Dive Brief:

• Nike signed a deal to supply the University of Michigan’s teams with athletic gear until 2027, with an option to extend the contract until 2031. 
• The University of Michigan’s M Den retail stores will be stocked with official Nike merchandise beginning with the 2016 school year. 
• Incumbent supplier Adidas has been losing market share in North America to Nike and relative newcomer Under Armour. 

Dive Insight:

Adidas has lost one of its biggest college partnerships to longtime rival Nike. Nike will supply the University of Michigan’s teams with apparel starting next year, as well as a substantial amount of official Wolverines fan gear sold in the Big Ten school’s M Den stores and e-commerce site.

The deal is another blow to manufacturer Adidas, however, which has going head-to-head with Nike in seeking athletic partnerships like this one to shore up its business. Just last month, Adidas lost a bid to supply uniforms to the National Basketball Association to Nike. Nike is also encroaching on Adidas’ primacy in soccer with sponsorship of the winning U.S. Women’s National Team in the Women’s World Cup last month.

While Adidas has seen sales of its casual and fashion footwear grow steadily (recently inking an endorsement deal with rapper Kanye West), its share of the performance footwear and apparel market has been slipping. While it doesn’t yet have a shoe brand, Under Armour has taken the No. 2 spot in apparel behind Nike.