🏈 Alabama, Nike, and the apparel contract renewal coming up soon.

[TerryP]

At the beginning of the year Forbes put out a listing covering the rankings of the most successful/lucrative apparel deals with colleges. There's a few things of note in their latest recap, namely mention of Alabama.

Right now, the top 20 (1) are lead by UCLA and Louisville (Auburn coming in 9th, 1st in the SEC.)

Out of all 21 teams that made the list, UCLA’s contract with Under Armour came in first place, with an average annual value of $12.76 million, $9 million of which is calculated to be from cash paid to UCLA by Under Armour. This contract, which runs from 2017-2032, is the highest college apparel deal in history. Louisville’s Adidas contract, which came in second place in Forbes’ ranking, is worth $10.96 million.​

​

Several years ago the "in" thing was being a Nike sponsored school. With Under Armour now on the scene Nike is ranked second in terms of monies spent. (AU is a UA school.)

I have seen this conversation/questions pop up a few places over the last few days ... so, here's what Forbes reports that is something worth watching with Nike and Alabama these next few weeks. If you didn't know, Alabama isn't even in the top 20 currently.

There may be one more reason to expect that these contract values continue to rise, and the source comes in the form of a glaringly obvious omission from the ranking: Alabama.​

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Alabama has the most successful college football program of the modern era, and yet they don’t even crack the top 20 in apparel contracts. This should change very soon, as Alabama’s long-time deal with Nike, signed originally in 2002 and renewed in 2010, comes to an end in 2018.​

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It is incredibly likely that Alabama will not only replace UCLA as the top college on Forbes’ ranking, but also drive Nike ahead of Under Armour (assuming the school remains with the same company). Whichever apparel company manages to sign Alabama will certainly be a lucky winner, and could even change the game for how college apparel contracts are made for years to come.​

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What We Learned From Forbes' 'Top 20 Most Valuable College Apparel Deals' List​

 

[rammerjammer]

Good find......I know we have discussed this before on this board. I for one, am interested in seeing how this plays out.

 

[TerryP]

I for one, am interested in seeing how this plays out.

There's a part of me that wishes Battle was still AD and handling these negotiations. I don't know much about Byrne's record on things like this, but he's been a hit with fund-raising so there's a lot of hope.

There's a window of negotiations that Bama and Nike are in the midst of...sort of a first right of refusal clause in the last contract. I wonder how much progress has been made?

I'm betting Bama is a headliner for a few days with the contract amount.

 

[planomateo]

Nike's still way ahead of Adidas in North American sales, numbers from 2017 ~$15B vs ~$5B. But Adidas making up the ground, quarter sales is up 21% over previous quarter per the below link.

 

[planomateo]

Believe the existing deal is through June 30, 2018.

 

[50+yeartidefan]

O wow....then ticket amd TP cost will go down....
Thank goodness

 

[BamaFan334]

Under Armor is in shambles. The stock has become garbage. My two cents is they are making bad investments like the UCLA deal. Plank has created issues as well, but I stick to these major long term deals. Yes, they needed to make a splash in the college market outside of Maryland, but UCLA is not a football power and I'm willing to bet their apparel isn't flying off the shelves.

Alabama will stick with Nike. Two powerhouse brands and Nike knows we're the golden goose due to our ability to help them profit off the extra playoff revenue. Anyone know how to pull highest selling NCAA apparel? I have always worn Nike as a kid, so if we do in fact change I will not be buying Adidas, Under Armor, Reebok or anyone else for Alabama items.

 

[TUSKtimes]

There's always Russell Athletics.

 

[rammerjammer]

There's a part of me that wishes Battle was still AD and handling these negotiations. I don't know much about Byrne's record on things like this, but he's been a hit with fund-raising so there's a lot of hope.

There's a window of negotiations that Bama and Nike are in the midst of...sort of a first right of refusal clause in the last contract. I wonder how much progress has been made?

I'm betting Bama is a headliner for a few days with the contract amount.

Never dawned on me about Battle, but considering his background/business with licensing, you're spot on. If I'm Byrne, I would definitely lean on him for some advice. I know as the boss, you want to be a leader and show that you can do the job. All great leaders know how to use those around them and are typically wise to listen to counsel. Battle would be an excellent go to in this particular scenario.

 

[OldPlayer]

I for one, am interested in seeing how this plays out.

There's a part of me that wishes Battle was still AD and handling these negotiations. I don't know much about Byrne's record on things like this, but he's been a hit with fund-raising so there's a lot of hope.

There's a window of negotiations that Bama and Nike are in the midst of...sort of a first right of refusal clause in the last contract. I wonder how much progress has been made?

I'm betting Bama is a headliner for a few days with the contract amount.

