Penn State will switch to adidas. The deal is worth about $300M, per source
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- Penn State will end 33-year Nike partnership with $300M adidas deal over 10 years
- Adidas gains exclusive rights to Penn State gear and NIL athlete partnerships
- New agreement starts July 2026, targets all 31 sports and 800+ student-athletes
Following the finalization of a multimillion dollar deal, Penn State athletics will have a new apparel partner for the first time since the school’s football program joined the Big Ten in 1993.
The Nittany Lions and adidas have entered into a 10-year agreement for the company to become Penn State’s official footwear, uniform, apparel and sideline partner — ending what will have been a 33-year partnership with Nike. The partnership with adidas will begin on July 1, 2026.
The deal with adidas, according to a source with knowledge of the agreement, is valued at roughly $300 million over that 10-year period. That total includes cash, product, considerations for Name, Image and Likeness, and other benefits.
Penn State athletic director Pat Kraft said in a Friday afternoon press release that the deal sets a new industry standard.
“Penn State Athletics has been blessed with incredible partners throughout our history, but today, we step into a bold new era,” Kraft said. “From the field to the court, the mat to the pitch, this partnership goes far beyond uniforms, it is unlike anything else in the marketplace. [A]didas is making an unprecedented commitment to Penn State: delivering record investment in our department, groundbreaking NIL and marketing opportunities, and access to technology and innovation that no other program can match.”
According to multiple sources with knowledge of the negotiations, Nike had the option to match the adidas deal but declined.
After the deal with adidas was initially reported Tuesday night by On3, Penn State Athletics said in a statement that it was conducting a Request for Proposal for its future apparel partnership and “evaluating various opportunities.”
Adidas North America president John Miller emphasized the athletic department’s tradition and “championship potential” as part of the allure of the Nittany Lions.
“We see this new agreement as a unique opportunity for us to help shape the next chapter of Penn State Athletics while staying true to everything that makes the Nittany Lions an iconic brand,” Miller said in a press release.
The deal will also allow Penn State athletes to participate in the company’s NIL Ambassador Network, which launched in 2022. The network allows athletes to become paid affiliate brand ambassadors with adidas.
Penn State already has two high-level former PSU football players working with adidas in Green Bay Packer Micah Parsons and New York Giant Abdul Carter.
Those players could help adidas similarly to how former Texas Tech quarterback Patrick Mahomes has helped with his alma mater. Mahomes helped the company identify athletes for his “Team Mahomes” squad, which includes NIL deals for those athletes and saw them included in brand and product campaigns like the recent Evo SL running shoe collection.
Thursday afternoon, Nike and Penn State quarterback Drew Allar announced their own NIL deal. Allar will be out of eligibility after this season, however, and will no longer be at Penn State when the adidas partnership begins.
The Nittany Lions and adidas will spend the time leading up to the agreement’s commencement prioritizing “high-impact NIL agreements and brand marketing campaigns for student-athletes across all 31 sports,” according to the release, which will include the women’s volleyball and wrestling programs — both of which are coming off national titles.
“We are excited to partner with Penn State to equip all 800-plus Nittany Lion student-athletes with top-of-the-line products and industry-leading NIL opportunities,” Chris McGuire, adidas’ vice president of sports marketing in North America, said in the release.
This story was originally published September 5, 2025 at 3:22 PM.
