Wisconsin picks Under Armour over Adidas

University cites belief it will sell more merchandise by moving away from Adidas.

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Adidas has lost another major college athletics program to its competitors.

University of Wisconsin has agreed to a deal with Under Armour.

The deal calls for Under Armour to supply $3.3 million in shoes, apparel and equipment to UW-Madison’s 23 athletic teams for free in the first year. The school will get $2.5 million worth of free gear in year two. The amount of free gear will increase incrementally to $3 million by year 10.

The company also will pay UW-Madison $4 million annually; $450,000 in annual licensing royalties; up to $500,000 to rebrand the school’s athletic facilities; and $150,000 to create Under Armour retail space in the school’s clothing stores.

Under Armour also agreed to hire at least two UW-Madison students every year as interns at its Baltimore headquarters and will own the exclusive right to sell all replica uniforms and products. UW-Madison will get access to company archives and inspection reports for all its facilities that produce goods for the school.

(SOURCE: OregonLive.com)

The university cited a belief it will sell more merchandise by moving away from Adidas.

  • Wisconsin athletic director Barry Alvarez said the deal wasn’t made just for financial reasons. The terms support that, at least somewhat. While Wisconsin will get $3 million in equipment and apparel in the first year — enough to re-outfit every team on campus — that drops to $2.45 million in the second year. That’s less than the $2.75 million in equipment and apparel the university will get from Adidas this year, meaning Wisconsin was willing to accept less in equipment and apparel in order to make the jump.
  • In addition, a proposal submitted to the university’s Board of Regents noted the athletic department believes it can sell more licensed apparel with Under Armour than it did with Adidas.

(SOURCE: Portland Business Journal)

Adidas has lost several major universities in the last year, including two of the most successful schools in the Big Ten. While its had success signing star athletes to lucrative individual deals, it appears the brand is struggling to employ that strategy to align with larger institutions.

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