Byrne, nor was Battle, isn't the only one at the negotiating table. Personally, I think the current Nike contract is/was too low. It wasn't near the top when signed. Based on Alabama's success not only in football but softball, golf, track, tennis and basketball (getting better), the next contract should be near the top. Alabama doesn't field as many teams as the PAC 12 or BIG10 schools (water polo, wrestling, equestrian, rugby (although not an NCAA sport), lacrosse, men's soccer, etc.) so I don't expect it to be the highest. It would be nice if they include the adapted athletics teams.

 

[TerryP]

Byrne, nor was Battle, isn't the only one at the negotiating table.

Oh! I'm well aware! DDA/CFO will certainly have his input. I'm sure you know my feelings about him.

I suspect Battle is involved to this day. When he "retired" but continue to carry the title of Special Assistant I hoped it would be a continuation of negotiations/etc. in place. Logical move, ya know?

Personally, I think the current Nike contract is/was too low. It wasn't near the top when signed. Based on Alabama's success not only in football but softball, golf, track, tennis and basketball (getting better), the next contract should be near the top. Alabama doesn't field as many teams as the PAC 12 or BIG10 schools (water polo, wrestling, equestrian, rugby (although not an NCAA sport), lacrosse, men's soccer, etc.) so I don't expect it to be the highest. It would be nice if they include the adapted athletics teams.

If you didn't scroll through, Nike holds the 3rd and 4th largest contracts out of the top five: Texas and Michigan respectively. In Nike's eyes, is the Alabama brand as big as those?

@BamaFan334 UA with UCLA and Notre Dame-5 (and the Domer are likely a good guess on Forbes part.) Wisky and Auburn are in the top 10 as well as UofSC for UA. Hell, out of those five they probably get as much exposure from ND than the three of the other four combined.

 

[TerryP]

@OldPlayer,

In Nike's eyes, is the Alabama brand as big as those?

BTW, I believe that answer is a resounding yes.

 

[UAgrad93]

@OldPlayer , I would agree on showing some love for our adapted athletics programs.

 

[Tidestalker]

UA and Adidas are junk....

Nike is the flagship. Who would prefer to wear anything else?! Looking forward to Bama re-upping

 

[planomateo]

Previous thread from 2016.

News - Predicting what Alabama's future apparel contract will look like.

May 2015 - UCLA/Under Armour - 15yr $280M
April 2016 - Cal/Under Armour - 10yr $86M
April 2016 - Michigan/Nike - 11yr $127M
January 2016 - Ohio State/Nike - 15yr $252M
October 2015 - Texas/Nike - 15yr $250M

 

[#80]

Time for Nike to shekel up.

 

[TUSKtimes]

UA and Adidas are junk....

At the rate that Adidas was buying off basketball players and coaches that might be the most sensible position. Stay as far away from the Capstone as possible.

 

[OldPlayer]

UA and Adidas are junk....

Nike is the flagship. Who would prefer to wear anything else?! Looking forward to Bama re-upping

I agree. UA sponsors Auburn. Who wants to be like Auburn? Adidas is a German company. Nothing against the Germans, but they know soccer, not American football. Alabama knows what they're doing, but a little Nike marketing input wouldn't hurt.

 

[BamaFan334]

Byrne, nor was Battle, isn't the only one at the negotiating table.

Oh! I'm well aware! DDA/CFO will certainly have his input. I'm sure you know my feelings about him.

I suspect Battle is involved to this day. When he "retired" but continue to carry the title of Special Assistant I hoped it would be a continuation of negotiations/etc. in place. Logical move, ya know?

Personally, I think the current Nike contract is/was too low. It wasn't near the top when signed. Based on Alabama's success not only in football but softball, golf, track, tennis and basketball (getting better), the next contract should be near the top. Alabama doesn't field as many teams as the PAC 12 or BIG10 schools (water polo, wrestling, equestrian, rugby (although not an NCAA sport), lacrosse, men's soccer, etc.) so I don't expect it to be the highest. It would be nice if they include the adapted athletics teams.

If you didn't scroll through, Nike holds the 3rd and 4th largest contracts out of the top five: Texas and Michigan respectively. In Nike's eyes, is the Alabama brand as big as those?

@BamaFan334 UA with UCLA and Notre Dame-5 (and the Domer are likely a good guess on Forbes part.) Wisky and Auburn are in the top 10 as well as UofSC for UA. Hell, out of those five they probably get as much exposure from ND than the three of the other four combined.

I stand corrected. I wouldn't have thought UCLA stood up to the Michigan's, Ohio State's, Notre Dame's, Alabama's, and Texas' of the world. Maybe it is in fact those extra sports that bring in more revenue.

 

[planomateo]

The problem I have with Forbes articles...

1. anti ad-blocker
2. they like making you click through the gallery