Tennessee Is Leaving Nike For Adidas In Landmark Deal Where NIL Will Play A Major Factor

The University of Tennessee and Adidas announced a new contract on Wednesday that will see athletes donning the new brand starting in 2026.

Right now, Tennessee athletics is still under contract with Nike until the summer of 2026, when Adidas will take over on July 1 of next year. But, this isn't the first time that the Vols have donned the jerseys of the company they are set to get back together with. In 2014, Tennessee left Adidas for Nike, in a deal that at the time ran through 2022-2023, until an extension was signed. 

This past spring, the window for negotiations began because both Nike and Tennessee could not come to an agreement on a new contract. It was at that moment, when the open period began, that Adidas came through the doors with a deal that was too hard to turn down, especially on the NIL front for Tennessee athletics. 

Now, Adidas will be offereing 'unprecedented NIl deals to current athletes, which could start as soon as this season in all sports, thanks to third-party agreements. 

Adidas Offer Was Too Good To Turn Down For Tennessee, Especially With NIL

Even though Nike was given the opportunity to match the offer made by Adidas, it did not come close to what was being offered by the Vols' new apparel company. This made the decision much easier, along with the fact that the new contract with Adidas is going to play a major part in NIL revenue for student-athletes once the new contract begins. 

"The role of a college athletics sideline partner has changed dramatically in the 11 years since we last partnered with Tennessee Athletics," said Chris McGuire, adidas Vice President of Sports Marketing, North America. "adidas is establishing a new standard for investment in NIL with this partnership that will sustain UT’s powerful athletics program as the university continues competing for championships for years to come."  

And while there are certain players that have outside NIL deals with other companies, like basketball star Nate Ament with Reebok, the new deal with Adidas will not affect those types of third-party contracts. You just won't see Tennessee promoting a company like Reebok, or sharing any pictures that would show the star basketball player's shoes or outerwear. 

Tennessee Is Leaving Nike For Adidas, In Landmark Deal That Has Fans Conflicted (Photo by Joe Robbins/Getty Images)

For the athletic department, this is a major step in receiving additional income, during a time when schools are searching for ways to raise money in this new revenue-sharing era. Though the contract details will not be released by Adidas, I am told that the company is making Tennessee its premier school, from a contract structuring standpoint. 

"Our mission is to build the premier athletics department in the country and to lead the way in college sports. Partnering with adidas is an ideal fit, as their mission is to be the best sports brand in the world," said University of Tennessee Vice Chancellor/Director of Athletics Danny White. "There is no denying the resurgence of Tennessee Athletics, powered by the greatest fan base in all of sports. Our strong licensing numbers, impressive television ratings, and sold-out venues all reflect this. adidas recognized our potential and responded with one of the best apparel deals in the history of college sports, prioritizing Vol Nation and the Tennessee brand."

"This partnership provides us with a significant advantage in the ever-evolving landscape of college sports. We take pride in our fan base and the competitive edge they offer us. We refuse to partner with someone who does not feel the same way."

Tennessee Made The Lucrative Decision To Leave Nike For Adidas

And while there has been plenty of mixed reactions on social media from Tennessee fans regarding the move back to Adidas, thanks to some very bad uniform decisions in the past, the school will have full authority over its designs under this new agreement. 

Tennessee Is Leaving Nike For Adidas, In Landmark Deal That Has Fans Conflicted.  (Photo by Kevin C. Cox/Getty Images)

In recent years, Texas Tech and Texas A&M have both signed deals with Adidas, even though some will argue that it's a risk moving away from Nike. 

But, if you are an athlete for the Vols, I would imagine you'll start seeing this payoff financially over the next few years, under this new 10-year agreement. If there is one thing that the school is banking on with this new agreement with Adidas, it certainly centers around the additional revenue, and how NIL will be a benefactor moving forward. 

So, I guess you're just going to have to trust Tennessee to make the right decisions on presenting its brand with Adidas to the world.