Reported by Detroit Free Press’ Mark Snyder, U-M interim athletic director Jim Hackett confirmed Michigan’s 10-year deal with Nike – starting Aug. 1, 2016 – will be the largest payout in the nation.
Currently, U-M has al little more than one year left with its current deal with Adidas, which pays them $8.2 million annually.
In a video interview on Freep.com, Snyder asked Hackett: Was it is important that is was going to be the largest contract to you?
“Love that question, because it was never any stated goal of where we are ending up,” Hackett said. “The reason is, when we did our budget to run business it tends to be more conservative in the goals for that and everything above it was an advantage. We were in parallel for our budget for the year. Not knowing where the industry was, we have a really good agreement right now, one of the leading agreements. We valued at one level, and we out performed that.
“The second thing is the exposure to the firms you learn there is value in lots of ways.”
Then, well, Hackett discussed his research process, which involved talking to many prominent athletic directors around the country. And one particular AD comments on being part of the Nike brand stood out, as Hackett explains.
"'I just want to set your mind in the right context, this is one of the most valuable brands' – and he paused – 'in sports,'" Hackett told the Free Press. "'I'm talking about auto racing, golf, baseball, NFL, NBA -- the Michigan brand, Jim [Harbaugh], is one of the most valuable assets in sports.' So of course I had a lot of pride hearing that, but it really got me to think, 'What does the most valuable brand in sports deserve?'"
Apparently a lot, considering Notre Dame currently has the largest deal in the nation with Under Armour, a 10-year deal worth $90 million.
The financials of Michigan’s deal will not be released till July 13, per U-M spokesman, and there was reasoning behind that, Hackett says.
“We need a week to prepare about the news that is coming out,” Hackett told the Detroit Free Press. “So I am really proud of what that is going to look like. They just need a little time to talk to their people. They got to talk to their suppliers; their other customers abut the news they are going to see.”