Adidas or Nike

Texas A&M’s apparel contract with Adidas ends in June 2014. They signed a 7 year deal in 2007 that included the following terms:

$250,000 signing bonus.
$800,000 per year with an additional 10% increase in each of the last 6 years of the contract.
Including the signing bonus, A&M has made $7,839,737 off of this contract.

Given the hype that has surrounded the program, A&M has all the leverage during this round of contract negotiations. Not all contracts are created equal though. A&M’s current contract pales in comparison to the likes of Texas, LSU, and Michigan just to name a few. These schools command over double of what A&M currently makes.

Last season A&M was the second most watched college football team, only behind Alabama. Adidas has gotten a huge bargain on the A&M contract these past two years with Johnny Manziel and A&M in the SEC. With the increased exposure, look for A&M to at least double what the current contract pulls in.

A&M could continue to carry Adidas.
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Or they might switch to Nike.
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