IU exploring options for more lucrative apparel contract

BLOOMINGTON — IU appears set to benefit from the escalating college athletic apparel war among Adidas, Under Armour and Nike.

Indiana's apparel contract, signed with Adidas in 2008, is set to expire next year and the department is exploring its options.

"This is something that we've been preparing for and working through for a long time," said Jeremy Gray, IU's associate athletic director for strategic communications and fan experience. "We are very, very deep in the process, and we took this as an opportunity to look at different options.

"That's not to say we're not happy with Adidas. We've been happy with Adidas. But we took this opportunity to feel things out."

The 2008 contract, an extension of a relationship with Adidas that began in 2004, will pay the Hoosiers $21 million over its eight-year lifespan. But given the breadth and depth of commitment required from apparel companies — who supply everything from uniforms to shoes to outerwear and accessories — Indiana's next contract will need to be negotiated well before the current one expires.

Apparel contracts have grown fatter and fatter in recent seasons. The gold standard is the $90-million, 10-year deal Under Armour dangled to pull Notre Dame away from Adidas in 2014.

Nike, however, already counts Georgia, Alabama, Kentucky, Michigan State, Florida, LSU and Oregon among its clients, and just pulled Tennessee and Michigan away from Adidas.

Michigan's Adidas contract, one of the richest public-school deals in college athletics, paid in excess of $8 million a year. It's not clear what the new Nike deal, which goes into effect next year, will pay.

Whether Indiana has the same brand power as Michigan or Notre Dame — schools with more successful football programs, as well as basketball success — remains to be seen. IU pulled in just shy of $3.8 million from Adidas last season.

The department enjoys significant benefits from the high profile of its men's basketball program, which often generates big television ratings and is appealing for branding purposes to apparel sponsors. IU's candy-striped pants are one of college athletics' most popular school-specific items, and Indiana's alumni base is one of the largest in the country.

"We feel good that providers or potential partners have a good understanding of the size and passion of our fan base," Gray said.

The influence of shoe companies in basketball recruiting is somewhat overstated, but Nike's power and brand in that arena are also undeniable. The Elite Youth Basketball League, sponsored by Nike, is considered by some the elite grassroots circuit in America. Indiana has had little trouble recruiting from Nike-sponsored programs under coach Tom Crean. Victor Oladipo, Troy Williams, Robert Johnson and James Blackmon Jr. are among the players the Hoosiers have pulled from such teams in just the last five years.

Whatever Indiana's final choice, the going rate for apparel deals has increased dramatically since IU's last renewal. The Hoosiers should be able to improve their yearly revenue from whatever company they sign with in 2016.

"We believe, as we come to a conclusion, we're going to have a partnership that's good for IU, our student-athletes and whoever our partner is," Gray said.

Follow Star reporter Zach Osterman on Twitter: @ZachOsterman.