Josh Heupel reacts to Tennessee switching back to adidas: 'We're fortunate'

After a decade with Nike, Tennessee is preparing to return to its former apparel partner. The school agreed to a lucrative 10-year deal with adidas this week, starting in 2026, which will make the Vols the company’s flagship university.

Josh Heupel shared his reaction to that news this week and acknowledged the impact the agreement will have on UT. Yahoo! Sports’ Ross Dellenger reported the deal includes a multi-million dollar NIL component. Adidas is even working quickly to secure deals with Vols athletes this school year. The new contract doesn’t officially start until next school year.

Heupel said Tennessee is “fortunate” to have such a lucrative opportunity. He also agreed with the excitement around the deal and the long-term effects both on and off the field.

“We’re fortunate,” Heupel said. “Had a partner that wanted to make us their flagship school. That’s going to happen in a lot of different ways and going to be a benefit to our football program, but this athletic department as a whole, too. They had an opportunity to come talk to some of our guys.

“I think everybody’s really excited that, again, we’re going to be the flagship school for them. It’s going to provide a lot of unique opportunities for our players on and off the field.”

How Tennessee’s adidas deal impacts NIL

The NIL component of Tennessee’s deal with adidas – which could be worth at least $10 million, according to Dellenger – is especially important in the post-House v. NCAA settlement landscape. Under the agreement, schools can share up to $20.5 million directly with athletes through revenue-sharing. However, there isn’t a cap on third-party NIL deals, meaning adidas can effectively help with “over-the-cap” opportunities.

“The arms race was originally about facilities,” said Chris McGuire, adidas Vice President of Sports Marketing for North America, while speaking with Yahoo! Sports. “Now it’s gone to rev-share and NIL. We want to make sure we provide opportunities to our partners that are competitive in the marketplace so they’ll have competitive teams on the field.”

If Tennessee athletes sign an NIL deal with adidas, they would be able to wear the company’s products in games once the new agreement gets in place. This year, though, those athletes would have to wear Nike apparel until that deal expires.

Tennessee left adidas in 2014 to sign with Nike, and the amended deal runs through 2026. Through the partnership, the university is due to receive $1.2 million in base compensation in 2025-26 and $4.5 million in annual product allotment.