Arizona-State-Nike-Sponsorship.Pdf
Total Page:16
File Type:pdf, Size:1020Kb
SPONSORSHIP AGREEMENT This Agreement is made and entered into by and between NIKE, USA Inc., an Oregon corporation ("NIKE"), and the ARIZONA BOARD OF REGENTS contracting solely for and on behalf of ARIZONA STATE UNIVERSITY ("UNIVERSITY") effective as of the 1st day of July, 2008. WHEREAS, NIKE desires to provide UNIVERSITY with certain athletic product and equipment for use by certain of its Intercollegiate Athletic Programs; and WHEREAS, NIKE and the UNIVERSITY desire to formalize, amend or otherwise render consistent the basis upon which such products are to be provided to UNIVERSITY and the conditions to which use of such products shall be subject; The parties agree to the following terms and conditions: 1. PURPOSE. The purpose of this Agreement is to provide for the supply of certain apparel and accessories (or footwear only, as appropriate per sport), defined as "Products" in the current Trademark License Agreement between the parties hereto (the `Trademark License"), on an annual basis from NIKE to the UNIVERSITY for use of the Products by Arizona State University, in accordance with this Agreement, and thereby further UNIVERSITY's educational mission by improving opportunities for student-athletes by freeing resources which might otherwise be used for purchase of apparel, footwear and other accessories. 2. TERM. This Agreement shall remain in full force and effect for a period of six (6) "Contract Years", from July 1, 2008 through June 30, 2014 (the "Initial Term"), unless extended by NIKE in accordance with Paragraph 9(a) below or sooner terminated in accordance with the terms and conditions hereof (collectively, the "Term"). For purposes of this Agreement, "Contract Year" shall mean each consecutive twelve (12) month period from July 1 through June 30 during the Term. This Agreement shall be interpreted as a series of one-year agreements, automatically renewed for the duration of the "Term" unless terminated pursuant to the terms hereof. 3. SPONSOR'S SUPPLY OF PRODUCTS, PRE-EXISTING AGREEMENTS. (a) Each Contract Year, unless otherwise specified, in consideration of the rights granted by UNIVERSITY to NIKE under this Agreement, NIKE shall supply to UNIVERSITY, free of charge, a mutually determined NIKE Products supply package (which, at NIKE's discretion, may be "NTS" or in-line product and may or may not bear any NIKE Marks) for use by (or in connection with) "Intercollegiate Athletic Programs" (as defined in the Trademark License Agreement), and by (or in connection with) UNIVERSITY and/or Coach associated camps (e.g., camp T-shirts) and clinics, and allocable on a per program basis in the Athletic Department's discretion. The aggregate retail value of supplied product for each Contract Year shall be as set forth in the table below: In addition to the foregoing, for each season in which the football team participates in a post-season bowl game, NIKE shall supply to UNIVERSITY, at no charge, one hundred (100) pairs of football shoes for such game. 2 1 st Contract Year (2008-09) $1,350,000 2nd Contract Year (2009-10) $1,375,000 3rd Contract Year (2010-11) $1,400,000 4th Contract Year (2011-12) $1,425,000 5th Contract Year (2012-13) $1,450,000 6th Contract Year (2013-14) $1,475,000 7th Contract Year (option Year, 2014-15) $1,600,000 Such Product will be consistent with the quality of Product NIKE currently supplies to other Arizona public universities and that NIKE supplies to other premier university athletic programs . The exact styles , sizes, delivery dates, and quantities of such NIKE Products shall be mutually determined by NIKE and UNIVERSITY (and subject to subparagraph (2) below) for each Contract Year. UNIVERSITY may, at its sole discretion, order and purchase from NIKE (at NIKE's published wholesale price, or as otherwise provided below with respect to the purchase of football shoes and football gloves, and subject to NIKE 's standard sales terms and conditions) additional quantities of the foregoing merchandise NIKE Products or components thereof subject to UNIVERSITY procurement policies, if applicable. All Products to be supplied by NIKE hereunder shall be delivered F.O.B. to UNIVERSITY. Only properly submitted orders from UNIVERSITY's Athletic Director or any authorized representative of UNIVERSITY's Athletic Director shall be filled by NIKE. No carry-over of unordered annual allotments of merchandise from one Contract Year to another shall be allowed . If an order (or orders) for any entire annual allotment of merchandise for any designated Intercollegiate Athletic Program is (or are) not received by NIKE prior to the conclusion of any Contract Year, then such program shall be deemed to have waived any right to the unordered portion thereof. (1) With regard to the purchase of football shoes and football gloves, NIKE agrees that: (i) Each Contract Year and provided UNIVERSITY has then ordered at least 350 pairs of football shoes for such year , UNIVERSITY shall be entitled to order direct