The University of Michigan announced this week that it signed a mega deal with Nike to the tune of $169 million. The deal, which will allow the sports brand exclusive rights to shoes and apparel, becomes effective in the fall of the 2016-2017 season and runs through 2027, with the option for an extension through 2031.
Specifics on the deal include $65.5 million in cash and $56.8 million in apparel and equipment, with another $46.6 million in cash and apparel and equipment over the four-year option.
Michigan's current deal with Adidas, which ends after the 2016 spring season, was one of the most lucrative and highest grossing among schools in the whole country. Interim athletic director Jim Hackett deliberated long and hard about the decision to end longtime relationship with Adidas and partner with Nike.
"After careful consideration, the right partner for the University of Michigan was Nike." he adds, "This decision is about more than Michigan athletics; at the core, it is about our University community and it is about two great names reuniting for an opportunity that speaks to more than uniforms and apparel.”
Fans will begin to see new products a year from now, with the first Michigan branded jersey from Nike to be released on August 1st of 2016.
Big things for Big Blue.