The University of Michigan athletic department released the numbers for its upcoming Nike apparel contract, and, boy, they are staggering. Michigan's Nike deal is an 11-year contract (2016-27) and worth $169 million. This equates to an average of $15.4 million per year, which is more than 70 percent more than the second-richest collegiate apparel contract in the nation (Notre Dame: $9 million per year with Under Armour). Wow.
And, according to ESPN's Darren Rovell, Nike was the lowest bidder for Michigan's apparel contract. The numbers could have been that much more staggering, but I think Michigan and its fans will be okay settling for the Swoosh while still having the largest apparel contract in college athletics.
Breaking down the $169 million, Michigan will receive $12 million upfront, $76.8 million in cash over the term of the deal, and $80.2 million in apparel.
Final thought: Jim Hackett, man. He can do no wrong.
Update: There was some misinformation. Michigan's Nike deal will be worth up to $169 million if Michigan exercises its four-year option in 2027. Therefore, the contract will be worth $122.3 million over 11 years and $169 million over 15 years. In addition, Michigan will receive a 15-percent royalty rate on apparel purchases, which, like the much of this deal, is the highest in the nation.