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Michigan officially unveils Nike apparel deal worth $169M

The University of Michigan said Wednesday that the shoe and apparel deal it had agreed to with Nike last week is worth $169 million.

The deal, which is for 11 years beginning with the 2016-17 fall season and runs though 2027, has an option for Michigan to extend it through 2031.

The cash and equipment part of the deal over the guaranteed 11 years is worth $122.3 million -- $65.5 million in cash and $56.8 million in apparel and equipment, with another $46.6 million in cash and apparel and equipment over the four-year option.

That works out to an average of $11.26 million a year over the 15 years. When breaking it down by year, it is actually not bigger than the 10-year deal Notre Dame signed with Under Armour last year, a source with knowledge of that deal told ESPN.com.

At $8.2 million a year in cash and equipment, Michigan's current deal with Adidas, which comes to an end after the 2016 spring season, was the most lucrative among public schools in the country.

Nike officials would not comment on the numbers, but it appears like the world's largest shoe and apparel company was interested in getting back with the Wolverines, despite the fact that the football team has floundered in recent years.

The deal is two and a half times the highest commitment per year in cash and gear that Nike has with any other public school. The next highest for Nike, according to the Portland Business Journal, which maintains a database of all school shoe and apparel contracts, is Florida State. Nike gives the Seminoles a total of $4.4 million a year in cash and gear.

Despite Nike's interest, sources tell ESPN that Nike was in fact the lowest bidder, but given the angst over the much-criticized Adidas deal, Michigan interim athletic director Jim Hackett felt making the right deal with the right partner was important.

"After careful consideration, the right partner for the University of Michigan was Nike," interim athletic director Jim Hackett said in a statement. "This decision is about more than Michigan athletics; at the core, it is about our University community and it is about two great names reuniting for an opportunity that speaks to more than uniforms and apparel."

The deal specifies that Nike will pay Michigan a 15 percent royalty on the gross price of gear that is sold at retail and that a minimum royalty over the 11 years will be $18.37 million.