Nike Currently Gives $130,000 to RU for Uniform Contract

[Knight Shift]

That is putrid. Lots of other good info in the linked article.
http://www.app.com/story/sports/col...s-new-traditional-football-uniforms/83531332/

Rutgers athletics is wrapping up its fourth year of a five-year apparel contract with Nike worth $5.2 million with a $130,000 base payment to the school. The next contract is expected to go out to bid and be worth significantly more now that Rutgers is a member of the Big Ten.

Call just made a deal with UA that will pay Cal $86 Million.
http://bleacherreport.com/articles/...fornia-under-armour-agree-to-apparel-contract

UA is paying Yale (Yea, Yale) $16.5 Million over 10 years
http://www.bloomberg.com/news/artic...s-paying-big-ten-money-to-sponsor-yale-sports

South Carolina's UA deal is $24.5 million in rights fees and $44.5 million in product allowance, plus a $2 million signing bonus.
http://www.thestate.com/sports/coll...c-football/article61328227.html#storylink=cpy

 

[RUBlackout]

You have to realize our deal was out in place while we were in the AAC....I expect we are going to get a huge payday when we renegotiate

 

[daneman100]

Yeah, that is not good. I have faith that Hobbs will get a far superior deal.

 

[Scarlet_Scourge]

clearly we were just a Big East school at the time with no Big Ten offer.

The next deal should be much larger.

 

[Plum Street]

Would people like us to stay with Nike ?
I think whatever the recruits like and gives us the best deal . I still think Nike is the standard and more popular with hs kids, but maybe it's another brand .

 

[DNA22]

My prediction- 10 years $30 mil

 

[greenknight]

The money from the next contract should be real nice boost

 

[greenknight]

On these contracts do we get any royalties from from Nike apparel sold or is that in the contract $$$ then Nike gets all the profits from apparel sales

 

[greenknight]

From the Nike uniform video I guess we will see how much Nike LOVES Rutgers

 

[satnom]

Prediction: the more RU wins the more RU gets at market next contract.

GO RU

 

[Leonard23]

That is putrid. Lots of other good info in the linked article.
http://www.app.com/story/sports/col...s-new-traditional-football-uniforms/83531332/

Rutgers athletics is wrapping up its fourth year of a five-year apparel contract with Nike worth $5.2 million with a $130,000 base payment to the school. The next contract is expected to go out to bid and be worth significantly more now that Rutgers is a member of the Big Ten.

Call just made a deal with UA that will pay Cal $86 Million.
http://bleacherreport.com/articles/...fornia-under-armour-agree-to-apparel-contract

UA is paying Yale (Yea, Yale) $16.5 Million over 10 years
http://www.bloomberg.com/news/artic...s-paying-big-ten-money-to-sponsor-yale-sports

South Carolina's UA deal is $24.5 million in rights fees and $44.5 million in product allowance, plus a $2 million signing bonus.
http://www.thestate.com/sports/coll...c-football/article61328227.html#storylink=cpy

I believe @Caliknight posted that we're hoping or expecting at least Cal $.

 

[DNA22]

I believe @Caliknight posted that we're hoping or expecting at least Cal $.

What makes u think we will get that? Being honest with ourselves

 

[PSU_Nut]

On these contracts do we get any royalties from from Nike apparel sold or is that in the contract $$$ then Nike gets all the profits from apparel sales

School still receive royalties. Rutgers get 12% of the wholesale price.

 

[Knight Shift]

What makes u think we will get that? Being honest with ourselves

DIdn't that guy who sounded Kyle Flood in the video introducing the new uniforms wax poetic about how RU is a jewel in the center of the media universe and there was a halo around us or some shit like that? He will pay for that jewel.

 

[srru86]

Would people like us to stay with Nike ?
I think whatever the recruits like and gives us the best deal . I still think Nike is the standard and more popular with hs kids, but maybe it's another brand .

My considerations by importance:

1.Very much most important - Who pays us the most
2. Much less important - What the recruits like
3. Barely registers on the meter - What fans want

 

[Knight Shift]

At about 2:13
"It is the media capital of the world and all eyes are on New York City and there is a halo effect on the tri state area and we would be missing a great deal if we did not have Rutgers University in our portfolio."

Use it in the negotiations. Go get a great deal.

