Huskies extend Nike contract

Washington announced Friday it has reached agreement on a 10-year extension of its contract with Nike to be the school's exclusive footwear, apparel and equipment provider.

The deal is worth a guaranteed $35 million, with incentives that could push it to $39 million.

Washington and Nike have had a contractual relationship since 1997. The current five-year deal, which expires July 1, 2009, paid UW about $1.3 million a year in product and money.

"It puts us up with the elite BCS schools, and we are very happy to be there because I think that's our rightful place," said Scott Woodward, UW's acting athletic director. "It's not the top of the top in the elite, but obviously three times better [than the previous deal] is significant."

Some Huskies fans have grumbled that the athletic department shouldn't do business with a company so closely associated with one of Washington's biggest rivals — Nike co-founder and chairman Phil Knight is one of Oregon's biggest donors.

But Woodward said that wasn't a factor in the negotiations.

"The last I saw, the fans and citizens of Oregon fly on Boeing planes, they shop at Costco, and they buy Windows and Microsoft products," Woodward said, referring to iconic Seattle-area companies.

Woodward said the school recently requested proposals for a new contract, and Nike exercised its right of first refusal. A new deal then was struck.

Woodward added that UW coaches were in favor of renewing the agreement with Nike.

Nine of the 10 Pac-10 schools have deals with Nike. The lone exception is UCLA, which is with Adidas.

Woodward said UW will still have "sole discretion" for designing its uniforms, though he said there are no current discussions about doing anything with the football helmets and uniforms. He said there has been a gradual phasing out of the current Dawg logo and that would likely continue, with the block W taking over as the school's main mark.

Upon hearing of the agreement, representatives of the school's Licensing Advisory Committee contacted media to express their disappointment that they were not consulted about the decision and how to best ensure that Nike upholds the school's code of conduct, particularly in regards to fair labor practices.

An athletic department spokesman said the department took the wishes of the committee into account during the negotiations and pointed out that the school has stressed the issue with Nike throughout its previous contracts with the company.

UW spokesman Richard Kilwien said it was "important for people to know we agree with the charge of the committee" and that the school "will work with Nike to make sure fair labor standards are met."