Reader Q&A: The Michigan-Nike Sponsorship Contract

The University of Michigan is one of the member institutions in the college athletics groups commonly referred to as the "$100 Million Club," an elite group of schools that generate at least $100,000,000 in annual revenue. A large portion of that revenue comes from athletic sponsorship deals with apparel and equipment suppliers. When the university entered into an athletic sponsorship agreement with adidas that began in 2007, it was not a member of the $100 Million Club. As the contract term progressed, Michigan broke the lofty threshold and continues to do so as its contractual relationship with adidas comes to an end. The deal with adidas was the most lucrative contract at its time, and the deal with Nike was also the most lucrative in college athletics until Nike decided to pay a bit more to the Ohio State Buckeyes.

For me, Michigan's relationship with Nike is a return to all that is good. I grew up wearing my maize and blue Michigan swag with the symbolic swoosh in some visible place. So, when the adidas contract kicked in gear my freshman year, I refused to buy new apparel adidas made with the exception of the annual football t-shirt and, eventually, my NFLPA-licensed #10 Tom Brady jersey. Nike is the big dog in the athletic apparel industry, and it only seemed right that Nike and Michigan, a big dog in college sports, work together.

You asked, and I'll answer. The fun does not stop there, though. This Question and Answer session on this significant contract can show how the sponsorship market has evolved and where changes in the current NCAA "collegiate model" could take place.

Throwing An Octopus (or Another NHL Team Spirit Animal) May Seem Harmless, But It Could Cost You

Jaime, Civil, Municipal, NHLJaime MiettinenApril 19, 2016Fine, Gary Bettman, Octopus, Detroit Red Wings, Arrest Comment

An Update on the State of Michigan's Stance on Daily Fantasy Sports

Although a desired solution may be to have nationwide regulations and oversight, if we take one look at our federal legislature in its current state, there is clearly no way they will clarify the law regarding DFS anytime soon. This leaves states in a tricky position because there is still some uncertainty as to how effective or durable state laws on DFS - if and when enacted - will be. State-by-state laws are the settled on short-term solution to the legality of a growing industry's operations. The law needs adequate clarification as soon as possible.

Many states are taking initiative and pushing legislation regarding daily fantasy sports (DFS) hoping to clarify where the industry operates under the law. Virginia led the way as the first state to regulate fantasy sports with its Fantasy Sports Act, requiring DFS operators to (a) enforce a minimum age of 18 to play, (b) register with the designated regulating department, (c) pay a $50,000 registration fee, and (d) take various consumer protection steps such as securing player data and funds as well as preventing operator employees and their immediate family members from playing. Last week, two more states took large steps. Indiana became the second state to regulate fantasy sports with a law that (a) designates fantasy sports as a game of skill, (b) created a division to oversee paid fantasy sports within the state, (c) mandates a $50,000 licensing fee (though that initial fee could increase in the future) followed by a $5,000 renewal fee, and (d) specifically bans fantasy sports contests involving college football and basketball, which makes sense because betting on college sports is illegal under current federal law. Also, Massachusetts has DFS regulations moving through its legislature that is publically supported by DraftKings and FanDuel and hits big on combating the vulnerable with consumer protections like requiring a minimum age of 21 years old to play and instilling "truth in advertising" standards in addition to those akin to Virginia's protections.

For those in my home state of Michigan, we are left to deal with outdated law and a passive movement dragging its heals holding onto weak proposed legislation that will likely never pass. Senate Bill No. 459, which seeks to legalize fantasy sports in Michigan, is a flop.

How You Can Stick It To The Man & Legally Get Your March Madness Fix

The person who leaked the NCAA Tournament bracket via Twitter 50 minutes into CBS' 2-hour Selection Sunday broadcast is considered a hero, according to various news and social media sources. There would not be all this praise had CBS completed the show as it has in the past - one hour swiftly moving through each bracket without the missed shots (e.g., Charles Barkley awkwardly trying to work with the selection touchscreen board). This frustration with college sports broadcasting contracts comes at a time when society is scrutinizing the ethical viewpoints and practices of those running the college sports world, which adds to the firestorm. One mantra appears to be rising out of the mess - a "stick it to The Man" vibe - and will likely gain additional momentum the next few weeks.

Will Your NCAA Tournament Bracket Be Legal in the State of Michigan?

Saying that the NCAA Tournament and bracket pools do not go together is like saying that I-75 and "10mph over the posted speed limit" do not go together. We know it happens. Law enforcement knows it is the norm. We may or may not realize it stretches legal limits. We do it anyway.

The recent hype over the legality of daily fantasy sports is directing a lot of attention toward relevant state and federal law. With respect to Michigan's point of view on the matter, it gets a little risque. I have written on Michigan's stance on daily fantasy sports as of 2015, but making brackets is a different type of simulation that is also forced to live under an outdated rule.

How does Michigan law view your March Madness tourney bracket?

A Little Ditty on Naming Rights for the New Detroit Red Wings Arena

Olympia Entertainment admitted that it selected a buyer for the Detroit Red Wings' new arena in The District Detroit 50-block area renovation project. Who is it? Who knows! Chris Ilitch, owner Mike Ilitch's son and president and C.E.O. of Ilitch Holdings, disclosed that the formal announcement could come within the next month or so. In the meantime, it may be good to know how naming rights operate so when the announcement is made, we can discuss the deal in an educated fashion and form an opinion on whether it was a smart decision overall.