 

[Leonard23]

What makes u think we will get that? Being honest with ourselves

I have no idea what we'll get as I was simply passing info that was posted, but IIRC, it was based on his convo with Hobbs.

 

[Knight Shift]

I have no idea what we'll get as I was simply passing info that was posted, but IIRC, it was based on his convo with Hobbs.

And there is absolutely no reason we can't get the same or more. Nike basically said it themselves in the video.

 

[lighty]

What makes u think we will get that? Being honest with ourselves

If we're being honest, we will get more than Cal.

The Big Ten gets more TV exposure nationwide than the PAC -- and we've already seen at least one national game per year in prime time. This is the situation where being in the Big Ten and being in the NY media capital of the world will pay dividends.

While the PAC is a great conference, they get hurt TV-wise by having games that wind up starting at 10pm on the east coast.

 

[DNA22]

If we're being honest, we will get more than Cal.

The Big Ten gets more TV exposure nationwide than the PAC -- and we've already seen at least one national game per year in prime time. This is the situation where being in the Big Ten and being in the NY media capital of the world will pay dividends.

While the PAC is a great conference, they get hurt TV-wise by having games that wind up starting at 10pm on the east coast.

All of that may be true but I wouldn't hold your breath. If being a Rutgers fan for 20 years has taught me anything, it's that you should NEVER expect more money.

It may be hard to comprehend, but I live in Baltimore now but lived in NYC for a few years after getting my masters. I mean this with respect but NOBODY in NYC cares about Rutgers football. The BTN was able to make inroads bc of Rutgers location but honestly with the melting pot that is NYC, Rutgers has no more fans there than most other Big 10 schools.

I just know that after year after year of being let down from a financial standpoint by RU, that I'm not getting my hopes up. Personally I'd love to get a big contract for uniforms so we can finally get rid of the awful corporate name on our stadium

 

[cRURah]

Is it possible that the pittance amount of the current contract shows that Pernetti thought we were stuck in no-mans-land conference territory and didn't have a clue we were going to be invited to the B1G?

 

[PSU_Nut]

That is putrid. Lots of other good info in the linked article.
http://www.app.com/story/sports/col...s-new-traditional-football-uniforms/83531332/

Rutgers athletics is wrapping up its fourth year of a five-year apparel contract with Nike worth $5.2 million with a $130,000 base payment to the school. The next contract is expected to go out to bid and be worth significantly more now that Rutgers is a member of the Big Ten.

Call just made a deal with UA that will pay Cal $86 Million.
http://bleacherreport.com/articles/...fornia-under-armour-agree-to-apparel-contract

UA is paying Yale (Yea, Yale) $16.5 Million over 10 years
http://www.bloomberg.com/news/artic...s-paying-big-ten-money-to-sponsor-yale-sports

South Carolina's UA deal is $24.5 million in rights fees and $44.5 million in product allowance, plus a $2 million signing bonus.
http://www.thestate.com/sports/coll...c-football/article61328227.html#storylink=cpy

One thing to keep in mind is much of the "value" in those contracts is free equipment. When the retail price for a Nike t-shirt is $30 or one football uniform is $350 it doesn't take long to go trough a million in equipment. Most teams will go through 4 or 5 sets of football uniforms in a season. Just football uniforms might be $200k.

 

[greenknight]

Thanks PSU didn't know that on the 12%

 

[gringo]

B1G factor is huge. The Under Armor factor helps a lot too. They are pushing up bidding for teams and individual athletes (Curry, Brady, etc.) in a market that Nike has dominated for a long time. The competition is good for us. It appears that footwear has the highest margins. UA realizes this and has been pushing hard to compete - even though they have been selling shoes for less than 10 years.

Would be interesting to see how these contracts break down - cash to school, product allowance and royalties.

 

[PSU_Nut]

B1G factor is huge. The Under Armor factor helps a lot too. They are pushing up bidding for teams and individual athletes (Curry, Brady, etc.) in a market that Nike has dominated for a long time. The competition is good for us. It appears that footwear has the highest margins. UA realizes this and has been pushing hard to compete - even though they have been selling shoes for less than 10 years.

Would be interesting to see how these contracts break down - cash to school, product allowance and royalties.

Royalties is a separate deal. That is set by the college for licensing merchandise. The majority of these contracts are often product allowances especially in the case of large athletic departments like Rutgers.