from NIKE, on a "2 for 1 " basis, additional football shoes for use by the Team, at the same time UNIVERSITY submits their annual order for the Products . For purposes of this subsection , "2 for 1" shall mean that for every two (2) pairs of football shoes purchased from NIKE, UNIVERSITY shall receive from NIKE , free of charge, one (1) pair of football shoes. (ii) Each Contract Year and provided UNIVERSITY has then ordered at least 500 pairs of football gloves for such year, UNIVERSITY shall be entitled to order direct from NIKE, on a "1 for 1 " basis, additional football gloves for use by the Team, at the same time UNIVERSITY submits their annual order for the Products. For purposes of this paragraph , "1 for 1" shall mean that for every pair of football gloves , purchased from NIKE, UNIVERSITY shall receive from NIKE, free of charge, one (1) pair of football gloves. NIKE/ASU Sponsorship 3 (2) UNIVERSITY acknowledges that: (i) Annual product allotments shall be delivered to UNIVERSITY generally at least one (1) month prior to the start of the regular season for each Intercollegiate Athletic Program and that annual allotments must typically be ordered 12-18 months in advance of each season to ensure timely delivery. (ii) From time-to-time, NIKE may elect to obtain certain apparel or accessory Products to be supplied hereunder (such as football game jerseys and pants) from third parties. Such Products shall, at NIKE's election and at NIKE's expense (x) bear the NIKE Swoosh Design and/or other NIKE Marks (as designated by NIKE), consistent with NCAA rules and regulations, or (y) not bear any NIKE Marks. To facilitate product servicing under this Agreement , NIKE shall designate appropriate field representatives , as well as an internal account manager, whose responsibilities will include dedicated product servicing support for the UNIVERSITY. (b) Each Contract Year, representatives of the Athletic Department (to be designated by UNIVERSITY) shall be entitled to order NIKE Products for such uses (specifically including for marketing purposes) as may be approved in writing from time-to-time by the President of the UNIVERSITY consistent with applicable law, UNIVERSITY policy or NCAA or Conference rules. The aggregate maximum amount (in terms of retail value) of product that may be ordered hereunder, free of charge, on an annual basis shall be as set forth below: 1st Contract Year (2008-09) $150,000 2nd Contract Year (2009-10) $150,000 3rd Contract Year (2010-11) $150,000 4th Contract Year (2011-12) $150,000 5th Contract Year (2012-13) $150,000 6th Contract Year (2013-14) $150,000 7th Contract Year (Option Year, 2014-15) $160,000 All NIKE Products that are ordered under this subparagraph (b) must be ordered through the "NIKE Elite" program and are subject to procedures established by NIKE for such purpose. No carry-over of unordered annual allotments of merchandise from one Contract Year to another shall be allowed. (c) NIKE acknowledges that UNIVERSITY is party to pre-existing contracts with respect to product supply of the programs set forth on Exhibit A. UNIVERSITY represents and warrants that set forth on Exhibit A hereto is a true and complete list of each company with whom UNIVERSITY has such an agreement, the program covered by each agreement, the supplied product and the expiration date of such contract. The parties hereto agree that: (i) upon the expiration of each such contract, the subject Products, program (and any Coach thereof, subject to expiration of any relevant personal services agreement ) shall be deemed subject to all terms and conditions of this Agreement for the balance of the Term provided NIKE matches the complimentary product quantities and cash compensation that UNIVERSITY had then been receiving from such third-party under the pre-existing contract between the parties. NIKE/ASU Sponsorship 4 4. USE OF SPONSOR'S PRODUCTS. (a) Throughout the Term, UNIVERSITY shall make NIKE Products available on an exclusive basis to each Outfitted Program and Footwear Program, as appropriate, to be worn and/or used (with NIKE trademarks camera-visible as they customarily appear on such product) by Team members , Coaches and Staff during practices, games, exhibitions (including during locker room activities), clinics and /or sports camps (that receive UNIVERSITY resources, e.g., playing field/court use, on- campus lodging , dining hall privileges), lockerroom and/or sideline/courtside celebrations and/or presentations , and other official or UNIVERSITY sanctioned activities (including but not limited to photo sessions and interviews ) during which Team members , Coaches and Staff wear and/or use Products and provided that UNIVERSITY has control over the activity and, with respect to ball use, the right to designate the game ball to be used . UNIVERSITY shall require all such Coaches and Team and Staff members to wear and/or use exclusively NIKE Products (as provided above and with NIKE trademarks camera-visible as they customarily appear on such product) during such activities .