Report: Penn State felt they were 'not a priority' at Nike, sparking Adidas swap

On Sept. 2, Penn State announced it is ending its longtime partnership with Nike and switching its apparel to Adidas. According to a report from the Sports Business Journal, Penn State felt under-appreciated by Nike.

“The school did ‘not feel like a priority’ to long-time partner Nike,” the Sports Business Journal reported. “Penn State ‘understood Oregon would be treated differently’ because Nike co-founder Phil Knight is an Oregon graduate. However, the ‘preferential treatment’ of other programs within the Big Ten ‘became a much bigger issue.’

SUBSCRIBE to the On3 NIL and Sports Business Newsletter

“Penn State ‘felt it was beneath not just’ Oregon, but ‘also Ohio State and Michigan in the pecking order with Nike.’ … Penn State ‘requested to do multiple program-specific projects that Nike denied.’ Sources said that Penn State ‘requested to wear the gold swoosh on their jerseys for the College Football Playoff semifinal against Notre Dame, much like Ohio State had, but it was denied.’ When the school ‘wanted to make Saquon Barkley-branded shoes, it was denied until it became an option as part of the most recent round of negotiations.'”

PSU had been partnered with Nike since 1993. It’s only the latest school to switch to Adidas. Tennessee made the change in August after spending over a decade partnered with Nike.

As part of Tennessee’s deal with Adidas, the school will reportedly receive between $15 to $20 million annually from the apparel company for NIL purposes. Per On3’s Pete Nakos, PSU is expected to receive a similar deal from Adidas.

While Nike lost Tennessee and PSU this past month, it gained Auburn and South Carolina. The two SEC schools were previously partnered with Under Armour. Penn State is seemingly excited about its new partnership with Adidas.

“Penn State Athletics has been blessed with incredible partners throughout our history, but today, we step into a bold new era,” Penn State athletic director Pat Kraft said in a release. “From the field to the court, the mat to the pitch, this partnership goes far beyond uniforms, it is unlike anything else in the marketplace. adidas is making an unprecedented commitment to Penn State: delivering record investment in our department, groundbreaking NIL and marketing opportunities, and access to technology and innovation that no other program can match.

“This agreement sets a new industry standard, fueling championship performances, empowering our student-athletes to grow their personal brands, and creating unmatched platforms for them to shine on the national and global stage. Together, we’re building something that will transform what’s possible for Penn State Athletics and for every student-athlete who wears the Blue & White.”