AJC Article on Value of Adidas Deal

[awbuzz]

Ok, so I was initially upset at our deal... so I researched other in the ACC... and I actually think we have gotten a decent/solid deal after seeing what some others Colleges have especially knowing that we handcuffed negotiations by announcing to the world we are leaving RA. Below is what I found

Georgia Tech:
Adidas
Total Value: 3.25M
Equipment and apparel: 3.05M
Cash: 200K
6/30/2024

Virginia Tech
Nike
Total Value: 1.9M
Equipment and apparel: 1.625M
Cash: 275K
6/30/2023

Clemson
Nike
Total Value: 2.7M
Equipment and apparel: $2.586M
Cash: 115K
6/30/2023

Virginia
Nike
Total Value: 3.075M
Equipment and apparel: $2.575M
Cash: 500K
6/30/2025

FSU
Nike
Total Value: 4.21M
Equipment and apparel: $2.8M
Cash: 1.4M
7/31/2023

NC State
Adidas
Total Value: 6.4M
Equipment and apparel: $6.1M
Cash: 300K
7/31/2022


Deals being reworked- UNC
University of North Carolina
Nike
Total Value: 3.875M
Equipment and apparel: $3.4M
Cash: 475K
6/30/2018

Kudos to @GTFLETCH
Facts verses hearsay, love it.

NCSt is making out like a bandit.

 

[deeeznutz]

Of those seven incentives, Tech has accomplished one of them (football ACC championship in 2009, since vacated) since 1998. If we win the ACC in football again, we will only get 500K taking us to 750K which is less than the 950K RA paid us this year! It would appear that we have been ripped off. I can here the ugag fans "Bunch of engineering nerds with zero business sense"

Those same uga fans who might criticize our deal were probably mocking the fact that we had Russell before, so they’re really not worth paying attention to.

 

[deeeznutz]

What other sports would UL have that would dictate that kind of revenue difference? I don't think Golf, Baseball, and the Olympic Sports would generate that much of a financial impact.

Agreed on all else, and no, I am not in your brain.

Part of Adidas’ contract with Louisville went towards buying players (at $500K for a 5 star, they can add up to a couple million pretty easily).

 

[gtg970g]

Also consider that GT fields fewer teams than most if not all other schools in the ACC. Apparel money per athlete for GT looks to be pretty high.

 

[Whiskey_Clear]

I don't think leaving Russell earlier would have helped much in the cash deal. Once we were the only P5 school left with them, we lost all leverage with the big three. They knew we were desperate to leave, and didn't exactly need to throw money at us to choose them. We also aren't a big enough name with a big enough fan base to garner the big bucks either. It's our own fault for staying with Russell when the signs were there a decade ago that we needed to leave.

They gave us the best deal at the time.

 

[dressedcheeseside]

Sorry guys, I should have taken a picture. Too focused on buying what the wife sent me to get her at the bookstore

There's an old saying about marriage: "Happy wife, happy life." I'm not so sure about that, but I'm damn sure the opposite is true!

 

[first&ten]

I think you have grossly misrepresented the conditions of ADTS' buyout with OSU and how much Tech helped.




http://www.myajc.com/sports/college...etween-stansbury-tech/WK9eHkuXGctHvIgcJJBgYI/
ADTS owed ~$2.2M when he left OSU. Tech loaned him $1.1M to help out, so he shelled out $1.1M of his own money to come here. Plus, there is a clause that states that if he leaves Tech before his 5 year contract is up, he has to immediately pay back the entire loan plus interest. I'd say anyone willing to pay over $1M out of pocket to take a new job really wants to be there.

From what I posted to what you posted , doesn't seem to be "grossly misrepresented". You may have a few more words used. Good to see there is a "clause" that says TS will owe 1 mil to Tech if he leaves early but,owing and paying someone are two entirely different situations.

 

[senoiajacket]

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.

Is there ever a"per article" royalty that schools are paid for every piece of clothing that has the school logo? Or is it just an annual licensing fee to use the logo?

