The University of Kentucky has signed a contract extension with Nike. Over the tenure of the deal, the school’s teams are expected to make a bonus amount if they meet the condition.
Kentucky Signs 10-Year, 8-Figure Deal with Nike
Kentucky athletes have been showing up in Nike gear for almost three decades. The University of Kentucky split with Converse to sign the first deal with Nike in 1997. Since then, the relationship has been a smooth-sailing one, with the deal extended first in 2006 and again in 2013.
The recently concluded contract, which ended in 2025, was reportedly worth $47 million.
According to the Herald Leader‘s Jon Hale, the partnership has now been extended for another decade.
Kentucky and Nike entered into a 10-year contract earlier in the summer of 2025. The contract went into effect on July 1 and is set to run through the 2034-35 school year.
Per the contract extension terms, the annual allotment of Nike gear will increase from $2.125 million last year to $7 million in 2025-26. The amount will remain the same for the next four years as well, before hiking up to $7.5 million in 2030-31.
The report states that Kentucky’s contract with Nike would be worth at least $76.5 million over 10 years. Depending on the royalty payments made during that decade, the figure could be higher.
In addition, each sport will receive individual bonuses for winning national championships. Mark Pope and Kenny Brooks’ men’s and women’s basketball teams will each earn an extra $50,000 if they win.
The figure is $25,000 for baseball and softball, and $230,000 for football.
Changes in the New Kentucky-Nike Deal
The previous contract included a term allowing Nike to cut compensation by 70% if men’s basketball was barred from TV appearances as part of NCAA probation. However, the penalty is down to a 50% cut in base compensation and 25% for a TV ban in men’s and women’s basketball in the new contract.
The deal underwent further changes. The previous one had a clause that earned the UK an additional $1.8 million annually from Nike.
However, the new one has a cumulative royalty agreement instead, which states Nike will pay UK a 15% royalty for the sale of all products except shoes that bear the university’s logo. The UK will get a 5% royalty on shoe sales.
With revenue sharing also going into effect from July 1, this deal could not have come at a better time for Kentucky.
As for the basketball roster, Kentucky has recruited four homegrown players for the first time in 20 years: Trent Noah, Malachi Moreno, Jasper Johnson, and Reece Potter.
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“He’s so young and he’s so capable,” Pope said about Malachi Moreno in a July press conference. “From him, we’re gonna see moments where it’s like he should be in the NBA right now, and we’re gonna see moments where we feel like, I’m not sure Malachi knows exactly what he’s doing.”
In a previous press conference, Pope praised Johnson, labeling him a potential “superstar” in the making.
