Ohio State is one of the biggest power house schools in the country. They have a well rounded athletic department, and each sport has seen their fair share of success throughout the years. Just a year ago, their football team won the national football championship. Their men's and women's basketball team made it into the NCAA tournament. These sports are considered the revenue generating sports. The football program brought in $65 million revenue in 2014. These are not the only successful teams they have on campus - they are strong in all aspects. Nike has seen the greatness of Ohio State as they had a 20 year deal in place to sponsor the school athletics through the year of 2018. Nike and Ohio State have restructured their deal to $252 million dollars and extended the deal through the year of 2033. This is the biggest sponsorship deal in all of the college athletics. This deal even beats Texas' who just signed a deal with Nike for $250 million.
The Buckeyes will benefit a great deal from this new deal. Ohio State is expected to receive $112 million in Nike products throughout this deal, and at least $103 million in revenue. This deal allows club teams to have discounts on Nike uniforms and equipment. This big deal also provides more scholarships, internships, and Nike gear for kids who are not athletes. This is huge for the Buckeyes because it takes care of more than just the athletes of the school. I think this shows a lot about the university as a whole. They did not make this deal just for the athletes, but to benefit the regular students and club athletes. Ohio State watched the negotiations between Nike and the University of Texas very closely. Once they saw the deal Texas had in place, they gathered their business plan and proposed a deal that was bigger than the deal that was just closed with Texas. Ohio State felt like they were deserving of the biggest sponsorship deal in college, rightfully so, as they have produced year after year in each sport.
Nike will benefit greatly from this deal as well. They are already considered the best apparel company in the world. They are not content with that, however, as they look for more ways to build their brand and increase visibility of their products. Locking up power house colleges such as Texas and Ohio State was a smart move. These schools are constantly on national television, so the more Nike gear they give the schools to wear, the better chance of it being seen by the general public. The Ohio State football team has been the most televised football team in the last 25 years. This school will generate tons of profit and a lot of visibility for Nike. It is a win for both Ohio State and Nike.
Written by Marcus Johnson
General Editor: Macy Marin
Sources
http://www.sbrnet.com.ezproxy.samford.edu/researchrc.aspx?rescode=footat1
http://www.sportsbusinessdaily.com/Daily/Issues/2016/01/15/Marketing-and-Sponsorship/OSU-Nike.aspx?hl=lucky horseshoe&sc=0
http://gamedayr.com/sports/2012-nike-pro-combat-ohio-state-uniforms/
http://solecollector.com/news/2016/01/ohio-state-nike-deal