 

[forensicbuzz]

Ok, so I was initially upset at our deal... so I researched other in the ACC... and I actually think we have gotten a decent/solid deal after seeing what some others Colleges have especially knowing that we handcuffed negotiations by announcing to the world we are leaving RA. Below is what I found

Georgia Tech:
Adidas
Total Value: 3.25M
Equipment and apparel: 3.05M
Cash: 200K
6/30/2024

Virginia Tech
Nike
Total Value: 1.9M
Equipment and apparel: 1.625M
Cash: 275K
6/30/2023

Clemson
Nike
Total Value: 2.7M
Equipment and apparel: $2.586M
Cash: 115K
6/30/2023

Virginia
Nike
Total Value: 3.075M
Equipment and apparel: $2.575M
Cash: 500K
6/30/2025

FSU
Nike
Total Value: 4.21M
Equipment and apparel: $2.8M
Cash: 1.4M
7/31/2023

NC State
Adidas
Total Value: 6.4M
Equipment and apparel: $6.1M
Cash: 300K
7/31/2022


Deals being reworked- UNC
University of North Carolina
Nike
Total Value: 3.875M
Equipment and apparel: $3.4M
Cash: 475K
6/30/2018

Now that we have the Equipment and apparel numbers, divide that by the number of varsity sports teams at each school supported. Georgia Tech has 15 varsity sports (8 mens, 7 womens).

 

[RonJohn]

Is there ever a"per article" royalty that schools are paid for every piece of clothing that has the school logo? Or is it just an annual licensing fee to use the logo?

Are you asking about licensing for retail clothes and items or for the uniforms? This contract is for Adidas to provide around $3 million per year of apparel to GT Athletics. Why would Adidas pay a royalty fee for clothes that it is providing for free to the athletic department? Adidas, Nike, Under Armour, Russel, and many others obtain a yearly license from IMG College Licensing to use GT logos on their fan apparel and other items. All of those have had licenses to produce fan apparel and items for many years. You can get one too if you want. I believe you have to get a separate license for each type of item you want to produce: https://www.clc.com/

EDIT: The fan apparel license does have a royalty fee.

 

[forensicbuzz]

Correction:

Ok, so I was initially upset at our deal... so I researched other in the ACC... and I actually think we have gotten a decent/solid deal after seeing what some others Colleges have especially knowing that we handcuffed negotiations by announcing to the world we are leaving RA. Below is what I found

Georgia Tech: (17)
Adidas
Total Value: 3.25M
Equipment and apparel: 3.05M
Cash: 200K
6/30/2024

Virginia Tech (19)
Nike
Total Value: 1.9M
Equipment and apparel: 1.625M
Cash: 275K
6/30/2023

Clemson (19)
Nike
Total Value: 2.7M
Equipment and apparel: $2.586M
Cash: 115K
6/30/2023

Virginia (27)
Nike
Total Value: 3.075M
Equipment and apparel: $2.575M
Cash: 500K
6/30/2025

FSU (21)
Nike
Total Value: 4.21M
Equipment and apparel: $2.8M
Cash: 1.4M
7/31/2023

NC State (23)
Adidas
Total Value: 6.4M
Equipment and apparel: $6.1M
Cash: 300K
7/31/2022


Deals being reworked- UNC (28)
University of North Carolina
Nike
Total Value: 3.875M
Equipment and apparel: $3.4M
Cash: 475K
6/30/2018

Number of Varsity Sports

Wake Forest (16)
GT (17)
Miami (18)
Pittsburgh (19)
Clemson (19)
Virginia Tech (19)
FSU (21)
NC State (23)
Louisville (23)
Duke (26)
Syracuse (26)
Virginia (27)
UNC (28)
Boston College (29)

 

[senoiajacket]

Are you asking about licensing for retail clothes and items or for the uniforms? This contract is for Adidas to provide around $3 million per year of apparel to GT Athletics. Why would Adidas pay a royalty fee for clothes that it is providing for free to the athletic department? Adidas, Nike, Under Armour, Russel, and many others obtain a yearly license from IMG College Licensing to use GT logos on their fan apparel and other items. All of those have had licenses to produce fan apparel and items for many years. You can get one too if you want. I believe you have to get a separate license for each type of item you want to produce: https://www.clc.com/

EDIT: The fan apparel license does have a royalty fee.

