UM-Nike deal more valuable than anticipated at $173.8M
Michigan’s contract with Nike, announced last July, finally has been completed and signed and is valued slightly higher than former interim athletic director Jim Hackett, who brokered the deal, had originally revealed.
It is not unusual for such a delay in signing an apparel contract because of all the legal machinations. The contract, obtained by The Detroit News through an open-records request, was finalized and signed by new Michigan athletic director Warde Manuel and several Nike executives on March 16, 2016.
Michigan’s Nike deal launches Aug. 1 and it will pay the university at least $173.8 million through 2031, if Michigan opts to extend the contract beyond 2026-27.
Last July, Michigan presented a term sheet with Nike indicating the deal would be worth $169 million. Hackett had considered proposals from Under Armour and also from Adidas, with which Michigan had a contract in recent years.
In the signed contract, Michigan will be paid $85 million in Nike apparel through the extended contract, $76.8 in total annual compensation. Also, Michigan will receive a $12 million payment within 10 days of the executed agreement.
Basic product allotments for all fall sports, excluding uniforms, will be delivered by July 1, according to the contract. All fall sports uniforms, including football, will arrive Aug. 1, and basketball uniforms will arrive Oct. 1.
The Michigan football team will be the first to wear the Nike Jordan “Jumpman” brand. The men’s and women’s basketball teams also will wear Jumpman.
Nike will pay Michigan coaches the following performance bonuses for these accomplishments:
Wins national title: $100,000
Plays in national championship game: $50,000
Plays in College Football Playoff semifinal: $25,000
Wins Big Ten championship game: $20,000
Plays in Big Ten championship game: $10,000
Wins national title: $25,000
Wins conference championship: $10,000
Top-five ranking (final AP or coaches’ poll): $3,500
Season winning percentage of .950 or higher: $3,500
Wins national title: $7,500
Wins conference championship: $5,000
Top-five ranking (final AP or coaches’ poll): $3,000
Season winning percentage of .950 or higher: $3,000
Here is a complete copy of the contract: