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Wednesday, October 04, 2006

Hokies ink deal with Nike

All Tech teams to use Nike goods exclusively

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Beginning next summer, the Nike swoosh will be seen on every Virginia Tech team.

Virginia Tech athletic director Jim Weaver said Tuesday the Tech athletic department has reached agreement on an eight-year deal with Nike in which the company will provide free shoes, apparel and equipment to all Tech teams. The deal will go into effect on July 1.

Nike will also pay the Tech athletic department an undisclosed sum each year. Weaver refused to divulge the amount because the contract has not been signed. The North Carolina athletic department reaps $200,000 a year from its Nike deal; the Virginia athletic department earns $50,000 annually from Nike.

Weaver also wouldn't comment on the monetary value of the Nike products. UNC gets $18 million worth of products under its deal.

This is the first time Tech has had a department-wide deal with a sporting-goods company, rather than having its high-profile teams strike individual deals and the rest buying what they need from Nike or other companies.

"It gives us greater flexibility with our current budget dollars," Weaver said.

Weaver negotiated with other companies but would not name them. Weaver said Tech will be one of only about 30 schools to have a department-wide deal with Nike.

Weaver has long desired a department-wide contract. He said joining the ACC made the university a more desirable suitor.

"It's a win-win situation," Weaver said. "The kind of exposure that we generate television-wise, both in football and men's and women's basketball, helped. The fact that we have competed successfully in recent years in our Olympic sports I think helped."

The Tech football team already has a deal with Nike; it will be absorbed into the overall contract. Football coach Frank Beamer will keep his individual deal with Nike.

The men's basketball team had a two-year deal with Adidas that expired last season. The men's basketball team will begin using Nike products this winter. The women's basketball team has a deal with Nike in which only some of its sporting-goods needs are met free of charge. That will change under the new deal.

The other Tech teams bought their shoes, apparel and equipment previously. They will now get to use that money for other purposes, such as recruiting and travel.

Tech teams will not only wear Nike game uniforms -- even swimsuits and wrestling singlets will be provided -- but other apparel as well, such as warm-ups, jackets and caps.

Teams will get a "substantial" supply of free shoes, apparel and equipment, assistant athletic director Tim East said. He said if there is an "unusual circumstance" in which a team needs more items than are part of its free supply, it will buy them wholesale from Nike.

Teams will still have to buy any equipment or apparel that Nike does not make.

The university already has a licensing deal with Nike that allows the company to sell Tech apparel to the public. That isn't part of this new deal.

UVa used to have a deal with Reebok that covered all teams but women's basketball, which had a Nike deal. Five years ago, it landed a Nike contract for football, women's basketball and women's soccer. In 2004, the deal expanded to also include five other teams -- men's basketball, men's soccer, men's lacrosse, and men's and women's golf. UVa's other teams still have to buy their shoes, apparel and equipment, but get them at a special price. The deal runs through 2009.

The financial benefit to UVa has been greater than what it gets in that contract. Nike has become UVa's second-biggest retail licensing partner since making the deal, said Virginia assistant athletic director Keith VanDerbeek. That puts royalties into the college's pocket.

In 2001, UNC agreed to a $28.3 million extension of its Nike deal through 2010. The college also receives 10 percent in royalty payments from Nike's sale of UNC merchandise; and $800,00 for the Chancellor's Academic Enhancement Fund, which doesn't involve athletics.

Last fall, Florida State extended its department-wide deal with Nike through 2010, with a renewal option through 2015. The college said the value of the deal was about $34 million.

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