University of Texas, Auburn University Are Big-money Apparel Deals
A football game is a constant battle. Two teams duke it out for the most points. Off the field, football is still a battle, but with more than two teams, and the teams competing are the companies vying for immensely lucrative apparel deals. This week, two university football programs—Auburn University and the University of Texas—showed just how big the money in apparel deals can be.
The Texas Longhorns' apparel licensing deal with Nike ended yesterday, opening the door for major apparel companies, like Under Armour and Adidas, to make a new deal. Texas, being the most profitable college football programs in the nation, according to International Business Times, is a big target for these brands.
Bloomberg reported that the Texas deal could be worth more than $15 million annually. The university ended its deal with Reebok in 2000 in favor of a seven-year, $17 million contract with Nike. Nike and the university extended that contract three times until now, and Nike still has the contractual right to match any offer that Texas receives.
Under Armour has come up as a possible suitor for the Texas deal, and this wouldn't be its first major contract. The Maryland-based company signed a 10-year contract worth $9 million per year with the University of Notre Dame to outfit its team.
Under Armour also just extended its deal with Auburn University through 2025. The deal, worth $78.1 million over the next nine years at an average of $8.68 million per year, according to Al.com, is the third-largest apparel deal in the U.S., and the largest in the football powerhouse SEC Conference.
Auburn reportedly had reached out to other apparel brands, but settled on its previous supplier, after the end of a 10-year, $36.5 million contract. This new contract is more than twice that price.
Nike remains at the top of the apparel-deal pecking order, however, with its 10-year, $11.1 million-per-year deal with the University of Michigan, signed this year, but with more competition to outfit players, the iconic swoosh is far from the only emblem adorning football jerseys.