Nike signed a new $26 million contract with and Ohio State that extends
its program with the college another seven years. The agreement went
into effect Aug. 1 and expires July 31, 2014. Nike has an option to
extend the deal by three years.

As the exclusive provider of footwear and apparel for Ohio State's
athletics program, Nike will provide OSU teams with $2.34 million per
year in free products, or $16.4 million over the seven-year period.

“As a completely self-supporting unit of the university, we are
constantly seeking ways to generate new dollars to support our
program,” Ohio State Athletic Director Gene Smith said in a statement
released by the university. “This agreement with Nike guarantees our
student-athletes of the very best product in the industry and allows us
to direct the money we would have spent on footwear and apparel to
other areas.”

Nike also will pay the Ohio State athletics department $1.2 million
annually for the right to be Ohio State's exclusive provider, or $8.3
million over the seven years.

There are bonus payments for football and men's and women's basketball based upon rankings and postseason appearances.

Each year, Nike will pay Ohio State $28,000 for appearances by the
coaching staff and $22,000 for design and safety input from the
coaches. The university also will receive royalties from Nike of at
least $200,000 annually.