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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Because the deal is not yet finalized, Rutgers officials declined comment on this report.
As a result of the Adidas deal, Rutgers’ athletics teams — including football — will be donning new uniforms for the second straight season.
The Adidas deal will follow a five-year pact with Nike that runs through June 30, 2017.
Rutgers’ deal with Nike was worth a total of $5.2 million in apparel compensation and a base payment of $130,000 annually, according to a contract obtained by NJ Advance Media through the university’s Open Public Records office.
Sources say the Nike renewal deal never gained serious traction. Although Nike had the right of first refusal, the Oregon-based shoe company declined that option, a source said.
Nike’s offer to Rutgers was to keep Rutgers’ annual compensation at $1.1 million, according to multiple sources.
A look at RU football revenues
According to a July 2016 Forbes.com report, Rutgers ranked last among 65 Power 5 Conference programs in terms of annual sports-apparel value. The report ranked UCLA, which reportedly signed a 12-year, $280 million deal with Adidas last year, as the most lucrative deal in college athletics.
Forbes.com ranked Ohio State ($16.8M with Nike), Michigan ($15.7M with Nike), Wisconsin ($9.6M with Under Armour) and Indiana ($6.7M with Adidas) as the Big Ten’s four richest programs in terms of sports-apparel deals.
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.
As part of the Nike deal, Rutgers officials were not permitted to engage in discussions with another shoe company until May 31, 2016. Sources say Rutgers Athletics Director Pat Hobbs had been actively involved in negotiations ever since, meeting with Under Armour officials last July.
Hobbs’ pitch, according to multiple sources, was to work with Big Ten-rival Maryland to create an annual Under Armour Trophy Game between the schools’ football teams. Rutgers and Maryland will stage a unique wrestling-football doubleheader at Yankee Stadium on Nov. 4, 2017, and Hobbs was said to have desired to make Under Armour a key partner around the event.
Founded by Kevin Plank, a former Maryland football player who serves as chief executive of the Baltimore-based sports-apparel company, Under Armour is in the midst of a 10-year deal with Maryland that reportedly rewards the university $4.4 million annually in cash and gear.
A look at RU hoops expenses
Last May, Rutgers unveiled new Nike uniforms for all of its teams. The football uniforms in particular were widely lauded by the fan base after the program opted to go to a traditional look after an unpopular version was unveiled in 2012.
According to Rutgers’ Fiscal Year 2016 financial report filed to the NCAA, the Scarlet Knights’ football program received the largest amount of pay-in-kind Nike merchandise during the 2015-16 season.
The report listed Rutgers football as receiving $464,933 in apparel and equipment. At $107,321, the women’s basketball program ranked second and coach C. Vivian Stringer’s team was followed by men’s basketball ($67,692), men’s soccer ($64,924), softball ($29,703), women’s soccer ($19,998), women’s lacrosse ($19,981), baseball ($19,977), men’s lacrosse ($19,960) and gymnastics ($19,896).
Keith Sargeant may be reached at ksargeant@njadvancemedia.com. Follow him on Twitter @KSargeantNJ. Find NJ.com Rutgers Football on Facebook.
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