University of Florida & Nike Extend Contract
The Business Journal has reported that University of Florida has extended Nike’s contract to be its official athletic supplier until 2024.
The parties extended the deal in September. The Business Journal obtained a copy of the extension this week through a public records request. The previous deal would have expired in 2017.
The new deal provides the university $3.1 million in Nike product this academic year, one of the highest product allowances in the country and up from the $2.1 million it was previously due. The increase is significant because it signals that Nike is willing to write bigger checks to keep key programs.
While Nike is the dominant player, Adidas and Under Armour have been willing to pay top dollar to snag high-profile programs.
Unlike many universities, Florida opts for a higher equipment allowance instead of any cash compensation.
The extension means Nike has long-term contracts with two of the most visible programs in Florida. It also has a contract with Florida State that runs until 2023.
Florida’s extension might have played a role in the bidding frenzy to become the University of Miami’s new athletic supplier. Last week Adidas announced it had won the right to become the school’s official provider, seemingly outbidding Under Armour.