When Tennessee signed an apparel deal with Nike in 2014 that would take effect in 2015, most Vol fans were excited about the move to Nike. But once the details of the deal were revealed, fans weren’t as enthusiastic, especially after Michigan’s deal with Nike was signed shortly after and was revealed to be a total of about $170 million for the whole contract.
Now almost two years into the deal, Tennessee has restructured and extended their contract with Nike.
According to a report from 247Sports, former Tennessee athletic director Dave Hart helped forge an amendment to the Vols’ deal with Nike that extended the contract and added more money coming in to UT. The report claims the new deal will be through 2025-26 rather than 2022-23 like the previous deal.
Not only did Tennessee extend their contract with Nike, but they also negotiated a more lucrative deal including higher compensation and higher product allotment. The previous deal had Nike paying Tennessee $1 million annually for the first four years of the contract and $900,000 a year for the final three years. Tennessee’s new deal has Nike paying them $1 million annually for the first seven years of the deal and $1.2 million for the last three years.
While the annual payment increase isn’t too significant, the biggest improvement comes in Tennessee’s total product allotment. The previous deal gave Tennessee a product allotment of $23.7 million over eight years. The new extension is worth $43.9 million in product allotment, and an additional $1 million will be added every year of the active contract.
Tennessee’s new extension brings the Vols’ total compensation from Nike to $11.6 million over 11 years of the contract. The product allotment is the more significant improvement, but Tennessee did manage to restructure an improved and extended overall deal with Nike after a somewhat underwhelming initial contract.