Why do we stay with Russell Athletic?

[dtm1997]

Well I guess what you are saying is that Nike will pay GT 8 Million a year over 10 years??? 80m?? If that is the case why didn't Nike beat out RA back in 2008 and pay us 2.5M??

The facts aresimple if Nike wanted GT they would have already had us in 2008, however they opted not to sign us, or GT opted to take more cash from RA! Why did Nike decide not to pay us 2.5M to 3M than, becuase they already sell items in the Atlanta Market, and they do not think giving GT 2.5M in 2008 was a good ROI???

Nike & Under Armour aren't trying to sell GT gear. They're trying to sell gear, period. I agree that Nike doesn't need GT for the ATL market because of UGA, but we make an attractive marketing vehicle for Under Armour in a strong media market with ACC exposure.

Back in 2008, the political implications of GT ties to Russell (execs, founders, etc.) existed. Today, as a company owned by Berkshire Hathaway, those go out the window.

Also, there's been massive inflation in media properties, which this is at the end of the day, an advertising vehicle. Nike & UA are in an arms race for mind share. For that reason, the price will be bid up among them. Not because we're only worth so much, but because they don't want the other to get a media asset.

 

[GTFLETCH]

Nike & Under Armour aren't trying to sell GT gear. They're trying to sell gear, period. I agree that Nike doesn't need GT for the ATL market because of UGA, but we make an attractive marketing vehicle for Under Armour in a strong media market with ACC exposure.

Back in 2008, the political implications of GT ties to Russell (execs, founders, etc.) existed. Today, as a company owned by Berkshire Hathaway, those go out the window.

Also, there's been massive inflation in media properties, which this is at the end of the day, an advertising vehicle. Nike & UA are in an arms race for mind share. For that reason, the price will be bid up among them. Not because we're only worth so much, but because they don't want the other to get a media asset.

I hope you are correct, UA has Auburn and just signed Georgia State, seems odd they would then give us a great deal.

I do aggree with most posters that we may get a better deal than WSU, however I disagree that Nike/UA will give us 5M, but who knows maybe I am wrong. Below is the Oregon State Nike Contract 8 year deal (signed in 2012 runs thru 2020) 17M
Started at $2.047 million in product. The amount escalates by $50,000 each year, capping in 2018-19 at $2.347 million in product.

This seems like a deal that Nike may offer GT
Link
http://www.oregonlive.com/beavers/index.ssf/2013/03/oregon_state_releases_details.html

 

[augustabuzz]

I hope you are correct, UA has Auburn and just signed Georgia State, seems odd they would then give us a great deal.

I do aggree with most posters that we may get a better deal than WSU, however I disagree that Nike/UA will give us 5M, but who knows maybe I am wrong. Below is the Oregon State Nike Contract 8 year deal (signed in 2012 runs thru 2020) 17M
Started at $2.047 million in product. The amount escalates by $50,000 each year, capping in 2018-19 at $2.347 million in product.

This seems like a deal that Nike may offer GT
Link
http://www.oregonlive.com/beavers/index.ssf/2013/03/oregon_state_releases_details.html

A 4 to 5 year old bench mark in a fast moving market?

 

[BigDaddyBuzz]

We will get a good deal, I'm not worried about this at all. Still think it's either UA or Nike. I would have given the edge to UA but I think CJP is really pushing for Nike.

 

[dtm1997]

A 4 to 5 year old bench mark in a fast moving market?

This.

You can't compare 5-8 year old data to what's happened in the past 12-18 months, while focusing on data points that aren't comparable to us (small market PAC-12 & Western Kentucky vs. big market ACC). You also can't compare what say Texas & UCLA recently signed for.

I'm not saying we'll get as much (we may have if we'd have signed coming off of the Orange Bowl), but the recent comps are Cal (large market PAC-12), Wisconsin (flagship state school/B1G), & Auburn (1 of 2 big SEC state schools).

 

[Tdippp]

I hope you are correct, UA has Auburn and just signed Georgia State, seems odd they would then give us a great deal.

So what you're saying is that GSU is a bigger, more well known school in sports and Academics in Georgia and the nation than Tech?

 

[GTFLETCH]

So what you're saying is that GSU is a bigger, more well known school in sports and Academics in Georgia and the nation than Tech?

No... What I have said is that UA may have told AD Bobblehead Bobinski that there UA gear s not selling to support a multi-million dollar contract and thus lowballed GT and that Nike has said they would pay GT what they are paying WSU or Oregon St (2.2M) (Nothing close to what they pay UGA) and thus if we lose the RA deal and the 2.3M plus per year I hope that Adidas will sign us to 2.5M to 3.5M a year. I have heard RA was willing to go up to 5M per year, but I guess everyone is hell bent on taking less money and leaving RA.

So it would seem to me that since UA & Bobble head has spoke, UA went with GA State at 400K a year it seems like a good move for UA!

I really hope the new AD can get Nike to pay us what Clemson gets 2.8M, but I am thinking that Adidias may be willing to get us at 2.5M as that is what they have Mississippi St for. Below is a link from July 2016 with the top deals. Our RA deal is at 2.3M and is ranked at 47. We could almost breakeven if we get a WSU nike deal as it will start about 2.2M and rise... So with a new AD we may be able to keep the same income flow, just not increase it like some teams have recently.

