Penn State finalized a 10-year agreement with Adidas worth roughly $300 million, ending its three-decade-long relationship with Nike. The partnership provides the university with new resources for its athletic programs while giving Adidas another major foothold in college sports.
According to reporting from Jon Sauber of the Centre Daily Times, Penn State walked away from Nike after the school “did not feel like a priority” to the brand. Citing multiple sources, Sober noted that despite consistent success in football and other sports, the Nittany Lions felt overlooked compared to other programs.
“The Nittany Lions, despite consistently competing for championships in several sports — and producing what has become a consistent top-10 program in football, did not feel like a priority to the company, according to multiple sources with knowledge of the situation,” Sauber wrote.
Penn State recognized Oregon’s special treatment due to Nike co-founder Phil Knight’s close ties to the school, but the growing issue was Nike’s handling of other Big Ten programs.
“Multiple sources said Penn State felt it was beneath not just the Ducks, but also Ohio State and Michigan in the pecking order with Nike,” Sauber added.
Penn State had been with Nike since 1993, but the move reflects broader shifts in college athletics. Tennessee also announced in August that it would join Adidas after more than a decade with Nike. The Volunteers are reportedly set to receive between $15 million and $20 million annually from Adidas earmarked for NIL purposes.
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
With new rules allowing athletic departments to directly allocate up to $20.5 million annually to athletes, Penn State’s deal with Adidas helps offset that expense while also enabling Adidas to sign athletes to promotional contracts outside of the university structure.
The agreement, which takes effect on July 1, 2026, positions Penn State alongside Tennessee and 12 other Power Five programs already affiliated with Adidas, including Indiana, Nebraska, Washington, Louisville, Miami and Texas A&M.