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Wisconsin Board Of Regents To Vote On 10-Year Deal With Under Armour

It appears that Under Armour may be adding a Big Ten power to its growing arsenal. Wisconsin blog Bucky's Fifth Quarter uncovered documentation posted on Wisconsin's website showing that a Board of Regents vote will take place to determine whether the school will sign a 10-year deal with the Maryland-based apparel giant. Some of the key details from the proposal:

The principle provisions of the proposed agreement can be summarized as follows:

• UW-Madison would receive an annual product allotment of Under Armour shoes, apparel and equipment at no cost to UW-Madison, to outfit and equip its 23 intercollegiate teams. Under the existing contract, Athletics received an annual product allotment from Adidas totaling $1,300,000 in year one of the contract, increasing incrementally to $1,375,000 in the final year. Under the proposed Agreement with Under Armour, Athletics would receive $3,300,000 in product during the first year to account for the increased product needs associated with a change in Sponsors. Thereafter, Under Armour will provide Athletics with $2,450,000 in product for year two of the contract, increasing incrementally to $3,050,000 in year ten.

• UW-Madison would receive an annual amount of cash compensation from Under Armour to provide income to Athletics. In addition, UW-Madison would be eligible to receive annual bonus compensation based on the overall performance of the university’s athletic teams. The amount of annual cash compensation made under the existing contract with Adidas varied from $750,000 in the first two years of the term to $800,000 in the last three years. Under the proposed Agreement with Under Armour, Athletics would receive an annual cash contribution of $4 million.

• UW-Madison would receive an annual guaranteed minimum licensing royalty from Under Armour. Under the current agreement, Adidas pays UW-Madison an annual guaranteed minimum licensing royalty of $100,000. In the proposed agreement with Under Armour, that amount increases to $450,000.

• The term of the Agreement would be ten (10) years.

• In Contract Year #1 and Contract Year #2, Under Armour would pay UW-Madison up to $250,000 for total compensation of up to $500,000, to be allocated for the rebranding of University’s athletic facilities and build-out of team areas, including design work and installation.

• In Contract Year #1, Under Armour would pay UW-Madison $150,000 to be allocated toward the rebranding and build-out of retail space in Bucky’s Locker Room for the placement of Under Armour products and promotional materials. • Under Armour would hire at least two University students per Contract Year to participate in Under Armour’s Summer Rookie internship program at Under Armour’s Baltimore Headquarters (“Rookie Program”).

• Under Armour would become the exclusive supplier of accessories, apparel, equipment and footwear to UW-Madison’s 23 intercollegiate athletic teams and their coaches.

• Under Armour would acquire the exclusive right to sell all authentic competition apparel worn by intercollegiate teams and coaches, all replica versions of authentic uniforms, and all performance products.

• Under Armour would receive the exclusive right to the official designation of “Official Outfitter of University of Wisconsin-Madison Athletics,” as well as the “Official Outfitter” of the Teams. In addition, UW-Madison would provide other promotional opportunities and privileges including tickets, parking passes, signage, electronic scoreboard messaging, public address announcements, and website and social media recognition.

• Under Armour would acknowledge its plan of action with respect to human rights issues and allow UW-Madison access to archives and contemporary inspection and monitoring reports for all facilities producing goods for the university.

Wisconsin has been an adidas partner since 2001, a deal that expires next June. The Board of Regents is expected to vote on the Under Armour deal in the new few days.

[Bucky's Fifth Quarter]