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AUBURN
Auburn has quietly operated this year under a new Under Armour apparel agreement that the university values at $27.45 million in cash and products over seven years.
The extension increased Auburn's value in the agreement to $3.9 million per year. That nearly doubled its five-year, $10.6 million deal with Under Armour in 2005, according to the August 2009 contract extension obtained Tuesday by The Birmingham News through an open-records request.
"We feel comfortable this is probably one of the top 10 deals in the country, so we're very excited about that," Auburn Senior Associate Athletics Director Scott Carr said. "It's hard to know because you never know if you're comparing apples to oranges with reports about different apparel deals."
Published reports place Michigan with the nation's largest apparel contract, an eight-year deal with Adidas valued at $60 million in cash and product plus a $6.5 million signing bonus. North Carolina is believed to have Nike's largest deal at $33.7 million over 10 years.
Oregon, which plays Auburn in the BCS Championship Game on Jan. 10, has an eight-year contract with Nike valued at $22.7 million.
Last spring, Alabama announced a seven-year extension with Nike that the school values at nearly $30 million in cash and product over eight years. Alabama received a $2 million signing bonus; Auburn did not get one when it re-upped with Under Armour.
Auburn's new financial terms began in 2010-11, when its annual rights fee payment increased from $850,000 to $1.65 million. The amount increases to $1.7 million in 2011-12; $1.75 million in 2012-13 and 2013-14; $1.8 million in 2014-15; and $1.85 million in 2015-16, when the deal expires.
Auburn's product allowance from Under Armour will be $1.25 million annually over the next six years, up from $550,000 in 2009-10. Auburn buys products 50 percent off the suggested retail price.
"You want to make sure that you get the product to take care of all your sports teams, and we felt we were able to do that with this deal," Carr said. "And of course, you always look for ways to increase revenue. We felt this was a very fair deal from a revenue standpoint as well."
The new contract no longer requires Under Armour to keep Auburn with the highest rights fee in the company's deals with SEC schools. Auburn had that provision in 2005 as consideration for being the first SEC member to sign with Under Armour, a Baltimore-based apparel and footwear company challenging Nike in the marketplace.
South Carolina signed with Under Armour in 2007 and is currently negotiating a new deal. GamecockCentral.com reported in September the school was finalizing a six-year, $19-million contract.
Under Armour also outfits football teams at Utah, Maryland, Texas Tech, Hawaii, Temple and Boston College. As part of the contract with Auburn, Under Armour must include Auburn in at least two national or regional advertisements.
The extension comes with some higher bonuses for team success. Auburn will receive a $200,000 bonus if it wins the national title in football, up from the previous $100,000 bonus if the Tigers finished No. 1 in the USA Today poll.
Auburn has already earned $130,000 this season on bonuses from Under Armour by reaching a BCS bowl ($50,000), winning the SEC ($25,000), playing in a bowl ($15,000), winning 13 games so far ($40,000). Another $10,000 would be rewarded if Gene Chizik is the American Football Coaches Association's coach of the year.
The men's basketball team would receive a $200,000 bonus for winning the NCAA Tournament, up from $100,000 in the previous deal. Winning the SEC increased from $20,000 to $25,000. Appearing in the NCAA Tournament stayed at $10,000, the same value as the Tigers' coach winning the Naismith Coach of the Year.
Auburn's women's basketball team can earn $100,000 for winning the national title, up from $50,000. Winning the SEC increased from $10,000 to $15,000. Reaching the NCAA Tournament stayed at $5,000, the same value for winning the Women's Basketball Coaches Association coach of the year award.
Auburn's baseball bonuses stayed the same: $25,000 for winning the national title; $7,500 for finishing first or second in the SEC regular season and winning the SEC Tournament; $5,000 for reaching the College World Series; and $5,000 for its coach being national coach of the year by Baseball America.
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