 

[Akron Buck]

I can't see you getting less than $50 mil totaled in product/cash now that you are in B1G.

tOSU signed a deal last year for $252 mil in product/cash for 15 years.

 

[Leonard23]

B1G factor is huge. The Under Armor factor helps a lot too. They are pushing up bidding for teams and individual athletes (Curry, Brady, etc.) in a market that Nike has dominated for a long time. The competition is good for us. It appears that footwear has the highest margins. UA realizes this and has been pushing hard to compete - even though they have been selling shoes for less than 10 years.

Would be interesting to see how these contracts break down - cash to school, product allowance and royalties.

Here are the terms of the Cal UA deal:

http://espn.go.com/college-sports/story/_/id/15304410/california-berkeley-armour-agree-10-year-deal
Sources say the deal is worth almost $86 million in cash and product. It includes a $3 million signing bonus, $3.5 million in cash per year and an average annual product allowance of $4.76 million.

The new pact is worth much more than what Nike was paying the Golden Bears. In the final year of its Nike deal, Cal will receive $2 million in product and $150,000 in cash. Its cash intake will increase more than 2,000 percent in 2017-18.

Cal signed what might be the most comprehensive deal in college sports. By involving the whole campus in negotiations, athletic director Mike Williams was able to offer Under Armour assets that haven't been available in other partnerships.

This deal, for example, will include outfitting the school's 34 official club sport teams in the brand. It will also guarantee that Cal's faculty and student body get a discount on Under Armour's connected fitness bundle, UA HealthBox, and make Cal the home for Under Armour's entrepreneurial contest Future Show.

Here is the entire contract for the new Michigan Nike deal for up to $173.8M, which includes 2 things we should try to get too & they are 3 student internships at Nike HQ each summer & collaborating on innovation in sports tech:
http://www.freep.com/story/sports/c...s/2016/04/26/michigan-nike-contract/83533954/

 

[PaKnight]

All of that may be true but I wouldn't hold your breath. If being a Rutgers fan for 20 years has taught me anything, it's that you should NEVER expect more money.

It may be hard to comprehend, but I live in Baltimore now but lived in NYC for a few years after getting my masters. I mean this with respect but NOBODY in NYC cares about Rutgers football. The BTN was able to make inroads bc of Rutgers location but honestly with the melting pot that is NYC, Rutgers has no more fans there than most other Big 10 schools.

I just know that after year after year of being let down from a financial standpoint by RU, that I'm not getting my hopes up. Personally I'd love to get a big contract for uniforms so we can finally get rid of the awful corporate name on our stadium

We are getting more, much more, money.

We do have more fans in NYC than other B1G schools.

 

[RU#1fan]

:chairshot:

My prediction- 10 years $30 mil

Way too low. Gotta believe that RU 's upcoming Contract for 10 years is worth more.
By comparison Under Armour paying over $16mil to the ant size Yale in the College Sports world would mean RU getting only 80% more with your prediction.
We have the B1G and are in the media capital of the world . Hobbs will leverage more ....if not Nike then UA or then Adidas

 

[gringo]

Royalties is a separate deal. That is set by the college for licensing merchandise. The majority of these contracts are often product allowances especially in the case of large athletic departments like Rutgers.

Thanks - makes sense. Any idea if the Royalty percentage is similar for all schools? Notre Dame will sell a lot more product than Yale - just wondering if they have any leverage with their cut.

 

[MV9000]

People on here really over estimate RUs connection with NYC, i know VERY few avid RU football fans even from recent alum in and out of NYC. Like a prior poster said the fans really arent there. I do hope with some future success we can break that market.

 

[imbazza2]

Who wants the NYC metro area eyeballs the most, Nike or Under Armor or Adidas? I like this dog fight. Yes I know UA is Maryland based but they are B10 brothers, Put you hate aside and look for the Big Bucks and a 3way dog fight is GOOD!.
tosu is the top shelf team with ~ $16.8/year over 15 years
Cal as used above, is on par with a national drew that Rutgers can draw. Local draw of Metro NYC eyeballs = Rutgers is #1 yes syracuse and ped state fans suck on it, any stat will show that and we are growing as this new conference does have appeal. So to compare us to CAL is what should be a base line not our ceiling
New deals
Cal= $8.6M/y 10y contract (smart short contract)
osu= $16.8M/y 15y contract
Texas= $16.6M/y 15y contract
U of South Carolina= $7.15M/y 10y contract (Smart short contract)
I would like to see a 8-10M deal for 10 year contract. 12-14 for a 15year deal

 

[DNA22]

We are getting more, much more, money.

