AJC Article on Value of Adidas Deal

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http://www.myajc.com/sports/college...agreement-with-adidas/hebjv2I3PIBh8K6b2QwVdJ/

As I expected, low on cash, high on apparel, which can be significantly overpriced to help inflate the size of the deal. And that is totally fine. Just get on to something cool and get off the garbage. I don't think when you are getting $18 million worth of apparel at Tech over the next several years you can expect them to also pay you millions in cash. We ain't that kind of place, so the structure of this seems fine to me. Thumbs up!
 

a5ehren

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Also plenty of chances to get more cash value based on on-field performance. I suspect that this is the template deal for mid-range P5 schools going forward.
 
AlabamaBuzz

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Once again, we really don't have a lot to leverage these companies with. Our fanbase is not large, and so many of our alums, especially the younger ones, could care less about football. There is no easy way to start trying to increase our "non-alum" fanbase, and I am glad I haven't been given that as a goal, because I have thought about it time and again, and I cannot come up with anything tangible that I think would work in the near term.

I am glad we will be changing away from Russell, and for me personally, I am hoping that I like the new Adidas GT logo products. More gold and less blue would me my mantra, but of course, it needs to be the right shade of gold. :)
 

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travgt01 said:
What are the details? Ken's stuff is behind the paywall now.
Click to expand...

Use Chrome and open up an incognito window and you can get it. $200k/year in cash. $3M/year in apparel. 6 year deal. Cash is lower than average of P5, but apparel is higher than average of P5. Chance of extra cash based on performance incentives.
 
BCJacket

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travgt01 said:
What are the details? Ken's stuff is behind the paywall now.
Click to expand...

Tech will receive an average of $3.11 million annually from Adidas in cash and product over its six-year contract.

The school will receive $200,000 annually in cash over the six-year contract that begins July 2018 while the allowance for gear will average $2.91 million, beginning with $3.05 million in the 2018-19 academic year. (Tech is receiving $950,000 in cash and $1.35 million in apparel from Russell Athletic in the final year of their contract.)

The cash “retainer fee” will increase annually by $1 million if the Jackets win a football national championship, $500,000 if they win the ACC and $250,000 if they appear in the ACC title game two years in a row. The retainer fee will be adjusted by $450,000 if the team wins nine games in a row in back-to-back seasons.
 
AlabamaBuzz

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travgt01 said:
What are the details? Ken's stuff is behind the paywall now.
Click to expand...

Let me see if I can summarize:

  1. From a $$ standpoint as it relates to direct cash given to GT each year under the contract, it won't be a very large sum, and it is pretty much at the bottom tier of P5 schools. (actually less than Russell is paying us in the last year with them)
  2. From a $$ standpoint as it relates to the actual gear the sports teams can expect, it is a pretty generous level - coaches and players should expect to have everything they need, and of course, it is hoped the quality of the product will be top notch
  3. There are incentives built in where Adidas would pay GT more straight cash $$ IF they win a National Championship, ACC Championship, or play in the ACC championship 2 years in a row - it is also increased if the team has back to back seasons with at least 9 wins.
  4. Nike really was not interested in GT at all, UA showed minimal interest, so really GT was not in a place of leverage to try to hold out for more $$ from Adidas.
  5. It is hoped that Addas will help us with "perception" which can lead to improved recruiting which in turn will give GT more of a chance to get the incentive $$ in the future

I probably left a lot out, but this is just a summary of what I remember.
 
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travgt01

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bwelbo said:
Use Chrome and open up an incognito window and you can get it. $200k/year in cash. $3M/year in apparel. 6 year deal. Cash is lower than average of P5, but apparel is higher than average of P5. Chance of extra cash based on performance incentives.
Click to expand...
That trick doesn't work anymore. AJC has surprisingly gotten smarter.
 
Cam

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This is an interesting deal. I wonder how we'll look to compensate for the lost $750k in straight cash. Granted, a lot of that money probably went towards getting shoes for the sports, which now come directly from adidas through the apparel portion. I think we've got a good shot at achieving one of these incentives. Back to back 9 win seasons should be possible considering we had 9 last year and were a little luck away from 8 wins this year with a chance at 9 with a bowl game. Either way, I'm very excited about the program moving forward. Elevating a brand is a large part of what caused Stanford's transition to prominence.
 

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Lavoisier said:
Sounds like we're betting on ourselves with the $$ bump tied to performance.
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Dont know if I would go that far. It is a nice incentive. We did not have much leverage here so it was probably more of a case of getting the best deal we could. It was mentioned that this is a new way to structure an apparel deal.
 
SidewalkJacket

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The switch in brands hasn't gotten much tread on here lately, but it's good to see some details come out.

I've said this before, but I couldn't care less what adidas does to our colors or style, and if you want success for GT you shouldn't either. If you coach 18 year olds, you know that when adidas busts out some chrome-tinted honeycomb look with blue as the primary color, they're gonna be posting about how fye they are and watching our game that night to see them on TV. It doesn't matter whether you think that should matter or not. It does.

So bring on the chrome. Bring on the honeycomb. Bring on the blue. Just bring on the three stripes so I can stop hearing from kids at my own high school how trash our unis are, and start seeing recruits posting their pics in our new gear!!!
 
MidtownJacket

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Yeah, disappointed to see just how low the cash is but agree with the board that the gear piece is impressive.

Hopefully we get some movement so we can include some of the cash bonuses with victories and title appearances.

Also can’t wait for July so I can get some of that three stripe SWAG


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THWG

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This is a really good deal for Tech imo. Don't underestimate how the amount of gear that players receive will help in recruiting. I'm not expecting it to help reel in 5 stars left and right, but I seriously think that it will help land some better recruits.
 
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