Kansas Signs Adidas Extension Despite Role In Hoops Scandal
The Univ. of Kansas yesterday announced it officially signed its 14-year, $196M extension with Adidas, but KU Chancellor Douglas Girod "declined to provide specifics" about what Adidas officials told the school that made it comfortable with the company "after three of its employees who dealt directly with KU were convicted on fraud charges" as part of the college hoops scandal, according to a front-page piece by Chad Lawhorn of the LAWRENCE JOURNAL-WORLD. Girod said that "multi-month discussions led 'our side of the house and their side of the house to put infrastructures in place that we are comfortable with.'" However, Girod declined to say what those were (LAWRENCE JOURNAL-WORLD, 4/25). Lawhorn in a separate piece notes what is "left unsaid is whether KU itself did enough to protect its men’s basketball program from a recruiting scandal that has implicated the families of one former player and one current player." KU AD Jeff Long "declined to be specific when directly asked whether he was comfortable there was nothing more KU could have done to protect the men’s basketball program from the recruiting scandal" (LAWRENCE JOURNAL-WORLD, 4/25).
INSIDE THE DEAL: In Kansas, Matt Galloway reports the new agreement goes through June 30, 2031, with the school receiving an average of $14M annually "through the life of the new deal, which is retroactive" to '17-18. KU and Adidas first teamed up in '05, with the previous deal coming in '13. The extension was first announced in September '17, but the government’s probe into college basketball "slowed the finalization" of the deal. Should KU be "found by the NCAA to have committed an institutional violation, and that ruling results in the elimination of television appearances for either football or men’s basketball, Adidas has protection." The company would cut annual payments by 50% for a football infraction and 25% for a violation in men’s basketball, a "mechanism that would last until the programs return to TV." The agreement also "includes an annual $500,000 contribution from Adidas to the university’s academic end in a student enrichment program" (TOPEKA CAPITAL-JOURNAL, 4/25). In K.C., Jesse Newell notes compared to the most recent six-year deal, Adidas will now pay KU an average of $3.86M more per year in "base compensation," $4.12M more per year in "product allowance, and about $800,000 more per year for marketing." In total, the $196M deal consists of about $91.5M in product allowance, $77.6M in base compensation, $14.2M for marketing, $7.5M for a scholarship fund, about $4.5M in minimum royalty payments and $1.15M for facility improvements (K.C. STAR, 4/25).
BAD LOOK? YAHOO SPORTS' Pat Forde wrote KU re-signing with Adidas is "close to peak shamelessness." It stands to reason that "neither Nike nor Under Armour was going to pay anywhere near as much" and Adidas was "desperate to keep the partnerships with its flagship programs." So, if the "money is right -- and this is one of the largest apparel deals in college sports -- universities will do anything to feed their sports addiction." That KU "chose to announce its renewed agreement with Adidas while the second federal trial is underway" in N.Y. "seems a tad bold" (SPORTS.YAHOO.com, 4/24).
The Univ. of Kansas yesterday announced it officially signed its 14-year, $196M extension with Adidas, but KU Chancellor Douglas Girod "declined to provide specifics" about what Adidas officials told the school that made it comfortable with the company "after three of its employees who dealt directly with KU were convicted on fraud charges" as part of the college hoops scandal, according to a front-page piece by Chad Lawhorn of the LAWRENCE JOURNAL-WORLD. Girod said that "multi-month discussions led 'our side of the house and their side of the house to put infrastructures in place that we are comfortable with.'" However, Girod declined to say what those were (LAWRENCE JOURNAL-WORLD, 4/25). Lawhorn in a separate piece notes what is "left unsaid is whether KU itself did enough to protect its men’s basketball program from a recruiting scandal that has implicated the families of one former player and one current player." KU AD Jeff Long "declined to be specific when directly asked whether he was comfortable there was nothing more KU could have done to protect the men’s basketball program from the recruiting scandal" (LAWRENCE JOURNAL-WORLD, 4/25).
INSIDE THE DEAL: In Kansas, Matt Galloway reports the new agreement goes through June 30, 2031, with the school receiving an average of $14M annually "through the life of the new deal, which is retroactive" to '17-18. KU and Adidas first teamed up in '05, with the previous deal coming in '13. The extension was first announced in September '17, but the government’s probe into college basketball "slowed the finalization" of the deal. Should KU be "found by the NCAA to have committed an institutional violation, and that ruling results in the elimination of television appearances for either football or men’s basketball, Adidas has protection." The company would cut annual payments by 50% for a football infraction and 25% for a violation in men’s basketball, a "mechanism that would last until the programs return to TV." The agreement also "includes an annual $500,000 contribution from Adidas to the university’s academic end in a student enrichment program" (TOPEKA CAPITAL-JOURNAL, 4/25). In K.C., Jesse Newell notes compared to the most recent six-year deal, Adidas will now pay KU an average of $3.86M more per year in "base compensation," $4.12M more per year in "product allowance, and about $800,000 more per year for marketing." In total, the $196M deal consists of about $91.5M in product allowance, $77.6M in base compensation, $14.2M for marketing, $7.5M for a scholarship fund, about $4.5M in minimum royalty payments and $1.15M for facility improvements (K.C. STAR, 4/25).
BAD LOOK? YAHOO SPORTS' Pat Forde wrote KU re-signing with Adidas is "close to peak shamelessness." It stands to reason that "neither Nike nor Under Armour was going to pay anywhere near as much" and Adidas was "desperate to keep the partnerships with its flagship programs." So, if the "money is right -- and this is one of the largest apparel deals in college sports -- universities will do anything to feed their sports addiction." That KU "chose to announce its renewed agreement with Adidas while the second federal trial is underway" in N.Y. "seems a tad bold" (SPORTS.YAHOO.com, 4/24).
