The University of Louisville in October signed a giant five-year extension withAdidas that will net the school more than $35 million in cash and benefits.
It's the latest salvo in the ongoing battle between sneaker companies to partner with top athletic departments.
The deal was announced in April but not signed until Oct. 30, according to a copy of the contract the Business Journal obtained last week through a public records request. It's unclear why the university announced the deal before it was finalized.
The deal will provide the university roughly $1.5 million in cash annually in return for the right to outfit the university's varsity athletic teams. The university also will receive an annual allowance of Adidas equipment, starting at $3.7 million in the current year, a big raise from the $2.2 million the university was owed before extending the deal. The university also gets an annual "activation investment" of around $500,000.
The nearly $5.7 million the university will receive this year ranks No. 4 of the university apparel deals in the Portland Business Journal's database of contracts.
The cash and equipment allowances increase annually. The university will get nearly $1.6 million in cash and $5.5 million in equipment the final year of the deal.
Nike, Adidas and Under Armour continue to fiercely compete for partnerships with top athletic departments. The companies covet the deals because of the exposure to loyal fans and the ability to sell numerous types of products.
While Nike is the dominant player, willing to pay top dollar to snag high-profile programs.
Adidas recently announced big-dollar deals with the outfit the University of Cincinnati.
Nike recently extended its deal with the University of Florida and increased the annual equipment allotment by $1 million in order to extend the deal to 2024, seemingly part of a strategy to continue partnerships with key universities.
Terms
It's the latest salvo in the ongoing battle between sneaker companies to partner with top athletic departments.
The deal was announced in April but not signed until Oct. 30, according to a copy of the contract the Business Journal obtained last week through a public records request. It's unclear why the university announced the deal before it was finalized.
The deal will provide the university roughly $1.5 million in cash annually in return for the right to outfit the university's varsity athletic teams. The university also will receive an annual allowance of Adidas equipment, starting at $3.7 million in the current year, a big raise from the $2.2 million the university was owed before extending the deal. The university also gets an annual "activation investment" of around $500,000.
The nearly $5.7 million the university will receive this year ranks No. 4 of the university apparel deals in the Portland Business Journal's database of contracts.
The cash and equipment allowances increase annually. The university will get nearly $1.6 million in cash and $5.5 million in equipment the final year of the deal.
Nike, Adidas and Under Armour continue to fiercely compete for partnerships with top athletic departments. The companies covet the deals because of the exposure to loyal fans and the ability to sell numerous types of products.
While Nike is the dominant player, willing to pay top dollar to snag high-profile programs.
Adidas recently announced big-dollar deals with the outfit the University of Cincinnati.
Nike recently extended its deal with the University of Florida and increased the annual equipment allotment by $1 million in order to extend the deal to 2024, seemingly part of a strategy to continue partnerships with key universities.
Terms
