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AL.com: Alabama quietly extended Nike deal that missed gold rush
Posted on 8/8/18 at 12:11 pm
Posted on 8/8/18 at 12:11 pm
Really disappointing to read this considering the amount of money we could've gotten if we had waited a few years. Now even AU gets more money from Under Armour. Maybe Battle thought it was a good deal at the time, but its upsetting to see Battles didn't even seek out a competing bid. Its also odd how it was all kept under the radar. The guy really had no desire to be nothing more than a placeholder.
Was hoping we were close to getting the Jordan brand.
LINK
Was hoping we were close to getting the Jordan brand.
LINK
quote:
The arms race was on and Alabama appeared to be on deck since a widely reported extension signed in 2010 had a June 30, 2018 expiration date. Given the nine-figure paydays for fellow heavyweights, sports business experts predicted Alabama would secure a similar windfall.
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All told, Alabama's deal that runs through 2025 is worth $63 million in apparel and cash plus a $5 million signing bonus. That works out to $5.25 million a year compared to $18.7 million a year for UCLA and more than $16 million a year for both Ohio State and Texas.
quote:
Bob Dorfman, a sports marketing analyst, was surprised to hear about Alabama's 2013 deal with Nike. Like practically everyone else who follows this corner of the sports business world, he thought the contract was ending this June. "Certainly, if the deal was expiring, I would suspect Alabama would sign the richest deal of all right now," Dorfman said. "I would think they'd re-up with Nike and Nike would pay them definitely more than UCLA is getting paid by Under Armour."
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Notably, Battle said Nike was the only company in play when Alabama looked to lock in a long-term deal.
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Auburn is one of four SEC schools that isn't sponsored by Nike. It extended its deal with Under Armour in 2015 worth $78.1 million to make it the third richest deal at the time. It worked out to $8.7 million a year compared to Alabama's $5.25 million. Alabama comes in well behind Louisville, the school it faces in the football season opener Sept. 1 and more than a few other programs with less name recognition. The Cardinals get $16 million a year after re-signing in 2017. Under Armour made big splash signings starting in 2014 with Notre Dame.
This post was edited on 8/8/18 at 12:13 pm
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Posted on 8/8/18 at 12:15 pm to FairhopeTider
quote:
Was hoping we were close to getting the Jordan brand.
frick that!!
Posted on 8/8/18 at 12:16 pm to FairhopeTider
I looked this up last week and I thought our contract ran out in 2018 but we did a one year extension to put it at 2019.....
Posted on 8/8/18 at 12:17 pm to FairhopeTider
quote:
Was hoping we were close to getting the Jordan brand
I think the dunking guy looks dumb on football uniforms
Posted on 8/8/18 at 12:22 pm to A-TOWNUAFAN
quote:
I looked this up last week and I thought our contract ran out in 2018 but we did a one year extension to put it at 2019.....
According to the article, its now 2025. Which means the next time the deal is up, there's a good chance either Saban isn't here or the apparel bubble has burst.
Posted on 8/8/18 at 12:24 pm to BlackPawnMartyr
Exactly! A football jersey with a basketball player on it is so odd looking.
Nike had the foresight to get an extension from schools (not just Alabama) knowing it was going to be expensive in the coming years.
Battle didn't look at anyone else because Alabama and Nike are a brand together, and I think that was his point.
Sure we lose out on 10 mil a year, but we have received so much from other revenue generators.
Nike had the foresight to get an extension from schools (not just Alabama) knowing it was going to be expensive in the coming years.
Battle didn't look at anyone else because Alabama and Nike are a brand together, and I think that was his point.
Sure we lose out on 10 mil a year, but we have received so much from other revenue generators.
Posted on 8/8/18 at 12:31 pm to Bamadoc
quote:
Exactly! A football jersey with a basketball player on it is so odd looking.
As is singing about the Rose Bowl during a basketball game. (I'm joking).
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Battle didn't look at anyone else because Alabama and Nike are a brand together, and I think that was his point.
