It appears the relationship between Adidas and the Nebraska athletic department will continue.
And the deal stands to give NU a big financial boost.
According to the agenda for the Aug. 11 meeting, the Nebraska Board of Regents will be asked to approve an 11-year agreement with the apparel giant that will pay the university nearly $129 million.
A message to the NU athletic department seeking comment on the potential deal was not returned.
According to the agenda’s explanation of the possible agreement, Adidas would pay Nebraska $64 million in cash and provide $64.7 million in athletic apparel and equipment for a total of $128.7 million.
The explanation says the new deal would approximately triple Nebraska’s current contract with the company. The parties agreed to an eight-year deal in 2005 worth $22.875 million and agreed to a five-year extension worth $15.53 million in March 2013.
Nebraska and Adidas have had a relationship since 1995.
“While the proposed 11-year deal is a notably long commitment,” the explanation said, “it is more than reasonable, given the significant contract value.”
You have free articles remaining.
The deal would also provide two “look-in” periods in the fourth and seventh years of the contract, which would allow each side to adjust the contract to “reflect market value in such a manner that UNL retains its status as an elite Adidas university program. If the 'look-in' reveals Nebraska is not an elite Adidas program, the university may terminate the agreement.”
If approved, the new contract would be effective retroactive to July 1 and run through 2028. The agreement would also replace the last year of the current contract, which is set to expire June 30, 2018.
To compare, the increase would go from $1 million to $3.5 million in cash, and from $3.4 million to $5.05 million in product for the 2017-18 athletic year.
The agreement also includes a sponsorship agreement for Adidas in which the apparel company will receive major signage and other forms of sponsorship.
Other programs that have signed with Adidas include Kansas, Indiana, Texas A&M, Miami, Arizona State, Louisville, Mississippi State and North Carolina State.
Large apparel sponsor contracts are the norm throughout the college landscape. UCLA and Under Armour agreed in 2016 to the largest apparel contract in college sports — $280 million for 15 years.
Nike has three of the top five largest contracts — Ohio State (15 years, $252 million), Texas (15 years, $250 million) and Michigan (11 years, $169 million a year).
Nebraska's deal puts it third in the Big Ten among contracts known to the public, behind Ohio State and Michigan. Northwestern is a private school and is not required to release its contracts, and Penn State is exempt from complying with Pennsylvania's freedom of information law.