Michigan signs Apparel deal with Addidas....

[OSwho?]

July 10, 2007

U-M, adidas Sign Eight-Year Footwear and Apparel Deal

PORTLAND, Ore. / ANN ARBOR, Mich. -- The University of Michigan and adidas have entered into a multi-year agreement in which adidas will supply footwear and apparel for all 25 of the university's athletic teams. The new agreement begins with the 2008-09 academic year and extends through the 2016-17 season. The agreement is valued at $7.5 million annually in cash and merchandise over the eight-year period.

"We are excited and proud of our new collaboration with adidas," said U-M Athletic Director Bill Martin. "adidas will outfit our student-athletes and teams from head to toe, while providing additional resources for our athletic department. The quality of adidas' product and their dedication to service, on-site and to all of our teams, makes adidas a terrific partner for us."

Beginning in the fall of 2008, Michigan intercollegiate teams will be outfitted exclusively in adidas footwear, uniforms, training apparel and accessories. Michigan joins a select group of universities that have similar agreements with adidas, including Notre Dame, UCLA, Tennessee, Indiana, Nebraska and Wisconsin among others. adidas also has marketing agreements with the NFL, MLS and an 11-year exclusive all-league partnership with the NBA.

"The partnership between adidas and Michigan brings together two powerful brands that both stand for performance and excellence," stated Martyn Brewer, Head of US Sports Marketing for adidas. "Michigan is a marquee program and we are honored to add a university so rich in tradition to the adidas family of schools."

Michigan-adidas gear will arrive in stores next summer. Fans in Ann Arbor and across the nation will be able to purchase a wide range of products that include sideline gear, coaches' polo shirts, hats, jerseys, performance apparel and outerwear. Martin specifically pointed to adidas' agreement to provide on-site support and a pledge for unique sideline apparel as key factors in the agreement.

"We believe the new partnership is one of the strongest in college sports," added U-M Athletics chief financial officer Jason Winters. "Funding from the new agreement will provide added resources to our long term facility renewal plan."

The contract includes important provisions that reflect the commitment of both the University and adidas to labor and human rights issues. adidas' Social & Environmental Affairs team monitors contract factories for compliance with fair labor and sustainability codes of conduct in order to identify potential problems and implement positive changes. The adidas SEA team provides regular monitoring reports to adidas partner schools.

About adidas
Adidas is a global designer, developer and marketer of athletic footwear, apparel and accessories with the mission to be the leading sports brand in the world. Brand adidas is part of the adidas Group, a corporation that includes brands such as Reebok, TaylorMade and Rockport. For further information please visit adidas Press Room - Home.

Contacts: Abby Guyer (adidas Public Relations), (971) 234-2550
Bruce Madej (U-M Media Relations), (734) 763-4423



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[Sette]

That's a big deal to sign... I guess Nike didn't bring a competitive deal to the table.

[dayooper]

Originally Posted by OSwho?

The contract includes important provisions that reflect the commitment of both the University and adidas to labor and human rights issues. adidas' Social & Environmental Affairs team monitors contract factories for compliance with fair labor and sustainability codes of conduct in order to identify potential problems and implement positive changes. The adidas SEA team provides regular monitoring reports to adidas partner schools.



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The labor issue seems to be at play here a little? Or is it just window dressing?

[wadc45]

Correct me if I am wrong but isn't Michigan apparel the #1 seller across the country...if not, I'm sure UM is in the top 5. It just shocks me that NIKE would let a big fish like UM get away.

[OSwho?]

Originally Posted by wadc45

Correct me if I am wrong but isn't Michigan apparel the #1 seller across the country...if not, I'm sure UM is in the top 5. It just shocks me that NIKE would let a big fish like UM get away.

UM is usually in the top 3, some years they are #1, but I believe that Texas out-sold them last year and that UM was #2.

I'm sure Nike wanted to keep Michigan, but at the end of the day I'll bet that adidas was willing to offer Michigan more mula because they are probably desperate to eat at some of Nike's market share. Adidas only outfits a few NCAA teams, Nike pretty much outfits the rest of them.

[wadc45]

Maybe only a few but adidas is putting together a nice client list...

There collegiate partners include Indiana, NC State, Northwestern, Temple, UCLA, Alabama, Arkansas, Central Florida, Cincinnati, Houston, Idaho, Kansas, Louisville, UMass, Nebraska, Nevada, Notre Dame, Pitt, Tennessee and Wisconsin.

[OSwho?]

Hopefully adidas gets rid of the piping and diaper look that Nike introduced to the Michigan jerseys in 2005.

Come to think of it, I LOVE this move to adidas. I'm almost positive that adidas is giving UM more money, and at the same time I'm sure they'll go back to a more traditional look.

Nike by the way, IMO has completely ruined alot of programs uniforms. They should be banned from designing uniforms after the crap they keep pulling with Oregon.

[Sette]

I really hope they don't slap there logo all over our uniforms. That would result in my facial expression looking like the following on opening day.

[OSwho?]

they'll probably just replace the places the Nike logo is at with the adidas logo, that's all. As long as they get rid of the yellow piping with the diaper look, I'm good.

[OSUBucks22]

I was told that Adidas is giving UM almost twice as much as what Nike was offering...

[Sette]

UM is getting 40 Mil from this deal. Hopefully it goes towards basketball renovations.

[OSwho?]

Actually Sette, UM is getting 60 MIL from this deal according to CNBC.

Reading this guys article makes you realize just how great of a freaking deal this is for Michigan. Michigan signed their first contract with Nike 13 years ago, and it was worth $1-Million. LOL. Fast forward 13 years later and they are signing a $60-Million dollar deal.

CNBC link

Excerpt:
Here is how the Michigan deal sizes up with some other schools:

School Brand Time Value
ND Adidas 10 yr. $60 M
MICH Adidas 8 yr. $60 M
UNC Nike 8 yr. $28.34 M
Kansas Adidas 8 yr. $26.67 M
Auburn Under Armour 5 yr. $10.5 M
Va. Tech Nike 8 yr. $9.7 M

So basically UM is getting just as much money as ND got from adidas and the term is 2 years less. Also, we're getting twice as much from adidas as North Carolina is getting from Nike.


Sweet deal for Michigan if you ask me. Bill Martin is a shrewd dude.

[wadc45]

Mark Snyder's Blog: More on the Michigan-Adidas deal

July 11, 2007

This moment -- when Michigan would leave Nike -- was years in the making.

It just took a challenger to take on the giant and Adidas was more than willing.

Michigan and Nike publicly battled years ago over the last contract, so that may have made this separation more palatable on both sides.

In 2000, talks between Nike and U-M became heated and it took nearly a year to find a suitable contract.

Continued...