N.C. State will get a lot more than new alternate uniforms in its new apparel contract with adidas.
The school announced a six-year contract extension with the sneaker company to outfit its 23 sports teams on Tuesday. The deal is worth $38.7 million in uniforms, footwear, apparel and financial considerations.
It is a significant upgrade from the three-year contract N.C. State and the German company reached in 2012. That deal was worth about $8 million to the school, which put them among the lower rankings of “Power 5” conference teams.
Apparel deals have skyrocketed recently, with Notre Dame, Michigan, Wisconsin, Texas and Miami all cashing in on new contracts. Wisconsin jumped from adidas to Under Armour for a 10-year deal worth a reported $96 million. Texas re-upped with Nike for a 15-year contract reportedly worth up to $200 million.
N.C. State’s current deal was set to expire with adidas at the end of the 2015-16 school year. The Wolfpack administration had previous ties at the University of Maryland with Under Armour founder and CEO Kevin Plank, but decided to extend the contract with adidas.
The Wolfpack has made the NCAA tournament in men’s basketball four straight years, with two Sweet 16 trips, to improve its brand value significantly since the previous contract negotiation. The football team has qualified for a bowl game in five of the past six years and the baseball team reached the College World Series in 2013.
Adidas has already rolled out new alternate gray, military-themed uniforms for the Wolfpack football team, which it will wear at home against Syracuse on Nov. 21. The football team debuted black uniforms last season and the basketball team has had both black and gray alternate uniforms in recent seasons.
N.C. State’s minimum royalty guarantee also gets a big boost under the new deal. The minimum guarantee will be a total of $1,755,000 and an average of $292,500 per year. The net revenues from N.C. State trademark licensing royalties are used to fund scholarships and support student activities.
The new terms of the contract begin in July and will run through July 2022.
Giglio: 919-829-8938, @jwgiglio