Apparel money burning holes in pockets of college athletic departments

As June turned into July in Madison, the University of Wisconsin threw a big, late-night party at Camp Randall Stadium, complete with giveaways, exclusive access to high-profile coaches and a selfie station.

So what were the Badgers celebrating? A championship? A splashy new hire?

Nope, the June 30 celebration was for the school's new athletic apparel agreement: a 10-year, $96 million deal with Under Armour — the latest opulent contract in a year full of them.

Just look at what happened in the Big Ten alone. Last August, Michigan kicked off the big deals, with a Nike signing that would be worth $173.8 million if the school chooses to fully extend it through 2031. As soon as the shock and awe of that agreement wore off, Ohio State negotiated a $252 million package that extended the Buckeyes' contract with Nike by 15 years.

A quarter-billion dollars of Swooshes — whew! One can only imagine what the marketplace might look like in 2020, when the Gophers will be due for a new deal.

The Gophers' current contract with Nike is worth an average of $2.13 million per year through 2020. At a total of $12.78 million over six years, it's a far cry from Wisconsin's party-worthy announcement. But while Minnesota's next agreement might not reach those heights, expect it to follow the growing trend.

"Everyone's deal is bigger than their last deal, so certainly companies are seeing the value that college athletics can provide to them," said Tom McGinnis, Gophers senior associate athletic director and chief financial officer. "They continue to invest. You're starting to see these agreements that go beyond the athletic department that are impacting other parts of campus as well, which is great."

McGinnis said some schools might change apparel companies — Wisconsin was an "Adidas school" for the past 15 years — based on bottom-line figures, or because they feel there is better value in service, or quality of product elsewhere. In some cases, apparel companies make a hard pitch to particular schools, for "brands" that further their own marketing causes.

"We're not just looking at the dollars, but we're looking at what changes companies have made to the equipment they make," senior associate athletic director Chris Werle said. "Now you look at Under Armour's footwear may be improving, so that's something you have to keep an eye on as well."

McGinnis said Minnesota, with Nike since 2007 after previously picking apparel providers on a sport-by-sport basis, is happy with the return it gets, "but certainly, like anyone, we would do our due diligence as we get to the end of our agreement."

But no matter what apparel company the school ends up with and what the deal looks like — selfie stations or not — Werle made it clear that the agreement won't suddenly change the game for an athletic department like the Gophers, one that like many programs is careful about remaining in the black when it comes to its budget.

"Our expenses aren't going anywhere but up," he said, "so the ability for us to find revenue increases where we can is beneficial."

"If you think about the revenue streams in athletic departments, they're pretty limited," athletic director Mark Coyle said. "You have your conference revenue, ticket revenue, your fundraising, your apparel agreements, licensing agreements. If you can maximize those revenue streams, it helps your overall department."