OT: Apparel Deals w Schools; who pays who? | The Boneyard

OT: Apparel Deals w Schools; who pays who?

Jetskies

Jetskies

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so this is just something that came in my head and i got confused thinking about the direction of the cash flow.

  • In NIL, school/school proxy pays a kid. got it
  • For uniforms/apparel, who pays who? Does UConn get paid or does it pay Nike? I can't imagine Ohio state or Bama pay a cent to anyone to get their gear. But for a MAC school or UMass, do they pay? it still costs Nike/adidas/UA/NB a non-trivial amount of money to supply all the gear, so I wonder what the threshold is, that determines who-pays-who...
I imagine there's 3 categories of where the deal ends up, each having its own contract between the school and the supplier:
  • supplier pays the school (cold hard $$$), and gets some marketing from the school by default (TV).
  • no money exchanged - gear provided "free", in exchange for brand exposure/marketing activities at the school & via television/media
  • school pays $$$ the supplier (maybe a little advertising for a discount)


thoughts on how this works in college?
(limited to FBS schools only; don't rly care about FCS/D2/D3)
 
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Typically they are a mix of cash and gear.

The press release and terms of one of UConn's previous Nike deals is found here.

It was a combined cash/gear deal worth a total of $32.45 million. In the deal the dollars were allocated to each team, but were inclusive of the coaches contract (i.e. if Geno has a Nike contract, the $1.285M cash to women's team listed is the total of Geno's deal and whatever extra cash would be contributed) and then $3.2M in gear.

2023-24 was apparently a one year extension worth $5.6M (source)
 
And the other hand, if I recall correctly, Rutgers "apparel deal" requires them to buy their uniforms.

(I think they pay retail plus an additional 10%)
 
ScottVib said:
Typically they are a mix of cash and gear.

The press release and terms of one of UConn's previous Nike deals is found here.

It was a combined cash/gear deal worth a total of $32.45 million. In the deal the dollars were allocated to each team, but were inclusive of the coaches contract (i.e. if Geno has a Nike contract, the $1.285M cash to women's team listed is the total of Geno's deal and whatever extra cash would be contributed) and then $3.2M in gear.

2023-24 was apparently a one year extension worth $5.6M (source)
Expand ...
thank you! this is interesting.

so if a brand like UConn gets free gear AND money, I do wonder what the threshold is for my latter two options. I can't imagine the entire FBS is able to get free gear and money, like say... jax state or Akron. maybe i'm wrong.

And if UConn gets this, i can't even imagine the contract between Nike and Oregon, or Nike/Jordan and Michigan.
 
CL82 said:
And the other hand, if I recall correctly, Rutgers "apparel deal" requires them to buy their uniforms.

(I think they pay retail plus an additional 10%)
Expand ...
wait what?
in exchange for what, would they pay retail + a premium...
what kinda deal is that....
 
Jetskies said:
wait what?
in exchange for what, would they pay retail + a premium...
what kinda deal is that....
Expand ...
The Rutgers kind?
IMG_1395.jpeg

Here's a link to the article that that quote comes from:
www.app.com

Rutgers sports no longer under contract with Adidas; is Nike deal next?

Rutgers basketball stars Ace Bailey and Dylan Harper have been wearing Nike sneakers all fall. Will the rest of the athletic department follow suit?
www.app.com
 
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Jetskies said:
so this is just something that came in my head and i got confused thinking about the direction of the cash flow.

  • In NIL, school/school proxy pays a kid. got it
  • For uniforms/apparel, who pays who? Does UConn get paid or does it pay Nike? I can't imagine Ohio state or Bama pay a cent to anyone to get their gear. But for a MAC school or UMass, do they pay? it still costs Nike/adidas/UA/NB a non-trivial amount of money to supply all the gear, so I wonder what the threshold is, that determines who-pays-who...
I imagine there's 3 categories of where the deal ends up, each having its own contract between the school and the supplier:
  • supplier pays the school (cold hard $$$), and gets some marketing from the school by default (TV).
  • no money exchanged - gear provided "free", in exchange for brand exposure/marketing activities at the school & via television/media
  • school pays $$$ the supplier (maybe a little advertising for a discount)


thoughts on how this works in college?
(limited to FBS schools only; don't rly care about FCS/D2/D3)
Expand ...

At CCSU, also a Nike school it is a combination of 2 and 3.

Central signs an agreement that Nike is the official and sole supplier of uniforms, etc. for Athletics. In return CCSU gets a fixed amount of FREE Nike apparel and equipment and then purchases additional items from a local distributor at a discount prices.
 
CCSU97 said:
At CCSU, also a Nike school it is a combination of 2 and 3.

Central signs an agreement that Nike is the official and sole supplier of uniforms, etc. for Athletics. In return CCSU gets a fixed amount of FREE Nike apparel and equipment and then purchases additional items from a local distributor at a discount prices.
Expand ...
hmmm very interesting. i would not have imagined CCSU would be able to get free gear, even partially. doesn't strike me like a worthwhile investment for Nike (no offense intended) - this was why I left FCS (and lower) schools out of my question, i assumed there was no way they'd get anything free, but looks like i'm wrong. I just don't see the value there for Nike and the other suppliers.
 
Jetskies said:
hmmm very interesting. i would not have imagined CCSU would be able to get free gear, even partially. doesn't strike me like a worthwhile investment for Nike (no offense intended) - this was why I left FCS (and lower) schools out of my question, i assumed there was no way they'd get anything free, but looks like i'm wrong. I just don't see the value there for Nike and the other suppliers.
Expand ...
The swoosh is the swoosh whether it’s on a CCSU shirt or a UConn one or a Michigan one. It is about keeping the brand out there.
 
Gets the swoosh in the school bookstore at retail prices, plus anything that makes air, even streaming is eyeballs on the logo. If anyone there did reach the pros you have an in with the kid. It’s a relatively low risk ad buy for Nike
 
ScottVib said:
Gets the swoosh in the school bookstore at retail prices, plus anything that makes air, even streaming is eyeballs on the logo. If anyone there did reach the pros you have an in with the kid. It’s a relatively low risk ad buy for Nike
Expand ...
That is true in many cases for lesser known schools. In Rutgers case however, a good part of the additional $2 million Rutgers paid Adidas was to allow Rutgers to display the logo. Adidas preferred the general public not knowing about their affiliation with Rutgers athletics.
 
FfldCntyFan said:
That is true in many cases for lesser known schools. In Rutgers case however, a good part of the additional $2 million Rutgers paid Adidas was to allow Rutgers to display the logo. Adidas preferred the general public not knowing about their affiliation with Rutgers athletics.
Expand ...
what?????
the more people talk about this the more ridiculous it sounds. i cannnnnnnot believe it lol

who PAYS to advertise someone else's brand?
and Rutgers is AAU?
 
Jetskies said:
what?????
the more people talk about this the more ridiculous it sounds. i cannnnnnnot believe it lol

who PAYS to advertise someone else's brand?
and Rutgers is AAU?
Expand ...

superman-missed-the-joke.gif
 
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