Apparel deal to run until June of 2016
South Carolina is now an Under Armour school, through and through.
The board of trustees approved a new sponsorship contract with Under Armour last Friday, making it the "head-to-toe" provider of equipment and apparel for USC's athletic teams, coaches and staff. The contract will run for six years through June 30, 2016.
The term of the agreement can be extended automatically for four additional years after 2016 unless either party provides 120 days' notice prior to the expiration of the initial 6-year term.
Under Armour will pay the athletics department an annual rights fee, which begins at $900,000 per year and escalates each year until the final year of the contract, when Under Armour will pay $1.2 million per year. The rights fee will increase by $25,000 any year that the apparel sales of USC apparel to the public results in USC being in the Top 15 nationwide, as monitored by a collegiate licensing company.
The contract also provides that the athletics department will receive a product allowance from Under Armour each year of the contract. That product allowance will allow the department to purchase for free equipment and apparel. USC can buy up to $950,000 for free the first year, and the allowance escalates each year until the final year of the contract, when the allowance will be $1.1 million.
Under Armour will also pay the department bonuses based on the various teams for things such as national championships, BCS bowl game appearances, non-BCS bowl game appearances and SEC Championship Game appearances.
Additionally, Under Armour will be obligated to pay $125,000 annually for the first three years and $150,000 annually for the last three years promoting and marketing the success of USC teams. In exchange, USC pledges its teams will wear and use Under Armour products exclusively at games, practices and various speaking engagements.
There are obligations for USC coaches to make appearances on behalf of Under Armour up to twice a year. Under Armour will also be given ticket and parking privileges for various USC sports.