Swoosh U

Swoosh U


The UI's athletic department will unveil the results of a more than year-long “rebranding” process on Wednesday, April 16, in the Foellinger Great Hall in the Krannert Center for the Performing Arts. Here are the highlights of the UI’s agreement with Nike:

 

CONTRACT

— Runs from: July 1, 2006 — June 30, 2015

— The UI had a 10-year agreement with the company prior to the current contract, making this the UI’s 18th year with Nike.

— Negotiations haven’t started on a new contract yet. Chancellor Phyllis Wise, who sits on the Nike board, has said she will not be involved in any negotiations for a new contract.

 

EXCLUSIVITY

— The contract calls for Nike to be “the exclusive supplier of the athletic footwear, apparel and accessory products” of Illinois varsity sports.

— Among the various rules outlined in the contract: Coaches are required to wear and use exclusively Nike products during practice, games, exhibitions, clinics, sport camps, celebrations, etc.

“In the event any team member is unable to wear Nike footwear due to a bona fide medical condition as evidenced by a certification by the team’s physician, then such team member shall be permitted to wear non-Nike footwear provided all visible manufacturer’s identification is taped over and otherwise covered or otherwise covered so as to completely obscure such manufacturer’s identification.

Wearing non-Nike nonathletic shoes is OK.

 

COMPENSATION

Nike’s annual cash payment to UI: $325,000. That’s before bonuses:

— Nike paid the UI a one-time “commitment” bonus of $500,000 after the contract was signed.

— Nike will pay the UI extra if the football team advances to a BCS game ($25,000) and if men’s or women’s basketball team advances to the Final Four ($25,000 for men; $10,000 for women).

 

GEAR

— This school year, the UI can order up to $1.2 million in Nike product (shoes, uniforms, hats, undergarments, etc.).

— The UI can receive additional product if, for example, the football team competes in a bowl game.

 

ROYALTIES

The UI’s licensing agent grants to Nike a retail license, which gives the company rights to sell a variety of products. Nike’s royalty rate of 10 percent, the same rate others pay.

 

PERKS

Under terms of its contract with the UI, Nike receives:

— Season tickets: 8 for football (between the 30-yard lines); 8 for men’s basketball; 4 for women’s basketball; and 4 for other ticketed sports programs.

— 12 men’s and women’s basketball tournament tickets: for the Big Ten tourney and the NCAA or NIT.

— 12 tickets to any football bowl game the Illini appear in.

— 50 tickets to one football game.

— 25 tickets to one men’s basketball game.

— 4 parking passes at football and basketball games.

— The opportunity to hold pregame, halftime or postgame promotional events around Memorial Stadium.

— Signs placed around various venues, such as on scoreboards and in programs and media guides.

CHRISTINE DES GARENNES

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