Adidas (ADDYY) has signed a 10-year extension to remain the official footwear & apparel provider of University of Louisville athletics. The deal, worth $160 million, gives Louisville the 4th richest apparel agreement in college sports. The University will receive $10 million/year in base compensation between 2018-2021 and then $7 million/year through 2028, a significant increase from $1.575 million they will receive for the 2017-2018 academic year.
Howie Long-Short: Considering UCLA got $280 million over 15 years from Under Armour (UAA), ADDYY got good value on the deal. But, in 2013-2014, Louisville finished 24th in merchandise sales. That doesn’t seem to warrant the 4th largest deal in college athletics. Sounds like both sides got a good deal.
Fan Marino: The next school to get a massive payout? The University of Washington. Their contract with Nike (NKE) expires in 2019. Oregon, Oregon State and Washington State are all under NKE contracts through at least 2025. Under Armour and Adidas want to expand their footprint to the Pacific NW. A bidding war is coming.