OSU signs a new Nike deal 15 year/$252 Million

[dridenbaugh]

http://www.wsj.com/articles/nike-re...o-extend-sponsorship-at-ohio-state-1452811305

Nike Inc. has agreed to a $252 million deal with Ohio State University to extend its existing sponsorship by 15 years, escalating an arms race among sportswear makers and top sports schools.

Ohio State will receive $112 million in product from Nike and at least $103 million in cash, not including royalty income, according to terms of the contract reviewed by The Wall Street Journal.

The agreement, most of which will take effect with the 2018-2019 season, includes more than $41 million in commitments beyond the Buckeyes’ athletic department to include scholarships and internships for non-athletes at Ohio State.

In the past year, Nike has also signed a 15-year, $250 million renewal with the University of Texas at Austin and reached an 11-year, $169 million deal with the University of Michigan, Ohio State’s rival. Nike takes over the contract with the Wolverines after the school’s current deal with Adidas AG expires this year.

 

[anon_xdc8rmuek44eq]

http://www.wsj.com/articles/nike-re...o-extend-sponsorship-at-ohio-state-1452811305

Nike Inc. has agreed to a $252 million deal with Ohio State University to extend its existing sponsorship by 15 years, escalating an arms race among sportswear makers and top sports schools.

Ohio State will receive $112 million in product from Nike and at least $103 million in cash, not including royalty income, according to terms of the contract reviewed by The Wall Street Journal.

The agreement, most of which will take effect with the 2018-2019 season, includes more than $41 million in commitments beyond the Buckeyes’ athletic department to include scholarships and internships for non-athletes at Ohio State.

In the past year, Nike has also signed a 15-year, $250 million renewal with the University of Texas at Austin and reached an 11-year, $169 million deal with the University of Michigan, Ohio State’s rival. Nike takes over the contract with the Wolverines after the school’s current deal with Adidas AG expires this year.

I will say Michigan's Adidas uniforms were crap. I don't know what our current deal is, but my guess is Penn State will command a pretty good price when it comes time to renegotiate.

 

[massimoManca II]

I will say Michigan's Adidas uniforms were crap. I don't know what our current deal is, but my guess is Penn State will command a pretty good price when it comes time to renegotiate.

As someone who dabbles in C&U sponsorship agreements, I believe there is a greater-than 50% chance that PSU screws that up

 

[BobPSU92]

As someone who dabbles in C&U sponsorship agreements, I believe there is a greater-than 50% chance that PSU screws that up

Of course, because PSU screws up everything. Everything. Nothing is done right at PSU. Nothing.



The negativity when there is nothing to be negative about gets old.

 

[StinkStankStunk]

Nike Inc. has agreed to a $252 million deal with Ohio State University to extend its existing sponsorship by 15 years......
Ohio State will receive $112 million in product from Nike and at least $103 million in cash.

OK....so lets do some math:


$112 Million in "product" over 15 years......equals about $8 million per year.

Looking at all the varsity sports - men and woman - offered by OSU, and taking the maximum allowable scholarships (as per NCAA D1 Regulations).....OSU has a maximum of 389 Full Scholarship Student Athletes

Now, there are walk-ons...and some scholarships are divided up into partials.....so lets say there may be 700 or so folks actively participating in Intercollegiate Athletics at OSU. (FWIW, they list about 1,000 participants, but that includes all kinds of folks - like guys who come in to scrimmage the Women's basketball team, and stuff like that)

So...somewhere around 700 active intercollegiate athletics student-athletes, and $8 million per year in Nike gear =
$11,400 per year in Nike Gear????


How much Nike gear can a track and field athlete use? $11,400 per year? I don't think so
A baseball player? Swimmer?

OVER $10,000 per YEAR per PLAYER....over the entire OSU Athletic Department....on AVERAGE!!
Over their four year "education", the AVERAGE "student-athlete" receives "Nike Gear" valued at more than the cost of a new car.....a NICE car.....like a LEXUS NX, loaded up - with enough money left over to buy a "Barbour-sized TV".

And that is based on the "average".....what is the value of "Nike Gear" allocated....just as a for instance .....per FOOTBALL PLAYER?

This whole thing is freaking obscene.

 

[massimoManca II]

Of course, because PSU screws up everything. Everything. Nothing is done right at PSU. Nothing.



