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Who Will Make IU's Candy Stripes? Hoosiers Close In On Deal

By Sarah Fentem

Posted July 9, 2015

Indiana University's Athletics Department says it's close to wrapping up negotiations for a new official apparel sponsor.

The current deal with Adidas ends next year, freeing the athletic department to explore partnerships with other brands, such as Nike and Under Armour.

The official outfitter supplies everything from uniforms to gear for the Hoosiers' 24 Division I teams. And brands pay universities big money for those exclusive rights…sometimes as much as $9 million a year.

Galen Clavio, who teaches sports marketing at IU, says having heavyweight brands vie for the contract benefits everyone.

"To me, having three competitors [Under Armour, Nike and Adidas] and ones that are willing to throw money around and raise the stakes in terms of marketing and apparel… it's good for all the parties involved," he says.

Associate Athletic Director Jeremy Gray says it's important to revisit these contracts because the sports landscape is always changing. For example, the creation of the Big Ten Network has upped the stakes when it comes to licensing deals.

"Now we have over 100 events on television," he explains. "That kind of exposure maybe changes the terms of what the arrangement should be between the apparel provider and IU athletics."

He adds that over time, companies' offerings and athletic departments' needs evolve.

"Things change. Companies go out of business," he says. "They might drop entire lines, so you have to maintain flexibility."

Gray says a single point of contact makes things easier on the department when ordering apparel-"it's much easier to have one place you look to provide that than on Amazon.com." But the biggest reason for a sponsorship contract is simple: It brings in a ton of money, which Gray says goes to both the athletic department and Indiana University.

The sponsorships "help us remain self-sustaining," says Gray. "[We're] not taking any tax payers' or tuition or university dollars to operate."

Clavio agrees with Gray. "You need to maximize your revenue streams,and one of the ways you can do that is through apparel."

And he says the Hoosiers bring a lot to the table…whether they win or lose.

IU's "got one of the single biggest living alumni bases in the country" he says. "And that does a lot for you in terms of eyeballs on television and in terms of purchasing apparel."

There's one thing IU Athletics promises they won't ever change: the Hoosiers' candy-stripe pants. And for good reason-the pants have proved to be the best-selling piece of college-specific apparel nationwide.

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