Perhaps the flagship school of Nike's collegiate sponsorship business, the University of Oregon has reportedly reached a tentative agreement with the sportswear giant that will net the Ducks $88 million in cash and apparel over the next 11 years.
According to The Oregonian, Oregon's board of trustees will consider official approval next week. Per terms outlined in the agreement description, the university will receive $2 million annually from Nike until 2023, then $2.5 million each year until 2028. The school would also receive $5 million in apparel annually, with a gradual increase to $6 million by 2022. Under the current contract, which expires in June, Nike gives Oregon $750,000 a year in cash and $2.5 million a year worth of apparel and other gear.
Additionally, Nike will kick back 15 percent royalties from sales of apparel bearing the school's logo, as well as 5 percent from footwear. Oregon will also receive a $3 million signing bonus.
The alma mater of Nike co-founders Bill Bowerman and Phil Knight, Oregon has a unique arrangement with the brand that essentially requires it to be Nike school as long as it's wanted. Had Oregon had the opportunity to negotiate with other brands, Nike had the contractual right to match or exceed any offer. It never reached that point.