The negativity when there is nothing to be negative about gets old.

I've shared, on this board, how the university challenged a long-standing partnership, and later ended up settling for significantly less... So, yeah, the mechanism is there for them to screw it up

 

[Nitt1300]

"college football"

 

[BobPSU92]

OK....so lets do some math:


$112 Million in "product" over 15 years......equals about $8 million per year.

Looking at all the varsity sports - men and woman - offered by OSU, and taking the maximum allowable scholarships (as per NCAA D1 Regulations).....OSU has a maximum of 389 Full Scholarship Student Athletes

Now, there are walk-ons...and some scholarships are divided up into partials.....so lets say there may be 700 or so folks actively participating in Intercollegiate Athletics at OSU. (FWIW, they list about 1,000 participants, but that includes all kinds of folks - like guys who come in to scrimmage the Women's basketball team, and stuff like that)

So...somewhere around 700 active intercollegiate athletics student-athletes, and $8 million per year in Nike gear =
$11,400 per year in Nike Gear????


How much Nike gear can a track and field athlete use? $11,400 per year? I don't think so
A baseball player? Swimmer?

OVER $10,000 per YEAR per PLAYER....over the entire OSU Athletic Department....on AVERAGE!!
Over their four year "education", the AVERAGE "student-athlete" receives "Nike Gear" valued at more than the cost of a new car.....a NICE car.....like a LEXUS NX, loaded up - with enough money left over to buy a "Barbour-sized TV".

And that is based on the "average".....what is the value of "Nike Gear" allocated....just as a for instance .....per FOOTBALL PLAYER?

This whole thing is freaking obscene.

Look for Tosu's Nike gear on eBay in a few years. Tosu athletic supporters will throw all kinds of money at it.

 

[BobPSU92]

I've shared, on this board, how the university challenged a long-standing partnership, and later ended up settling for significantly less... So, yeah, the mechanism is there for them to screw it up

Let's worry about it when it happens. Meanwhile, PSU isn't negotiating a new contract with Nike.

 

[psu00]

Of course, because PSU screws up everything. Everything. Nothing is done right at PSU. Nothing.



The negativity when there is nothing to be negative about gets old.

Why all the negativity about the negativity discussing Penn State's potential negative negotiation? . If we can't show positivity about the negativity than what can we positive of?

 

[massimoManca II]

OK....so lets do some math:


$112 Million in "product" over 15 years......equals about $8 million per year.

Looking at all the varsity sports - men and woman - offered by OSU, and taking the maximum allowable scholarships (as per NCAA D1 Regulations).....OSU has a maximum of 389 Full Scholarship Student Athletes

Now, there are walk-ons...and some scholarships are divided up into partials.....so lets say there may be 700 or so folks actively participating in Intercollegiate Athletics at OSU. (FWIW, they list about 1,000 participants, but that includes all kinds of folks - like guys who come in to scrimmage the Women's basketball team, and stuff like that)

So...somewhere around 700 active intercollegiate athletics student-athletes, and $8 million per year in Nike gear =
$11,400 per year in Nike Gear????


How much Nike gear can a track and field athlete use? $11,400 per year? I don't think so
A baseball player? Swimmer?

OVER $10,000 per YEAR per PLAYER....over the entire OSU Athletic Department....on AVERAGE!!
Over their four year "education", the AVERAGE "student-athlete" receives "Nike Gear" valued at more than the cost of a new car.....a NICE car.....like a LEXUS NX, loaded up - with enough money left over to buy a "Barbour-sized TV".

And that is based on the "average".....what is the value of "Nike Gear" allocated....just as a for instance .....per FOOTBALL PLAYER?

This whole thing is freaking obscene.

Take a look at the sidelines-coaches, staff, auxiliary folks are perpetually decked out in those silly coordinated Nike outfits... "Product" likely goes beyond apparel/equipment and will often refer to advertising inventory and related promotional equity (overpriced venue signage, overpriced/inflated programming, sports camps, media support, sponsorship packages w/auxiliary events such as fundraising/golf tournaments/scholarships etc) ...

 

[91Joe95]

I've shared, on this board, how the university challenged a long-standing partnership, and later ended up settling for significantly less... So, yeah, the mechanism is there for them to screw it up

I remember that one. Ugh.