I'd say we are a brand by ourselves. I get the importance of Nike, but it's not like we're Oregon. In any event, we were coming off back to back titles and were (and still are) the biggest brand in College Football. If we were ready to lock into a long term deal 5 years before the contract was up, you'd think we'd at least entertain another offer just to have leverage with Nike.
quote:
but we have received so much from other revenue generators.
Like increasing ticket prices, selling tailgating spots, showing ads instead of scores in BDS, and making students pay $400 for parking spots.
This post was edited on 8/8/18 at 12:54 pm
Posted on 8/8/18 at 12:35 pm to FairhopeTider
Yea, this seems like a pretty shortsighted I just want to get it done strategy. And from a guy whose entire post-coaching life was in collegiate brands and marketing................seems like a get it over fastball.
Disappointing.
Disappointing.
Posted on 8/8/18 at 12:43 pm to SummerOfGeorge
quote:
I just want to get it done strategy.
Which seems to have been a trademark of the Bill Battle era at UA if you really drill it down.
This post was edited on 8/8/18 at 12:44 pm
Posted on 8/8/18 at 12:48 pm to FairhopeTider
quote:
As is singing about the Rose Bowl during a basketball game. (I'm joking).
I'm not.
Posted on 8/8/18 at 1:07 pm to pvilleguru
If we wanted to we could pressure Nike to renegotiate in good faith. Many oversea soccer clubs do this.
We won't because Battle is probably just happy to be there and doesn't want to rock the boat.
We won't because Battle is probably just happy to be there and doesn't want to rock the boat.
Posted on 8/8/18 at 1:11 pm to YStar
quote:
We won't because Battle is probably just happy to be there and doesn't want to rock the boat.
Battle isn't there anymore.
Posted on 8/8/18 at 1:24 pm to pvilleguru
This deal reallllly needs to be renegotiated if possible. That's horrendous.
We're potentially missing out on $15 million dollars a year. Looking out to 2025, thats $120 million in lost revenue
I don't know how anyone could see those figures and say, "so what?"
We're potentially missing out on $15 million dollars a year. Looking out to 2025, thats $120 million in lost revenue
I don't know how anyone could see those figures and say, "so what?"
Posted on 8/8/18 at 1:28 pm to SummerOfGeorge
quote:
Disappointing.
Why is this disappointing? I admit to being completely clueless how any of the sponsorship stuff effects fans outside of apparel, etc.
Is there a genuine reason to be disappointed in the deal or is it more about bragging rights?
Posted on 8/8/18 at 1:35 pm to SECFan413
quote:
Why is this disappointing? I admit to being completely clueless how any of the sponsorship stuff effects fans outside of apparel, etc.
Alabama is one of the top brands in college sports and we are in the middle of a dynasty. Our games are some of the highest rated every season and our apparel sales continuously rank in the upper tier.
It could be a case of bad timing and hindsight, but its disappointing that Alabama's contract is ranked as low as it is in the market and the school could've had a $100 million more in the bank. Some analysts believe that if we had renegotiated this year when the original contract came up, the contract would've set the market.
This post was edited on 8/8/18 at 1:37 pm
Posted on 8/8/18 at 3:53 pm to FairhopeTider
I get that side of things, but why should a fan care?
I am just curious.
I am just curious.
Posted on 8/8/18 at 4:01 pm to SECFan413
Why should a fan care why the university had an extra $100m to spend? Is that the question?
Posted on 8/8/18 at 4:06 pm to pvilleguru
Ok. New plan. Go to Nike and tell them you want to renegotiate. Tell them to either renegotiate, or donate $100m to build a new basketball arena. If they donate to the arena, we'll give them the naming rights. If they refuse to do either of those, then we'll refuse to sign a new contract with them in 2025.
Posted on 8/8/18 at 4:13 pm to SECFan413
quote:
I get that side of things, but why should a fan care?
I am just curious.
You'd like to think it would help slow the rate of increase of ticket prices and Tide Pride fees, but we all know that would just be a fantasy.
Posted on 8/8/18 at 4:23 pm to SECFan413
quote:
Why is this disappointing?
Because we basically punted on 10s of millions of dollars while our value is at its peak.
This post was edited on 8/8/18 at 4:24 pm
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