AJC > Sports > Tech > Blog > Archives > 2008 > August > 20
Wednesday, August 20, 2008
Apples, oranges and a big payoff
The Atlanta Journal-Constitution
Going to go a different direction today, but I may check back in with some standard fare later. Reward for the diligent at the end of this blog.
First, regarding the Russell Athletic sponsorship story:
It was trimmed to fit the paper, and some interesting material didn’t make the cut.
Surely, some will wonder why there is such a great disparity between, say, UConn’s new 10-year, $46 million deal with Nike (and Washington just did a 10-year, $39 million deal with Nike, although that was not in the story) and Tech’s 10-year, $20 million-plus package.
The simplest explanation: Nike’s deals with those schools include footwear, which they make and Russell does not, and there is BIG money in shoes, obviously. Secondly, UConn has 24 varsity sports to Tech’s 15, which means that much more exposure. Mostly, it’s gotta be the shoes.
There is a stipulation in the Russell contract with Tech that says if Russell develops or acquires athletic footwear, Tech must give due consideration to using the product. With Warren Buffett at the controls of Russell now, so to speak, you’d think there is a real possibility that Russell will branch out into footwear in the next 10 years. That guy goes for broke in everything.
Also interesting: Tech is the only school with which Russell has an all-sports contract. They do football and a couple other sports with Mississippi State, and I think they do a sport with Clemson, etc. But Tech is the only all-in school.
More edits:
Nike recently did deals with UNLV worth about $3 million. Why the relatively low number? The package include two five-year deals and a three-year deal for just mens and womens basketball and football.
The only cash in the Nike-UNLV is $75,000 per year that Nike will pay the school specifically to defray basketball coach Lon Kruger’s $5.2 million salary, according to the Las Vegas Review-Journal.
Get a load of that salary!!!!!
This made the story, but for sake of comparison here it is again:
According to a copy of the contract obtained by The Journal-Constitution, Tech’s deal will net (as a non-profit organization, the Georgia Tech Athletic Association in tax-exempt) $750,000 in cash per year from Russell for each of the next four years, increasing to $950,000 for each of the final two.
Finally, if you haven’t seen it (and I’m sure some of you have), go to Youtube and put “UGA” and “Hitler” in the search field. You will not be disappointed. I don’t think.
Later.
Matt