 

[Art]

Take a look at the sidelines-coaches, staff, auxiliary folks are perpetually decked out in those silly coordinated Nike outfits... "Product" likely goes beyond apparel/equipment and will often refer to advertising inventory and related promotional equity (overpriced venue signage, overpriced/inflated programming, sports camps, media support, sponsorship packages w/auxiliary events such as fundraising/golf tournaments/scholarships etc) ...

Good insight. Stuff like that can add up real fast.

Wonder if Nike shells out for equipment it doesn't manufacture. Pole vault poles easily go for $800 per and schools will have dozens of them. Football helmets: between $300-$1,000 (those shiny chrome domes) a piece and lots of schools have multiple sets.

 

[91Joe95]

I wonder how much the bot tarnished psu's brand. We already know several sites stopped selling PSU gear for a time. If you aren't an alum, would you still consider wearing PSU gear? Those can't be looked at as favorables by Nike.

 

[StinkStankStunk]

Look for Tosu's Nike gear on eBay in a few years. Tosu athletic supporters will throw all kinds of money at it.

^^^^^ BINGO!!! ^^^^^

Just like the "gold pants"! Still can't believe that was EVER legal......and still is.

NCAA is a complete joke (well...not any news with that proclamation )

 

[Nosoj]

OK....so lets do some math:


$112 Million in "product" over 15 years......equals about $8 million per year.

Looking at all the varsity sports - men and woman - offered by OSU, and taking the maximum allowable scholarships (as per NCAA D1 Regulations).....OSU has a maximum of 389 Full Scholarship Student Athletes

Now, there are walk-ons...and some scholarships are divided up into partials.....so lets say there may be 700 or so folks actively participating in Intercollegiate Athletics at OSU. (FWIW, they list about 1,000 participants, but that includes all kinds of folks - like guys who come in to scrimmage the Women's basketball team, and stuff like that)

So...somewhere around 700 active intercollegiate athletics student-athletes, and $8 million per year in Nike gear =
$11,400 per year in Nike Gear????


How much Nike gear can a track and field athlete use? $11,400 per year? I don't think so
A baseball player? Swimmer?

OVER $10,000 per YEAR per PLAYER....over the entire OSU Athletic Department....on AVERAGE!!
Over their four year "education", the AVERAGE "student-athlete" receives "Nike Gear" valued at more than the cost of a new car.....a NICE car.....like a LEXUS NX, loaded up - with enough money left over to buy a "Barbour-sized TV".

And that is based on the "average".....what is the value of "Nike Gear" allocated....just as a for instance .....per FOOTBALL PLAYER?

This whole thing is freaking obscene.

Some breakdown (not nearly to the extent you did) on the contract. Begining in 2018-2019, Nike pays $3.44 million in cash, increasing to $4.44 million in 2029-2030. They provide $5.6 million in apparel beginning 2018-2019 increasing to $7.0 million by 2032-2033.

• $20 million upfront
  
• Nike will also make a one-time payment of $2.5 million to the school's general scholarship fund to be used at Ohio State's discretion;
• Nike will make a $1 million contribution to Ohio State's Student Life endowment fund, to be made on or before Jan. 1 each contract year;
• Commencing with the extension period, Nike will provide 90 internships (six each year), two to student-athletes and four to other non-athlete undergraduates for the duration of the contract. Nike provides four internships to Texas as part of its deal, while Michigan has the luxury of three with its current agreement.

http://www.elevenwarriors.com/ohio-...with-nike-measures-up-to-michigan-texas-deals

 

[massimoManca II]

I remember that one. Ugh.

I remember that one. Ugh.

Good insight. Stuff like that can add up real fast.

Wonder if Nike shells out for equipment it doesn't manufacture. Pole vault poles easily go for $800 per and schools will have dozens of them. Football helmets: between $300-$1,000 (those shiny chrome domes) a piece and lots of schools have multiple sets.

As far as helmets, PSU once had a separate / exclusive helmet deal with Schutt, though that was thrown on the bonfire with the Soapy Scandal, not to mention Tommy Schutt flipping to tOSU (would love to know the real story there)... Schutt helmets are seen less and less as Riddell has really dialed things up with the new Speed and SpeedFlex models

 

[dclionsfan]

You take the money doesn't matter if it's Nike or not psu needs the money.