We do have more fans in NYC than other B1G schools.

I used to live in Williamsburg, just across the bridge from the east Village. I'm sorry man but in the whole 2 years I lived there I met a grand total of 3 other Rutgers fans. This while living in one of the busiest social districts in the world

 

[Caliknight]

Our next deal will be much, much bigger. With Nike or someone else.

Hopefully it's with Nike.

 

[imbazza2]

I used to live in Williamsburg, just across the bridge from the east Village. I'm sorry man but in the whole 2 years I lived there I met a grand total of 3 other Rutgers fans. This while living in one of the busiest social districts in the world

Go use Google stats and you will see RU is #1 with nd and osu and ped state and syracuse are all behind RU in football fan affiliation. So your microcosm view of "Williamsburg" may be true but we are talking ~20 million people in Metro NYC pool, so your stats are a bit too few to be statically significant

 

[DNA22]

Who wants the NYC metro area eyeballs the most, Nike or Under Armor or Adidas? I like this dog fight. Yes I know UA is Maryland based but they are B10 brothers, Put you hate aside and look for the Big Bucks and a 3way dog fight is GOOD!.
tosu is the top shelf team with ~ $16.8/year over 15 years
Cal as used above, is on par with a national drew that Rutgers can draw. Local draw of Metro NYC eyeballs = Rutgers is #1 yes syracuse and ped state fans suck on it, any stat will show that and we are growing as this new conference does have appeal. So to compare us to CAL is what should be a base line not our ceiling
New deals
Cal= $8.6M/y 10y contract (smart short contract)
osu= $16.8M/y 15y contract
Texas= $16.6M/y 15y contract
U of South Carolina= $7.15M/y 10y contract (Smart short contract)
I would like to see a 8-10M deal for 10 year contract. 12-14 for a 15year deal

Maryland is always going to get more money from UA bc that's Kevin Planks alma mater. I've said it a few times that I live in Baltimore and Under Armour is literally EVERYWHERE you look. Kevin Plank uses Maryland as his personal runway similar to how Nike uses Oregon.

The other thing is maybe I'm just crazy here but when did we get on the same level as South Carolina? South Carolina for the last 10 years has been a perennial top 25 team and on top of that are one of the most dominant baseball programs in the country. I'm all about team support but some of us see Rutgers very differently in terms of where we stand athletically as a school.

When you're two big money sports (football and MBB) go a combined 2-25 in conference play, how in the world do u expect to get big time endorsement deals?

 

[PaKnight]

Go use Google stats and you will see RU is #1 with nd and osu and ped state and syracuse are all behind RU in football fan affiliation. So your microcosm view of "Williamsburg" may be true but we are talking ~20 million people in Metro NYC pool, so your stats are a bit too few to be statically significant

Yes, no one is saying that NYC is a huge RU town, just that we have more fans than other B1G schools.

 

[DNA22]

Go use Google stats and you will see RU is #1 with nd and osu and ped state and syracuse are all behind RU in football fan affiliation. So your microcosm view of "Williamsburg" may be true but we are talking ~20 million people in Metro NYC pool, so your stats are a bit too few to be statically significant

Spoken like someone who has never lived in the city. New York is constantly changing with more people moving in and out every single year. Families don't 'settle' in the city, the move to the suburbs. If you are using a Google search to try to justify the feel of the city, ur just delusional and misinformed. If you think for a minute there are more Rutgers fans in NYC than Michigan, Penn State and Northwestern, ur simply ignorant to the current state of the city

*FYI I only used conference foes in that response. There's a TON more Syracuse basketball and Notre Dame football fans than any other big 10 school

 

[Caliknight]

Data has been posted here disproving your theory, Dna.

 

[DNA22]

Yes, no one is saying that NYC is a huge RU town, just that we have more fans than other B1G schools.

Unfortunately that is false though. I LIVeD in the city, I have family that owns a couple bars and restaurants around the city, I've been all over the place. To think for one minute that there are more Rutgers football fans in NYC than Notre Dame footballs fans is just pure ignorance