Louisville athletics lands $39 million deal with adidas
University of Louisville's athletics program announced a five-year, $39 million branding contract extension with adidas on Thursday, making U of L's deal with the sports apparel company the third-largest-known agreement of its kind in college sports.
The move comes at a time when college athletic departments' branding agreements with sportswear companies such as adidas, Nike and Under Armour are expanding at a rapid pace.
The schools' sports teams wear uniforms, shoes and accessories produced by the companies and receive cash and other benefits in exchange for representing the brands.
U of L athletic director Tom Jurich said the deal is quite a departure from when he started in 1997.
"When I first got here, nobody wanted to try to brand us," Jurich said at a news conference Thursday. "For every two pair of retail shoes we bought, they gave us the third item 20 percent off."
It's a different world now. The Portland (Ore.) Business-Journal estimated in December that the sportswear companies would invest some $250 million in collegiate athletics this year.
Adidas' $7.8 million per year contract with Louisville ranks just behind the University of Michigan's $8.2 million deal as the richest contract with the apparel company. University of Notre Dame's apparel contract with Under Armour yields $9 million a year, the highest known agreement in college athletics.
"This is a very exciting day for us in the athletic department," Jurich said. "We always want to be on the cutting edge of everything we do."
The projected $7.8 million per year from adidas will consist of uniforms, footwear and accessories for U of L's 23 sports teams, plus investments in advertising, equipment room expansion and digital and video technology.
Adidas and U of L will also partner to create scholarships and an internship program for 20 to 23 U of L students working in marketing, branding and other areas in the athletic department.
"It's a combination of a lot of things to invigorate our partnership and do some things the university wants to move forward with," said Jim Murphy, the NCAA sports marketing director for adidas.
Cash represents a projected $7.7 million of the $39 million deal. Jurich said U of L hadn't decided yet how it would use the money, which averages $1.54 million per year over the five-year contract.
Jurich said finishing U of L's new soccer stadium and building its new academic support center underneath Papa John's Cardinal Stadium were the top priorities at this point for the athletics department.
U of L is also planning to further examine stadium expansion at PJCS once the other projects near completion.
The new contract excited a significant part of the Cardinals' fan base. U of L football will have five different adidas uniform options and, when including helmets, the Cardinals will have "dozens of varying (uniform) combinations," U of L said.
Uniform creativity has increased in popularity in recent years, especially in football, with athletic programs like University of Oregon's leading the way with its array of uniforms.
Louisville football coach Bobby Petrino, who started the Cardinals' black jersey trend during his first tenure as U of L's head coach, said the increased uniform options help his staff with recruiting.
"I've always felt it was important for your players to look good and feel good, and then you have a chance to go out and play well," Petrino said. "Get ready because it's going to be fun. I can't wait."
To Jurich, the contract extension represented stability for U of L's athletics program. Louisville completes its final conference transition this summer when it moves to the competitive Atlantic Coast Conference.
The ACC will be the fourth league U of L sports teams have played in since Jurich became athletic director.
"They've (adidas) been there every step of the way with us. There've been a lot of growing pains as we change conferences. They had the foresight to stay with us and help brand us."
Reach Jeff Greer at (502) 582-4044 and follow him on Twitter @jeffgreer_cj.
Where it ranks
Here are some of the largest contracts between sports apparel companies and Division I athletics programs:
1. Notre Dame: $9 million (Under Armour)
2. Michigan: $8.2 million (adidas)
3. Louisville: $7.8 million (adidas)
4. UCLA: $7.7 million (adidas)
5. Kansas: $6.1 million (adidas)
Sources: Portland (Ore.) Business Journal and ESPN
How adidas money is distributed
Contract extension: Five years, $39 million
Cash: $.7.7 million, or $1.54 million per year
U of L's footwear, uniforms and accessories for all 23 athletic programs will be provided by adidas. Louisville football will have five different uniforms, with "dozens" of combinations with helmet options. Men's and women's basketball teams "will continue to have three or four" uniforms with a postseason uniform, too.
In addition to uniforms and apparel, deal invests in advertising, equipment room expansion, digital/video technology, spirit squads and athletics department/adidas internships for 20 to 23 students who wish to work in branding and marketing.