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Rutgers new apparel deal with Adidas: 6 years, $10 million

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Terry_2426

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Just posted on NJ.com by Sargeant.

http://www.nj.com/rutgersfootball/index.ssf/2017/02/rutgers_adidas_contract_nike_apparel_deal.html

The Rutgers athletics teams are set to receive a makeover.

According to multiple sources, Rutgers is closing in on a deal with Adidas that deems the German sportswear manufacturer as the official supplier of apparel, footwear and other accessories of the Scarlet Knights.

A six-year deal believed to be worth just north of $10 million in apparel and cash value is expected to be formally announced later this week, according to two sources who spoke on condition of anonymity.
 
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Terry_2426 said:
The Rutgers athletics teams are set to receive a makeover.
Click to expand...

No make over needed.
72504516_crop_north.0.jpg

We're big boys
9561109-brandon-snyder-ncaa-football-iowa-rutgers-1.jpg
 
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"Because Rutgers' Adidas contract will be shorter in length than most of those deals, an industry insider told NJ Advance Media it wouldn't be surprising to see Rutgers renegotiate the terms midway through the six-year term because the Scarlet Knights brand should be enhanced as moves further past the recent string of controversies."

Thanks Kyle and Julie.
 
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Think in that other thread, some thought we would be on par with Illinois, whose deal is not properly reflected in this chart Forbes had in July 2016 (Illinois deal is $44.5M for 10 years (avg. $4.5M per year), no cash component) (Also, UCLA deal is wrong). Wonder how much far "north of $10 million" our deal will be. :


college-apparel-deals-img.jpg
 
What is really shocking is that Syracuse receives 3M and BC 2.5 M. Hard to believe they sell more clothing than we do. Miami getting 7 Million, or 7 times what we do, is a real eye opener.
 
So is this $10 million just for apparel which seems to be the way the article reads and the additional yearly cash payout is TBA? Confusing if so because how could apparel be worth less from team to team especially when we play so many varsity sports.
 
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When you have a deal with these companies, it's not just the cash value that is important.
Each school is set up in levels, and whichever level a school is on greatly affects the type of deal that is signed. Previously, Nike had us on their 4th level out of 5 - basically, the lowest involvement level. I don't think they ever even sent a rep to the school for support .
I hear that adidas has us set up on their top level and that their support will absolutely crush anything we've had before. They will make sure we are taken care of on and off the playing field .
 
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Saint Puppy said:
Uniform advice to Adidas - KISS - Keep It Simple Stupid!!!
Click to expand...
If Adidas do the same thing with the Rutgers Unis they did with Miami going back to the old school Hurricanes unis, then this would be a good thing. Only bad thing about this is that Adidas have those tire marks on most of their jerseys. Here's hoping they don't do the special jersey of the week thing.
 
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Hard to believe a Big 10 school in the world's largest media market gets the lowest paying contract of all 65 schools. Schools like Wash State and Vanderbilt get more? SMH. Maybe Trump can be our next AD.
 
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Face it, we offer no value right now. Through Twitter, Sarge told me the deal is light in cash and heavy in equipment. Hobbs also tried UA first, but was not offered much. Sad.
 
I was hoping for UA b/c I really like their stuff but hard to say "no" to more $$$. I hope that Adidas goes the Miami route (classic-ish & clean) vs. the Louisville route (yikes!)
 
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We need to find a sport that becomes a powerhouse top 25 team. Without a top 25 hoops or grid iron team the value will be lower.

Outside of the university bookstore where is the demand for Rutgers apparel with a Nike or Adidas logo. The contract shows the true value of the program. If not for location we would not have been a consideration for the B10.

You may get some casual fans in NJ buying Rutgers gear at a Kohls or Modells but when you cross the border to PA it is mostly PSU with some Pitt and Temple. In NYC it is Notre Dame, St Johns, Syracuse, and the perennial top 25 programs. The value shows when the kids that attend the non-Div 1 schools in NJ start to overwhelmingly root for RU. In PA you get that with the PSU team. many of the small private schools and other state schools rally around PSU football. In NJ you really don't have that with FDU, Montclair St, Rowan, TCNJ, Kean, SHU, etc... Many of the kids will watch Michigan, Ohio St, Florida, Alabama over Rutgers. Notre Dame is probably more popular with many area casual fans for football than Rutgers.

