University of Michigan

Nike Signs Record Sponsorship Deal with University of Michigan by Alex Young

This college football season you may not recognize your favorite team thanks to the numerous switches regarding athletics sponsorship deals. Last year Notre Dame made headlines as it ended its partnership with adidas, moving to Under Armour for a $90 million 10 year deal. In January of 2015 the University of Miami announced it would leave Nike for adidas after building 27-years worth of heritage together, this move coming shortly after Nike lost its Arizona St. contract as well. These subsequent sponsorship transitions took away some of Nike's global reach, especially in such a big market like college football. adidas' collection of marquee sponsorships and Under Armour's ascension result in Nike needing a huge power play.

Tides shifted toward the Swoosh last week when the University of Michigan agreed to terms with Nike on a 2016 to 2027 deal. Financial terms were released yesterday and the sponsorship deal between Michigan and Nike is the most lucrative in college sports, seeing Michigan make $76.8 million in cash payouts, $80.2 million in equipment, and a $12 million signing bonus. The $169 million endorsement deal also has a four-year extension including an increased per-year payment. Michigan has remained one of the biggest names in sport since its previous 1994-2007 stint with the Swoosh, new product, new coach, and new market makes the two a match again. Beginning on August 1, 2016 Wolverines football and baseball teams will wear Nike; basketball teams will wear Jordan Brand. Read more details on the deal here.