Yes, I was asking if GT gets a royalty for every piece of fan apparel that is sold with the GT LOGO, buzz, or any other copyrighted GT mark. Or do they just get a one time licensing fee?

 

[RonJohn]

Yes, I was asking if GT gets a royalty for every piece of fan apparel that is sold with the GT LOGO, buzz, or any other copyrighted GT mark. Or do they just get a one time licensing fee?

Here are the fees for GT: https://www.clc.com/Clients/Client-Detail.aspx?id=46&t=1

 

[CleanOldFashionHate]

I wanted to post just a clip from 2002 of the uniforms. If you guys take some time to look at the uniforms from 1998-2002, you will see the perfect gold . It has a shine to it. Also, the numerical font is perfect. I have sent a number of videos from those years to Stansbury and others in branding department. What are some your opinions about the color gold and the numerical font from the years ?

 

[DH9387]

From what I posted to what you posted , doesn't seem to be "grossly misrepresented". You may have a few more words used. Good to see there is a "clause" that says TS will owe 1 mil to Tech if he leaves early but,owing and paying someone are two entirely different situations.

Maybe you should re-read your post. You inferred that Tech's contract with ADTS could actually have been worse than Hewitt's, which to me at least, was a serious exaggeration. Your post seemed like a blatant and unfounded attack against ADTS. You implied that he was a potential flight risk for us and that he was too broke to cover his own actions when in fact he tried to get a clause in his OSU contract that would waive his buyout if he decided to go to his alma mater and that he spent over $1M of his own money to make his dream job happen.

 

[awbuzz]

Gear showing up at GTAA - link

One over stat that sticks out to me is that the $2.91M of gear each year is a "list" price valuation. Meaning that it is worth about half (40 -60%) that amount vs buying wholesale.

On top of the $200,000 that Adidas will give Tech annually over its six-year contract, the athletic department was given an annual allowance of $2.91 million to purchase gear. The figure for 2018-19 is $3.05 million. In its final year with Russell, Tech received $950,000 in cash and $1.35 million in product.

Merchandise purchased in the allowance is rung up at retail value. The athletic department can also purchase additional gear from Adidas at wholesale cost.

“There’s things about the contract, and about what we’re going to use that we don’t know yet,” Conner said. “We don’t know how far it’ll go.”

 

[stech81]

Gear showing up at GTAA - link

One over stat that sticks out to me is that the $2.91M of gear each year is a "list" price valuation. Meaning that it is worth about half (40 -60%) that amount vs buying wholesale.

On top of the $200,000 that Adidas will give Tech annually over its six-year contract, the athletic department was given an annual allowance of $2.91 million to purchase gear. The figure for 2018-19 is $3.05 million. In its final year with Russell, Tech received $950,000 in cash and $1.35 million in product.

Merchandise purchased in the allowance is rung up at retail value. The athletic department can also purchase additional gear from Adidas at wholesale cost.

“There’s things about the contract, and about what we’re going to use that we don’t know yet,” Conner said. “We don’t know how far it’ll go.”

If those are the new uniforms ( in my opinion ) those are very plain and ugly.

 

[JacketFromUGA]

If those are the new uniforms ( in my opinion ) those are very plain and ugly.

you mean the proof of concept uni's they sent for promotional reasons?

 

[Supersizethatorder-mutt]

Although I read the article way back when it was originally provided, I checked again just now, and I had no problem accessing and reading it in Firefox; I didn't try Chrome Incognito since it opened in Firefox.

 

[SidewalkJacket]

I wanted to post just a clip from 2002 of the uniforms. If you guys take some time to look at the uniforms from 1998-2002, you will see the perfect gold . It has a shine to it. Also, the numerical font is perfect. I have sent a number of videos from those years to Stansbury and others in branding department. What are some your opinions about the color gold and the numerical font from the years ?

I hated that font and the gold numbers. 2006 font and navy numbers looked great.