IU Athletics Director Fred Glass announced that IU had extended its partnership with Adidas on Aug. 18. The Indiana Daily Student acquired a copy of the contract, dated July 15, through a public records request, bringing some more details of the agreement to light.
The contract, which runs from July 1, 2016, to June 30, 2024, is worth $53.6 million, but it offers IU 21 ways to increase its earnings through incentive compensation. If the IU football team wins a national championship during the lifetime of the deal, the University will receive an additional $500,000 — the largest of the incentives.
Eleven of the incentives involve the Hoosier football program, ranging from making the College Football Playoff to winning the Big Ten.
The IU men’s and women’s basketball programs have four team-specific incentives each. The University will receive $250,000 if the IU men’s basketball team wins a national championship and $50,000 if the Hoosiers win the Big Ten.
IU earns $100,000 if IU Coach Tom Crean is the NCAA Men’s Basketball Coach of the Year, and the school gets $50,000 if Crean earns Big Ten Coach of the Year honors.
In 2012, Crean was named ESPN.com’s National Coach of the Year and Sporting News’ Big Ten Coach of the Year. The Hoosiers won the Big Ten regular season championship in 2013.
Adidas will supply IU’s athletic programs with $3.6 million worth of Adidas products during the 2016-17 school year, and that amount increases by $50,000 annually for the duration of the agreement. There’s also an additional merchandise allotment of $200,000 per year.
The contract stipulates the Hoosiers must wear at least one alternate football uniform per season and one alternate basketball uniform for “special games or events to be worn for a mutually agreed upon game or games per year.”
There are clauses in the contract that could potentially reduce Adidas’ payout to the University. For example, if IU is placed on probation by the NCAA, resulting in the prohibition of television appearances for the Hoosiers’ basketball or football teams, then Adidas has the right to cut its base compensation payment in half.
IU’s base compensation starts at $1.425 million in 2016-17 and climbs to $1.65 million in 2023-24.
A seemingly minor wardrobe indiscretion could cost the University a percentage of its base compensation. Spatting, defined as “taping or otherwise covering up any portions of any Adidas logo or trademark on athletic footwear supplied by Adidas,” results in a written warning upon the first offense by a key player — “QB, RB, WR, or other media star at any other offensive, defensive or special teams positions” – or “several non-material players” during a bowl, tournament or postseason game.
Adidas can reduce IU’s base compensation by 10 percent if a second offense occurs, 15 percent for a third occurrence and 25 percent for a fourth occurrence.
A one-time branding review will be undertaken at no cost to IU, and Adidas will spend at least $300,000 per year on marketing activities. Adidas can request the coach of each of IU’s athletic programs for up to three appearances per contract year for events pertaining to the advertisement, promotion and sale of Adidas products.
Andy Wittry
