TEXAS REGENTS APPROVE RECORD $250 MILLION NIKE DEAL - LARGEST IN HISTORY

Texas made history Friday when regents approved a 15-year deal with Nike totaling nearly $250 million that includes a $15 million contribution from NBA star and Longhorns' ex Kevin Durant, whose "kd" brand could be coming to a UT athletics event near you.

UT president Greg Fenves called Texas' 15-year deal with Nike that will total nearly $250 million the largest collegiate apparel agreement of its kind. The summary of the terms of the agreement includes:

Sponsorship Element/Value

* NIKE up-front payment/signing bonus to Texas upon execution of the agreement

  VALUE: $20 million

* Total complimentary supplied product guarantee over 15-year term

  VALUE: $67,950,00 retail plus $1.5 million retail for use at AD discretion

* NIKE annual base compensation payment for sponsorship of NIKE-logoed apparel and equipment use

  VALUE: Total guaranteed: $6.5 million/year or $97.5 million over the term

* Annual compensation from NIKE is subject to an offset of equal amounts contributed by NIKE client Kevin Durant

  VALUE: $1 million per year and maximum $15 million over the term

* NIKE financial support of University initiatives outside of Athletics

  VALUE: $1.5 million  per year average and minimum $750,000 per year. Total: $22.5 million over the term.

* Creation of signature Kevin Durant-UT Austin line of performance products, apparel and footwear

  VALUE: Promotional connection with Durant, known as one of the world's three-best men's professional   basketball players

* NIKE-caused appearances by NIKE clients for UT Austin promotional/fund raising (Durant) and competition purposes (athletes to compete in open events at Texas Relays track and field events)

  VALUE: Fundraising/prospect enhancement and enhancement of competition field at four-day Texas Relays event (spectator and meet sponsorship positive impact). 

* Texas head coaches opportunity to make annual appearances at NIKE-sponsored coaching clinics

  VALUE: Texas head coaches' profile enhancement at Nike-sponsored events

* Equipment staff and managers provide feedback on NIKE performance appael, footwear, and equipment

  VALUE: Texas Athletics stays on the cutting edge of development of high performance product, equipment and technology.

When I asked if anyone in the UT athletic dept had violated Nike's exclusive negotiating period (through September) by engaging in talks with Under Armour or any other potential suitors, Mike Perrin said the parameters of Nike's exclusive negotiating period "were adhered to."

UT president Greg Fenves said, "We have no knowledge of that."

HornsDigest.com reported on Wednesday, according to sources, Under Armour was prepared to offer Texas $26 million per year for 10 years, commit two full-time representatives to Texas and place its college development offices in Austin.

Perrin declined to talk about a HornsDigest.com report that Texas teams - including football - would be wearing the "kd" brand (Kevin Durant) beginning next year.

"Kevin Durant has been an outstanding basketball player and representative of the University of Texas in every endeavour he's had, and we look forward to continuing a great relationship with him," Perrin said.

Fenves made a proposal for Texas athletics to continue its partnership with Nike (since 2000) for the next 15 years in an agreement that would pay Texas nearly $250 million (in cash, apparel and other benefits).

Regent Steve Hicks made a motion in favor of the proposal that was seconded by regent Sara Martinez Tucker.

Regent Wallace Hall expressed concern over the handling of negotiations regarding the apparel contract but did not specify those concerns.

Hall also expressed disappointment that other schools in the UT System weren't included in an opportunity to partner with Nike.

In a voice vote, the regents then voted - without objection - to authorize Fenves to finalize the Nike deal.


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