FSU's contract with Nike is worth $50 million over 10 years, according to report

So let me summarize this issue:

*FSU had a person with NO experience in business and a felony record handle a contract with a multi billion dollar, international company.

*This person basically changed the logo with very little input outside a small, powerless committee he controlled (no matter what he says to the contrary).

*The contract looks good up front, but will be bad on the back end.  Mainly because A) He doesn't know what he is doing B) He was looking to make himself look good now and not worried about 10 years from now.

*FSU allowed this contract to go through without an experienced Athletic Director in place.

I can't imagine what FSU would do with a real A.D. like Louisville has.  Some day, but for now, FSU is too busy hiring friends, family, and BBQ buddies instead of professionals.


The contract will likely be outstripped by more lucrative contracts at other schools

"FSU renegotiated its contract with Nike in June, signing a deal worth roughly $50 million over 10 years.
While it seemed like a good deal at the time, the contract will likely be outstripped by more lucrative contracts at other schools, according to a report from Warchant.com.
The extension was negotiated during former athletic director Randy Spetman’s tenure, but it was signed on June 27, weeks after he had been removed from his position and months before Stan Wilcox took over as the school’s athletic director.
The contract stipulates that Nike will provide FSU an average of $1.45 million annually and $2.9 million worth of supplied product each year for five years, with Nike having the option to implement a five-year extension through 2022-2023, according to the report.
FSU also received a $3 million signing bonus. The contract, according to the report, also gives Nike rights to consult and develop a new logo and uniforms for the university as its official apparel provider, but the university still has to approve the design. FSU released a new logo and uniforms in April.
The downside with the extension is that FSU is essentially tied to Nike for the next decade. Contracts with Nike are difficult to break and no one from the university can negotiate with other apparel provider during the term of the contract and for the following 90 days after the contract's conclusion. Other schools have contracts that extend that period to 180 days, according to the report.
Because of that, FSU’s current contract – which is favorable for the time being – will be less significant when compared to new contracts signed by other schools in the next five or 10 years. FSU’s value is at an all-time high after winning a national title, but renegotiating is difficult because of Nike’s lengthy hold on right of first refusal."