The Official UT Nike Jersey Release Day Thread, 12:00pm ET, UTSports.com

#52
#52
golfballs said:
We'll be getting less money from Nike than we did Adidas.
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Someone hasn't read the contract. In the end, the Nike deal favors Tennessee far more than the Adidas deal did.

Adidas paid out, what, $2.5mil/year? Nike is $1.5mil/year? That's chump change compared to the $23mil/year we're getting from the SECN. The football team revenue directly was around $75mil in 2014 and that is with 3/4 home games well under 100k attendance and low donation numbers due to an anemic program.

Nike gives 13% royalties on merchandise sold and Adidas was only giving 9%. We'll make up that $1mil easy in that alone.
 
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#53
#53
Not completely true. The university will receive a higher percentage per sale. In the long run its a better deal.
 
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#54
#54
agent|orange said:
Someone hasn't read the contract. In the end, the Nike deal favors Tennessee far more than the Adidas deal did.

Adidas paid out, what, $2.5mil/year? Nike is $1.5mil/year? That's chump change compared to the $23mil/year we're getting from the SECN. The football team revenue directly was around $75mil in 2014 and that is with 3/4 home games well under 100k attendance and low donation numbers due to an anemic program.

Nike gives 13% royalties on merchandise sold and Adidas was only giving 9%. We'll make up that $1mil easy in that alone.
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From articles I've read on this, UT will be clearing 4 mil plus a year AND be fully stocked with gear throughout the deal. I think Adidas had a limit on that last part.
 
#56
#56
agent|orange said:
Someone hasn't read the contract. In the end, the Nike deal favors Tennessee far more than the Adidas deal did.

Adidas paid out, what, $2.5mil/year? Nike is $1.5mil/year? That's chump change compared to the $23mil/year we're getting from the SECN. The football team revenue directly was around $75mil in 2014 and that is with 3/4 home games well under 100k attendance and low donation numbers due to an anemic program.

Nike gives 13% royalties on merchandise sold and Adidas was only giving 9%. We'll make up that $1mil easy in that alone.
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Yep, this deal is a win for UT pretty much any way you slice it.
 
#57
#57
butchna said:
From articles I've read on this, UT will be clearing 4 mil plus a year AND be fully stocked with gear throughout the deal. I think Adidas had a limit on that last part.
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Yeah, the gear allowance is sweet.

$3.5mil in equipment this year. Drops to $2.6mil next year and rises $100k every year until the end of the contract.

Additionally, $200k in gear will be provisioned for the UTAD staff outside of the team allowance.

And, again, the real winner is a 4% higher royalty kickback. The better we do, the more we sell, the more we get back. UT has the potential to make a lot of money if it reinvigorates it's fanbase with wins.

Can you imagine what a Sugar Bowl appearance would do for UTAD's bottom-line from merch revenue alone? That 4% is huge.

Oh, but get stuck on the $1mil/year lower salary for an AD that pulls in well over $100mil/year even with an awful football team over the last 8 years.
 
#59
#59
Can't wait...

fred-sanford-dancing-o.gif
 
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#60
#60
It's kind of like this:

- Take $1 salary but 13% in company revenue

- Take $1mil salary but 9% in company revenue

That 4% of company revenue stands to mean a lot more over a period of 10 years where inflation will also devalue a hard-numbered salary. UT just bet on itself and you have to appreciate that as well as UTAD being financially savvy.

We're just not used to an AD that knows how to run what is effectively a mid-sized company based on revenue.
 
#63
#63
agent|orange said:
It's kind of like this:

- Take $1 salary but 13% in company revenue

- Take $1mil salary but 9% in company revenue

That 4% of company revenue stands to mean a lot more over a period of 10 years where inflation will also devalue a hard-numbered salary. UT just bet on itself and you have to appreciate that as well as UTAD being financially savvy.

We're just not used to an AD that knows how to run what is effectively a mid-sized company based on revenue.
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Depends on what the revenue is.

How much did UT receive in royalties last year from Adidas?

Also, the equipment allowance is less under Nike than it was Adidas
 
#68
#68
agent|orange said:
Someone hasn't read the contract. In the end, the Nike deal favors Tennessee far more than the Adidas deal did.

Adidas paid out, what, $2.5mil/year? Nike is $1.5mil/year? That's chump change compared to the $23mil/year we're getting from the SECN. The football team revenue directly was around $75mil in 2014 and that is with 3/4 home games well under 100k attendance and low donation numbers due to an anemic program.

Nike gives 13% royalties on merchandise sold and Adidas was only giving 9%. We'll make up that $1mil easy in that alone.
Click to expand...

And you've read the contract to a college's new athletic supplier?

Man, it sounds like your life oozes with excitement.
 
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#69
#69
I read the contract stuff and fully agree and support the switch to Nike. Now having said that, someone explain to me why grown men can't shop on Thursday instead of Wednesday. Better yet, don't. Might interfere with your waxing or something. Just kidding guys but seriously, let's tone it down a little. We're named after soldiers willing to give their lives for their beliefs, and I don't think those beliefs were fashion or the term metrosexual.
 
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#72
#72
golfballs said:
Depends on what the revenue is.

How much did UT receive in royalties last year from Adidas?

Also, the equipment allowance is less under Nike than it was Adidas
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Absolutely, which is exactly what I meant when I said "UTAD just bet on itself".

I said how much it was in my post. I suggest a re-read.

While the equipment deal is less in valuation it is based on a somewhat dubious "wholesale versus retail" rating. Adidas quoted the value of equipment based on a wholesale cost and then inflated it based on what it's "retail worth" is. That's about as meaningful as an MSRP on a car. MSRP can mean anything, that isn't the real bottom line.

I'll take an MSRP $30k Audi over an MSRP $35k Cobalt any day.

The true value is UTAD betting on itself for the next 8 years and that 4% royalty paying dividends.
 
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