The University of Tennessee (Tennessee) recently announced that the school would be ending its apparel deal with Nike and going back to Adidas. A huge part of the decision was NIL opportunities for Tennessee athletes. Since the House Settlement was approved and revenue sharing began, many contended that schools and companies would find ways to legitimately exceed the $20.5 million cap. The structure of this new apparel deal between Adidas and Tennessee may be the blueprint for a legitimate way to offer college athletes financial opportunities above the revenue sharing cap.

According to Yahoo Sports, the deal between Adidas and Tennessee is a 10-year deal where the school will make roughly $10 million per year. The deal is set to take effect in the 2026-2027 school year. The deal is expected to “establish a new standard for investing in NIL” as University of Tennessee athletes are expected to receive a significant portion of the $100 million over the 10-year period. This is an example of the creative ways that universities and companies are developing to remain competitive in recruiting by providing creative financial incentives for their athletes.

According to Sportico, this deal is also unique as the agreement is not actually with The University of Tennessee itself. The agreement is with the newly created University of Tennessee Athletics Foundation (UTAF). This foundation is expected to secure more contracts with third-party vendors on behalf of the university. Currently, this foundation serves as the only entity through which Tennessee athletes receive revenue sharing distributions. The creation of the UTAF, points to a new trend of schools developing new entities to handle athletic department business. For example, The University of Kentucky reorganized their athletic department into a LLC, Champion Blue. These types of decisions seem to be the future of college sports as colleges and universities contend with how to be competitive in the revenue sharing era.

College and high school athletes have been granted the right to profit from their name, image, and likeness! Yayyyyyy!!! College and high school athletes can now enter NIL Deals. This is an exciting opportunity for college and high school athletes. However, there are certain topics that college and high school athletes and their parents need to know before entering any NIL Deal. Download by free NIL Contract Checklist for 5 contract terms to know! For more on college athletes' name, image, and likeness rights follow me on X @esquire_coach and on Instagram and TikTok @the_esquirecoach. To receive updates from The Esquire Coach Blog directly to your email please subscribe below.