12/18/2014 update: Matthew Kish has the story in the Portland Business Journal, here.
McElroy was hired from the Dallas Cowboys in May and charged with increasing the department’s revenue.
The Adidas deal does that. It’s worth $4.2 million annually through 2023, more than double the $2.1 million the university will receive from Nike this year.
That’s at Arizona State University. Nike’s contract with UO is far stingier – just $600K in cash. Doesn’t someone have a fiduciary responsibility to get a better deal on this?
12/9/2014 update: Which football championship team has the worst Nike contract? The Ducks.
Here’s a breakdown of Nike’s [athletic apparel] deal with each university in the playoffs. The terms cover the 2014-15 academic year [reordered in descending order of cash payment]:
- Ohio State: $2.5 million in equipment and apparel and nearly $1.5 million in cash. The university also gets $150,000 in discretionary apparel, typically for athletic department personnel.
- Florida State: $3 million in equipment and apparel and $1.4 million in cash.
- Alabama: $2.8 million in equipment and apparel, $780,000 in cash.
- Oregon: $2.2 million in equipment and apparel and $600,000 in cash. The university also gets $185,000 in discretionary apparel, typically for athletic department personnel.
But hey, we’re #1 in “discretionary apparel”!
From what I can tell from Dave Hubin’s redacted public records, $30K of that goes to our colleagues in Johnson Hall, presumably including some who signed off on the contract. So they’ll be looking good on their Jan 1 Rose Bowl junkets.
2/3/2014 update: Under Armour pays Notre Dame $9M, Nike pays UO $600K
Nike just signed Tennessee to a new deal for $1M cash a year, plus $2M signing bonus.
1/23/2014: Our Uncle Phil drives a tough bargain. Nike’s merchandising deal with UO pays us just $600K a year. Meanwhile Notre Dame just closed on a 10 year deal with Nike competitor Under Armour for ~$9M a year. Bloomberg financial news has a report here:
Adidas and Under Armour would love to get a marketing deal with the Ducks. Why won’t UO use this to negotiate with Nike for more money?
In part because a sweetheart deal for Nike is just part of the price the UO administration is willing to pay for the vague promise of $1B for the endowment, someday. It would pay off big in outside offers and raises for every admin involved. And perhaps also because Nike gives UO administrators $30K worth of free sneakers and clothes. Portland Business Journal reporter Matthew Kish has a thorough report on these deals, here.