Penn State is in the process of switching from Nike to adidas, according to On3's Brett McMurphy, who first reported the news on Tuesday. The Nittany Lions deal with Adidas is pending approval from the school's Board of Trustees.
Penn State has been a school sponsored by Nike since 1993, with athletes representing the brand, and the school gaining the name-recognition. However, if Penn State's deal goes through, the Nittany Lions will be joining the three-stripe family soon.
One of the main reasons for the switch is the NIL component adidas would commit to in supporting Penn State's athletes.
Why Make the Switch?
Penn State wouldn't be the first school to recently make the switch from Nike to adidas. Tennessee announced their switch from the swoosh to the three stripes in August, and a main factor was adidas' contributions to NIL.
Tennessee's deal is a ten-year contract, and a chunk of the $100 million will go toward NIL deals. Penn State is looking for a similar deal as NIL continues to grow in the college football landscape.
"Bar minimum, it is a Tennessee-esque deal," a source with knowledge of the conversations between Penn State and adidas said (h/t On3.com). "But knowing [athletic director] Pat [Kraft], he’s going to make sure it’s bigger than Tennessee."
The Volunteers are expected to get between $15 and $20 million annually from adidas to use toward NIL deals, which seems to be the main talking point in Adidas' new deals.
Big Ten and SEC schools have roughly $13 million to spend on NIL based on revenue sharing. However, in the new age of college football, many rosters cost more than $20 million, with some reaching even $30 million.
It's been reported that Tennessee's annual package with adidas (cash/product/NIL) is approximately $20 million. Penn State would then become the most lucrative nationally as well. https://t.co/50BEWLisN1 pic.twitter.com/KNDF0V7QdD
— Ethan Moore (@_EthanMoore) September 2, 2025
Another key part of Penn State's deal with adidas is Nittany Lions' players ability to negotiate individual endorsement deals while repping the three stripes on the field. Not only would this provide increased value to the players, but adidas as well.
The deal is not set in stone yet, but Penn State is on its way to having a new sponsor, and providing new opportunities for its athletes, and adidas dedication to NIL could be opening many new opportunities for the company.
Along with Penn State, LSU's and USC's apparel deals are set to expire soon, and adidas' new NIL initiative may entice more universities to make a switch.