USATF, Nike in Apparent $500 Million Deal

Published by 3 Wire Sports on April 16, 2014

USA Track & Field on Tuesday announced a groundbreaking 23-year deal with Nike apparently worth $500 million, an arrangement that holds the potential to transform the leading sport of the Olympic movement in untold ways in the United States for a generation.

The Nike deal comes 13 days after USATF announced a seven-year partnership with Hershey, the chocolate maker. In February, 2013, USATF announced Neustar, the administrator of the .US top-level domain, as the three-year sponsor of its national road-racing championships.

Two more significant deals are expected to be announced next week.

“We are a more robust organization and, frankly, it is creating a lot of positive momentum for people who want to engage with us,” USATF chief executive Max Siegel said, adding of the Nike arrangement that while the Oregon company is “a significant part of our funding, it is one sponsor.”

Neither USATF nor Beaverton, Ore.-based Nike would disclose the financial details of the arrangement, which runs from 2017 through 2040. It is believed, however, to be at least double USATF’s current annual financial and in-kind support from Nike. Based on USATF financial documents and past media reports, that would put it in the $17-20 million dollar range annually.

“Nike was founded as a running company, and our passion for track and field is at the core of our DNA,” Mark Parker, the company’s chief executive and president, said in a statement, adding, “We have been a longstanding partner of USATF since 1991 and are extremely proud to extend our partnership and commitment to the sport.”