldn't having a deal that is under market value 5 years from now be a good thing? We would be paying less to Nike?

I guess I am just unfamiliar with these partnerships. Is Nike providing Illinois with free gear based on how much revenue they produce for Nike?
 
#4      

Smacko

S
Lexington, KY
Smacko
TheBucket said:
Maybe I'm thinking about this incorrectly, but wouldn't having a deal that is under market value 5 years from now be a good thing? We would be paying less to Nike?

I guess I am just unfamiliar with these partnerships. Is Nike providing Illinois with free gear based on how much revenue they produce for Nike?
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Nike is paying us, so no. Nike provides uniforms and whatnot and in exchange they are given the rights to sell Illinois related merchandise.
 
#5      

TheBucket

T
TheBucket
Smacko said:
Nike is paying us, so no. Nike provides uniforms and whatnot and in exchange they are given the rights to sell Illinois related merchandise.
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Got it, thanks. Then yes... very questionable that this got finalized under an interim AD.
 
#6      

DrewD007

DrewD007
Woodridge, IL
DrewD007
Ohio State just did a 15 year deal with Nike, granted they're getting $250 million over the course of the contract.
 
#7      

DrewD007

DrewD007
Woodridge, IL
DrewD007
DudeAbides said:
Does anyone know the value of this extension? Or has that not been released yet?

Michigan just got a whole cargo ship full of cash in their last deal. Curious to see how we stack up.
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$44 million.
 
#8      

Dan

Dan
Admin
Dan
#illini associate AD Marty Kaufmann tells me Nike deal is a 10-year, $44 million deal. Top-20 deal in country.

New #illlini-Nike deal is 10 years, $44 million all in apparel. The last deal was 10 years, $1.2 mil annually in apparel, $325K cash annual

https://twitter.com/JWernerScout
Click to expand...
 
#9      

Dan

Dan
Admin
Dan
"It was really important to keep the relationship with Nike," Kaufmann said. "This goes back to almost two years ago when our decision was made, and with the support of our campus, to stay with Nike. Our coaches were happy with the product. It felt they helped them in recruiting. The greatest challenge was making sure we were able to get that done and working with Nike. I think Nike gave us a deal where we are both very pleased with the terms."

http://www.news-gazette.com/sports/...l/2016-01-19/illini-nike-agree-extension.html
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#10      

Epsilon

Epsilon
M tipping over
Pdx
Epsilon
"The contract includes a stipulation that Nike will never ever ever ever make the Illini wear pink camo."
That's my favorite part of the contract.
 
#11      

Smacko

S
Lexington, KY
Smacko
Apparently most of this contract was finalized under Thomas, it just hadn't been signed yet.
 
#12      

MA Illini

M
Mass
MA Illini
#13      

ILL in IA

ILL in IA
Iowa City
ILL in IA
Curious on how exclusive this is for the new marks they set up during the rebrand. I ask because living in Iowa City, I see a ton of Iowa (nike school) on Under Armour products.
 
#14      

mdkIllini15

mdkIllini15
mdkIllini15
ILL in IA said:
Curious on how exclusive this is for the new marks they set up during the rebrand. I ask because living in Iowa City, I see a ton of Iowa (nike school) on Under Armour products.
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I believe the new logos, fonts, etc. become property of the university of illinois and not nike at the end of this current contract. I would have a hard time believing they'd give that up in this new one
 
#16      

ILLINIShox24

ILLINIShox24
Orange Krush '04 & '05
ILLINIShox24
For comparison, Michigan State signed a 10-year, $34 million deal with Nike last year.

^^^ Per Werner's Twitter.

Also, Under Armour's recent agreement with Wisconsin was 10yr $96M. UA breaking into the market.
 
#17      

ILL_INI

ILL_INI
ILL_INI
Smacko said:
10 years is not ideal. Highly likely that revenue is up in 10 years and we are locked into a contract that is well below market value. 3-5 years would have been ideal. That this got done without the new AD being in place as well is also suspect.
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Smacko said:
Nike is paying us, so no. Nike provides uniforms and whatnot and in exchange they are given the rights to sell Illinois related merchandise.
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Is Nike really paying out any cash, or is it just uniforms and equipment? If so, how much of the agreement is cash?

I think the licensing agreements are completely separate.
 
#20      

DrewD007

DrewD007
Woodridge, IL
DrewD007
One thing to point out, even though we aren't getting cash, apparently what money we were getting from Nike under the previous deal was going to buy apparel from them anyways.
 
#21      

WesterveltVictoryCigar

WesterveltVictoryCigar
WesterveltVictoryCigar
IlliniJim20 said:
Werner seems to contradict himself. On the front page his tweet says $325k cash annually, but this tweet says no cash.

Clarification anyone ?
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$325K was the old deal. Apparently we were spending an extra $500K/year to buy what we needed, so they went to getting more gear instead of cash. And there is an option to get some cash back if we don't spend as much as we think we will.
 
#22      

Fillory

F
4th Floor Grainger
Fillory
ILLINIShox24 said:
For comparison, Michigan State signed a 10-year, $34 million deal with Nike last year.

^^^ Per Werner's Twitter.

Also, Under Armour's recent agreement with Wisconsin was 10yr $96M. UA breaking into the market.
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I just haven't seen enough creativity out of Under Armour (and literally no creativity out of Adidas) to make me want the school to leave Nike.
 
#23      

Illinnoying Orange

Illinnoying Orange
Illinnoying Orange
Fillory said:
I just haven't seen enough creativity out of Under Armour (and literally no creativity out of Adidas) to make me want the school to leave Nike.
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These contracts are about $$$ not creativity. Most of the newer, gaudy uniforms around the country use very similar design schemes and lack creativity regardless of which company is designing them. But in terms of creativity, a Under Armour outdid everyone when they unveiled the Navy hand painted helmets this season.
 
#24      

Fillory

F
4th Floor Grainger
Fillory
Illinnoying Orange said:
These contracts are about $$$ not creativity. Most of the newer, gaudy uniforms around the country use very similar design schemes and lack creativity regardless of which company is designing them. But in terms of creativity, a Under Armour outdid everyone when they unveiled the Navy hand painted helmets this season.
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But we know Nike does the flashy uniforms because recruits love them.

And the fact is, our unis look a lot better than they did 5 years ago. The slant Illinois helmet was laughable and dated.
 
#25      

CIIF

CIIF
Edwardsville
CIIF
Should we have waited until we had our permanent AD in placed to negotiate this contract?