Date

2018 12:00 AM

Major

Business Management

Department

Management

College

Business

Project Advisor

XuHui Wo

Description

College athletics is big business. One of the emerging players in the industry today is athletic apparel companies, like Nike, Adidas, and Under Armour, that actually pay universities in exchange for the right to outfit their athletes. To develop an understanding of this partnership, my research explored the contracts athletic apparel companies sign with collegiate universities. Focusing on Iowa State’s contract with Nike, I analyzed specifically the value-adding aspects of the contract, the benefits that Iowa State realizes from these deals, and the value athletic companies find in spending millions of dollars on universities. The analysis was completed by carefully dissecting the contract, conducting interviews with Iowa State Athletics staff and student-athletes, and thoroughly researching Nike’s strategy. For Iowa State, partnering with Nike generates income, grants the school access to the latest gear, and even plays a small role in recruiting top-talent. In return, Nike’s spending secures the exclusive right to supply all of the university’s athletic gear, provides a meaningful amount of brand promotion, and opens additional revenue streams through the sale of authentic sideline gear. Overall, my research made it clear that the signing of these contracts generates significant benefits for both athletic apparel companies and universities.

File Format

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Jan 1st, 12:00 AM

The Value Behind the Numbers: An Analysis of University Athletic Apparel Contracts

College athletics is big business. One of the emerging players in the industry today is athletic apparel companies, like Nike, Adidas, and Under Armour, that actually pay universities in exchange for the right to outfit their athletes. To develop an understanding of this partnership, my research explored the contracts athletic apparel companies sign with collegiate universities. Focusing on Iowa State’s contract with Nike, I analyzed specifically the value-adding aspects of the contract, the benefits that Iowa State realizes from these deals, and the value athletic companies find in spending millions of dollars on universities. The analysis was completed by carefully dissecting the contract, conducting interviews with Iowa State Athletics staff and student-athletes, and thoroughly researching Nike’s strategy. For Iowa State, partnering with Nike generates income, grants the school access to the latest gear, and even plays a small role in recruiting top-talent. In return, Nike’s spending secures the exclusive right to supply all of the university’s athletic gear, provides a meaningful amount of brand promotion, and opens additional revenue streams through the sale of authentic sideline gear. Overall, my research made it clear that the signing of these contracts generates significant benefits for both athletic apparel companies and universities.