A simple comparison should be RU vs Northwestern and Minny.
- Northwestern is a private school that tends to struggle in revenue sports. They do get a decent football team every 5-8 years that goes to a decent bowl game. They have a decent hoops team this year that may make the tourney. As a private school the big advantage they have is a nationwide alumni base
- Minny is in a scenario like Rutgers with below avg football and basketball. They did have a nice football season this year. They do have a top hockey program that helps sell jerseys. They are competing with a pro teams like the Vikings, Twins, and Wild. There is no NBA franchise in town.
 
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Yes, let the bitching begin. The total value of this contract compared to peers whether in the Big East (Pitt, BC, Syracuse, etc.) or B1G (i.e. Illinois) is pathetic. And some of these peers negotiated their contracts during the last go round.

For those that say I'm over valuing Rutgers position, I understand we shouldn't be paid in comparison with the bigger schools with more football tradition and winning. One can argue Cal Berkeley is a peer and they're being paid more than 4 times Rutgers is annually and on average. Just pathetic and very disappointing
 
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RU85inFla said:
Barchi just got schooled again in understainding the value of the "brand".
Click to expand...

I think we all got schooled in the value of the brand. Even in my worst nightmare did we not have the least valuable brand in all of Power 5. There is little value in a program with football and basketball programs which stink.

The root cause is our alumni haven't donated on the level of our peers for all these years.
Need to raise the remaining 30M stat.
 
RURM85 said:
Yes, let the bitching begin. The total value of this contract compared to peers whether in the Big East (Pitt, BC, Syracuse, etc.) or B1G (i.e. Illinois) is pathetic. And some of these peers negotiated their contracts during the last go round.

For those that say I'm over valuing Rutgers position, I understand we shouldn't be paid in comparison with the bigger schools with more football tradition and winning. One can argue Cal Berkeley is a peer and they're being paid more than 4 times Rutgers is annually and on average. Just pathetic and very disappointing
Click to expand...

4x more??? Where are you getting this from??

They're being paid 2.15 annually. We will be getting paid about 1.5 million anually. That's not more than 4x what we are getting paid annually.
 
Adidas has opened a new flagship store at 46th and 5th (their largest in the world). Haven't entered it but walk by every day. Very cool stadium set-up. Will check it out once they become RU's apparel supplier to see what they are offering in the center of Manhattan.
 
mikemarc1 said:
4x more??? Where are you getting this from??

They're being paid 2.15 annually. We will be getting paid about 1.5 million anually. That's not more than 4x what we are getting paid annually.
Click to expand...

The story said "North of $10 million."
10/6=1.67 Milliion

But Cal negotiated a new UA deal that was announced in April:
BERKELEY, Calif. (AP) — California announced a 10-year apparel contract with Under Armour.

A person familiar with the deal said Cal will receive about $86 million in cash, apparel and operational support under the terms of the contract. The person spoke on condition of anonymity because the school did not release the details. The contract will net Cal about $2 million more in cash each year than it got under the previous contract with Nike, the person said.

Under Armour will design and supply all footwear, apparel and equipment for Cal's teams. The company will also supply internships and jobs for Cal students.


The contract begins July 1, 2017.
-------------------
So Cal is getting $8.6 milliion/ year. That's 5.14 times RU's deal if it is not "north" of $10 million. They are getting more in cash alone than we are getting total. Wow.
 
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mikemarc1 said:
Per Sarge - Word is Adidas made a strong pitch to make Rutgers more prominent in NYC. So that's good news, too.
Click to expand...
Would be a good thing if Rutgers gear pops up in the Adidas stores in Soho and Elizabeth.
 
mikemarc1 said:
Agree. But they offered the most....plus that. This is a win for RU.

Baby steps, folks.
Click to expand...

Agree but it's a damn shame this is where we are at this point. It truly is as if the Schiano years never happened.
 
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Despite what some may think a big time coach essentially pays for himself. If we got a star coach at $4M per and won some games our value on things like this would immediately go up.
 
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Oh, and if that chart is right, Adidas' deal with Nebraska is only $2.6 million. Seems the shorter the deal, the lower the amount. We were not ready to make a long term commitment. Hobbs seems to have played this right. Short term deal, build the brand on the courts and fields and go for bigger $$ in 4 years when the deal is about to expire.

Also, seems Adidas throws in a lot of extras and offers a lot of other fringe benefits.

