Nike Makes Waves On College Campuses

by Talk Business & Politics ([email protected]) 70 views 

Any Hog-caller worth his (or her) plastic snout probably knows the University of Arkansas last year signed a five-year deal with Nike, effective July 1.

What that means is all 19 Razorbacks sports teams will wear gear provided by Nike.

What most sports fans probably missed on April 9, however, was the University of Wisconsin’s decision to end its licensing agreement with Nike. The separation stemmed from what Wisconsin deemed Nike’s failure to adequately address problems caused by the closing of two Honduran factories in January 2009.

Specifically, Wisconsin objected to the non-payment of severance – estimated at more than $2 million – to workers at factories under contract with Nike to produce collegiately licensed apparel. Wisconsin estimated it gained $49,000 in royalties from Nike items in 2008-2009.

And while we’re sure Hog fans no doubt have sympathy for the Honduran workers, we wonder if they’ll care enough to resist new, Swoosh-adorned T-shirts, sweatshirts, etc. come football season.

Our best guess? Nah.

For the record, Nike has owned the top spot in the Collegiate Licensing Company’s collegiate apparel royalties rankings. The shoe, apparel and equipment giant also reported record revenues of $19.2 billion – a 3 percent increase year-over-year – for the fiscal year ending May 31, 2009.