Nike and Memphis athletics extend apparel partnership. How much is the deal worth?
University of Memphis athletics and Nike will remain partners for at least the next five years.
The Tigers and the behemoth global brand − which still maintains a strong relationship with Memphis men's basketball coach Penny Hardaway − quietly agreed to an extension in June, according to a copy of the amended contract obtained by The Commercial Appeal through an open records request. Nike will provide Memphis with $12.1 million worth of apparel and equipment for all of its athletes through June 30, 2028.
That figure represents a slight increase over what the Tigers got from Nike previously. Memphis will receive $2.4 million in apparel and equipment during the first year of the deal (up from $2.25 million last year). The school will get $2.35 million next year. The value of the agreement escalates each year after that: $2.4 million (in 2025-26), $2.45 million (in 2026-27) and $2.5 million (in 2027-28).
Memphis and Nike inked a 10-year all-sports contract in 2008, then agreed to a five-year extension in 2018.
"We are excited to continue our long-standing relationship with Nike," Veatch said in a statement. "Our two brands make perfect sense paired together, especially given Nike's Memphis distribution center demonstrating commitment to the City of Memphis as a whole. We look forward to many more years of our student-athletes and coaches wearing the Nike swoosh while competing for championships, and we appreciate Nike's continued investment in our programs."
Apparel sponsorships are commonly used to help athletic departments offset budgetary needs. Some are quite lucrative − including Notre Dame's recent extension with Under Armour, worth more than $10 million annually. Texas ($16.6 million a year), Ohio State ($16.8 million) and Michigan ($11.6 million) reportedly have the richest agreements with Nike. But most deals fall in the $2-$5 million range annually, according to a recent report from Yahoo Sports.
Memphis' contract with Nike also includes incentive-based cash bonuses. If the Tiger football team wins the AAC championship, it will earn $10,000. Participation in a "non-Tier 1 bowl game" (defined as a bowl game featuring a payout of less than $3 million) nets an extra $5,000. Nike will pay Memphis $10,000 if it plays in a "tier 1 bowl game" or a College Football Playoff game. A national championship win would be worth $25,000.
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Men's and women's basketball can earn $10,000 for winning a conference championship (either the regular-season title or tournament title, but not both). A Sweet 16 appearance would be worth $10,000, while advancing to the Elite Eight would net $15,000. The Tigers would earn $20,000 for a Final Four berth, and a national championship would be worth $50,000.
The contract also includes a provision for Nike to provide one summer internship a year for a University of Memphis student.
Reach sports writer Jason Munz at jason.munz@commercialappeal.com or on Twitter @munzly.
This article originally appeared on Memphis Commercial Appeal: Nike, Memphis athletics agree to contract extension on apparel deal