Link
http://www.forbes.com/sites/carlybe...le-college-sports-apparel-deals/#367cff046087

 

[CuseJacket]

Utah athletics signs 10-year, $65 million extension with Under Armour

The Utes announced a $65 million agreement with the Maryland-based outfitter through 2027. The Tribune reported last month that the two sides were in the "late stages" of a deal — the finalization will keep the program as one of three Pac-12 schools clad in Under Armour for at least the next 10 years.

The contract provides Utah with up to $48 million in apparel, $11.6 million in rights fees, $1.5 million to the scholarship fund, and $3.9 million in "marketing, sponsorship and licensing opportunities," according to details released by the university. Utah’s sports teams can also earn more than $2 million annually in performance bonuses.

It’s a significant increase from Utah’s current deal, which compensates Utah for $1.8 million in apparel and $600,000 in rights fees for the 2017 fiscal year.

 

[BigDaddyBuzz]

I believe our deal with UA would be better than what Utah got. That would be big!!!! I believe only BC has UA in the ACC. You know they will pay big $ to get another ACC team.

 

[dtm1997]

I believe our deal with UA would be better than what Utah got. That would be big!!!! I believe only BC has UA in the ACC. You know they will pay big $ to get another ACC team.

UA also has Notre Dame, but that's a different animal relative to an ACC property.

 

[JacketFromUGA]

UA also has Notre Dame, but that's a different animal relative to an ACC property.

They can get 2 fanbases angry at them for the wrong shade of gold.

 

[YlJacket]

I believe our deal with UA would be better than what Utah got. That would be big!!!! I believe only BC has UA in the ACC. You know they will pay big $ to get another ACC team.

I thought they were the ones behind getting MD OUT of the ACC? Why would they now pay us big to get back in?

 

[GTFLETCH]

I would be all for UA paying GT 65M for 10 years... However with Auburn sporting UA and now GA State sporting UA I am not so sure that UA is coming at Tech.

Question, UA has Utah, who is the closest school that sports UA to Utah?

 

[kg01]

I thought they were the ones behind getting MD OUT of the ACC? Why would they now pay us big to get back in?

I would be all for UA paying GT 65M for 10 years... However with Auburn sporting UA and now GA State sporting UA I am not so sure that UA is coming at Tech.

Question, UA has Utah, who is the closest school that sports UA to Utah?

I wonder if they see it like an arms race of sorts. Trying to lock down whole leagues or whatever in addition to media markets.

 

[dtm1997]

I wonder if they see it like an arms race of sorts. Trying to lock down whole leagues or whatever in addition to media markets.

Ding ding ding!!!! Give this man a cee-gar!!!!

 

[BigDaddyBuzz]

Auburn and GSU have no bearing whatsoever on UA coming after GT. With only 1 school in the ACC and ND for Hoops being the only ones wearing UA - they would kill to get another team in ACC wearing their gear.

 

[IronJacket7]

Pastner is a Nike guy, our AD is coming from a Nike School. Nike is gonna push hard for an ATL market now since GSU is with Under Armor. I really see GT going with Nike. Under Armor is a step up from Russell but a step down from Nike. You guys never know, CPast might cook something up with the AD and GT will be rocking Jordan uniforms.

Could be true. When I went to the Clemson game every GT shirt and hat I saw on the rack was UA. Or at a minimum 90%. UA may push harder than Nike.

 

[kg01]

Ding ding ding!!!! Give this man a cee-gar!!!!

Hey, the sun shines on a blind squirrel's behind every once in a while .... wha?

Seriously though, it's gotta be like the old sneaker wars when Reebok, adidas and Nike would vie for certain NBA stars to wear their shoes. It's still like that today but scaled up tremendously.

 

[Techster]

GA State's UA deal would have no bearing on GT's UA deal.

1: GT is on a different level in terms profile and visibility. You'll find GT football and basketball, the two big $$$ sports in college nationally televised throughout both seasons. The only way you'll find GA State's game is if you have the special sports package in from your cable/dish provider. Even then, you have to go pretty high up the regional channels.

2: Prestige and Conference affiliations. The ACC has been, and is still considered the premier basketball conference. Football-wise, GT is in a P5 conference, and one that is improving every year. GT will battle marquee opposition on national television, and thus, UA's (or whoever will be our provider) will have their product front and center during those matchups. Being a competitive P5 program brings a premium that's higher than a non-P5 school.

3. Atlanta Market: To give you a local reference, The Atlanta Silverbacks is/will be located in the same Atlanta market as the new Atlanta United MLS soccer team. Yes, they are literally in the same city, but it does not mean they are the same market. We compete for different levels of athletes, different fans, and even different sponsors. I am in no way disparaging GA State, but that's the truth. This is related to #1, and #2...but GT just has more "eyeballs" and our footprint in terms of brand and visibility in Atlanta is totally different than what GA State can bring an apparel sponsor.

 

[mstranahan]

Curiosity.... what does BC's deal look like? They are in a arger media market than us, but same conference and similar national profile in terms of teams' success (or lack thereof). I would think they're a better comparator than Utah or Ga State