The NCAA News - News and Features

November 3, 1997

Sponsorship agreement aims for U.S. success in World Cup

Soccer federation signs deal worth about $120 million with Nike

The United States joined Brazil, Italy and the Netherlands in soccer sponsorship October 22 when the U.S. Soccer Federation (USSF) announced a multiyear deal with Nike said to be worth about $120 million.

The 10-year pact will enable the USSF to move ahead with its Project 2010, which has set a goal of winning the World Cup by the end of the next decade.

"What we're ending up with is that we're at the top of what national associations get in sponsorship,'' federation President Alan Rothenberg said. "And if we're not on the top, we're very close.''

Nike, the largest sports shoe and apparel company in the United States, gets a chance to catch up to Germany's Adidas in the soccer market.

Previous Nike deals

In the last two years, Nike has signed sponsorship deals with soccer organizations in the Netherlands, Italy, Russia, South Korea, Nigeria and Brazil. The Brazilian deal alone was worth $200 million.

Neither Rothenberg nor Nike President/Chief Executive Officer Tom Clarke would disclose the amount of the U.S. deal, according to The Associated Press, except to describe it as "significant'' or "lucrative.''

But a federation spokesman confirmed the value of the pact.

"It's a very complex deal,'' Jim Trecker, USSF deputy secretary general for communications, said.

"It depends on how you want to add up the numbers whether you get over or under $120 million. It has many, many components. It's more than a money deal.''

Adjunct to Project 40

Project 2010 emphasizes youth and coaching programs and is an adjunct to the USSF's Project 40, which works in conjunction with Major League Soccer to identify the top 40 teen-age prospects and offer them an alternative to college soccer.

Clarke said $50 million to $60 million has been earmarked for the developmental programs.

Under the new contract, Nike continues as the official and exclusive supplier of uniforms and products like soccer balls to all U.S. national teams.

Nike becomes a sponsor of the soccer federation's major events, and obtains rights to buy advertising time on television broadcasts of the U.S. national team games. Nike may also use the U.S. men and women's national teams in its advertising.