Some details on Nebraska Deal:
http://www.omaha.com/huskers/nebras...cle_84b7681e-e7ca-5b20-b5d9-2ca6bf74254f.html

“It's a mix of price, how much they're going to give you and quality of the merchandise,” Perlman said. “And if you put everything together, we didn't come close.”

Adidas' deal offers perks. The outfitter provides performance bonuses if teams win conference or national titles — $100,000 for a Big Ten football title, for example — and a second bonus if a coach wins a coach of the year award. Adidas gives practice balls to the football, basketball and volleyball teams. It offers $20,000 for apparel that enhances the “student game-day experience,” such as T-shirts for students at basketball games.

And since 2005, Adidas has had an on-site representative — former Husker assistant equipment manager Al Recker — who helps expedite requests from players.

http://www.omaha.com/huskers/footba...cle_c6846546-2ba1-5f0f-b8bc-3e857619627f.html
 
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RUfinal4 said:
We need to find a sport that becomes a powerhouse top 25 team. Without a top 25 hoops or grid iron team the value will be lower.

Outside of the university bookstore where is the demand for Rutgers apparel with a Nike or Adidas logo. The contract shows the true value of the program. If not for location we would not have been a consideration for the B10.

You may get some casual fans in NJ buying Rutgers gear at a Kohls or Modells but when you cross the border to PA it is mostly PSU with some Pitt and Temple. In NYC it is Notre Dame, St Johns, Syracuse, and the perennial top 25 programs. The value shows when the kids that attend the non-Div 1 schools in NJ start to overwhelmingly root for RU. In PA you get that with the PSU team. many of the small private schools and other state schools rally around PSU football. In NJ you really don't have that with FDU, Montclair St, Rowan, TCNJ, Kean, SHU, etc... Many of the kids will watch Michigan, Ohio St, Florida, Alabama over Rutgers. Notre Dame is probably more popular with many area casual fans for football than Rutgers.

A simple comparison should be RU vs Northwestern and Minny.
- Northwestern is a private school that tends to struggle in revenue sports. They do get a decent football team every 5-8 years that goes to a decent bowl game. They have a decent hoops team this year that may make the tourney. As a private school the big advantage they have is a nationwide alumni base
- Minny is in a scenario like Rutgers with below avg football and basketball. They did have a nice football season this year. They do have a top hockey program that helps sell jerseys. They are competing with a pro teams like the Vikings, Twins, and Wild. There is no NBA franchise in town.
Click to expand...
Wrestling is our powerhouse sport, with mens lacrosse and women's soccer not far behind.
 
bitnez said:
Despite what some may think a big time coach essentially pays for himself. If we got a star coach at $4M per and won some games our value on things like this would immediately go up.
Click to expand...

Agree. But if you are just realizing this is where we are now...where have you been the last 2 years?!
 
Knight Shift said:
The story said "North of $10 million."
10/6=1.67 Milliion

But Cal negotiated a new UA deal that was announced in April:
BERKELEY, Calif. (AP) — California announced a 10-year apparel contract with Under Armour.

A person familiar with the deal said Cal will receive about $86 million in cash, apparel and operational support under the terms of the contract. The person spoke on condition of anonymity because the school did not release the details. The contract will net Cal about $2 million more in cash each year than it got under the previous contract with Nike, the person said.

Under Armour will design and supply all footwear, apparel and equipment for Cal's teams. The company will also supply internships and jobs for Cal students.


The contract begins July 1, 2017.
-------------------
So Cal is getting $8.6 milliion/ year. That's 5.14 times RU's deal if it is not "north" of $10 million. They are getting more in cash alone than we are getting total. Wow.
Click to expand...

Thanks. I was being generous with the more than 4 times. I rounded up for Rutgers and down for Cal. Wow is right.
 
ruready07 said:
When you have a deal with these companies, it's not just the cash value that is important.
Each school is set up in levels, and whichever level a school is on greatly affects the type of deal that is signed. Previously, Nike had us on their 4th level out of 5 - basically, the lowest involvement level. I don't think they ever even sent a rep to the school for support .
I hear that adidas has us set up on their top level and that their support will absolutely crush anything we've had before. They will make sure we are taken care of on and off the playing field .
Click to expand...
That explains a lot. On many levels.

bitnez said:
Agree but it's a damn shame this is where we are at this point. It truly is as if the Schiano years never happened.
Click to expand...
The high water mark was not as high in reality as some would think.
 
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