Why Tennessee could make switch from Nike to adidas

With Tennessee’s apparel deal with Nike about to expire, the Knox News’ Adam Sparks reported the university is considering different options. Adidas could be an option, and there are a few reasons why the Volunteers could make the switch.

Tennessee left adidas in 2014 to sign with Nike, and the amended deal runs through 2026. Through the partnership, the university is set to receive $1.2 million in base compensation in 2025-26 and $4.5 million in annual product allotment. The contract expires June 30, 2026.

UT initially signed its deal with Nike in 2014, and the original contract paid the school $7.6 million through 2022-23. However, the amendment increased that figure to 11.6 million over 11 years and increased the scheduled payment to $1.2 million for the final three years of the agreement, starting in 2023-24.

According to the contract, Tennessee and Nike started talks to extend the deal in late 2024, per the Knox News. However, the exclusive negotiating window closed March 30 – meaning the Volunteers are able to explore other options. An agreement could come as soon as this summer so the school and a brand can get ready to create and distribute new uniforms.

As the Knox News noted, player pay is now a major priority for athletics departments as they consider apparel partnerships. Additionally, schools will be able to directly share revenue with athletes if the House v. NCAA settlement receives full approval. The cap is set at $20.5 million for the first year of the agreement, and it would increase by 4% each year as part of the 10-year settlement.

Universities have been seeking other revenue streams in preparation, and the NCAA allowed on-field sponsorships last year when the agreement received preliminary approval. A higher payout from a company such as adidas would also help ease the blow.

Adidas and Nike two of the top brands in college football, and adidas has partnerships in place with multiple big-name programs. The company signed an agreement with Texas A&M in 2022 worth more than $47 million over five years, according to Sports Business Journal, and $3 million per year in base compensation.

Texas Tech also secured a 10-year partnership with adidas in 2024 that includes $50 million in total product allotment. Additionally, former Red Raiders star Patrick Mahomes – who has an endorsement deal with adidas – partnered with the school on an NIL initiative. Six athletes signed with “Team Mahomes” as part of NIL deals.