Kornacki: Inside the Nike Process
7/8/2015 12:00:00 AM | General, Athletic News
July 8, 2015
Jim Hackett
By Steve Kornacki
ANN ARBOR, Mich. -- It was a case of leaving no stone unturned over five months of in-depth research and strategizing, and then going with a choice that became plain as day.
The search process Michigan interim director of athletics Jim Hackett led his department through included trips to the headquarters of three major sports equipment and apparel vendors, creating a project room to list and discuss various considerations, and countless conversations with Wolverines coaches, student-athletes and others.
Still, for all the research and discourse, there comes a moment when a decision rises out of all that effort.
Hackett was asked Tuesday (July 7) afternoon about the moment he just knew a return to Nike was the thing to do. He recalled reaching that point recently after glancing at Chrissi Rawak, Michigan's executive associate athletic director for external relations and strategic initiatives.
"We looked at each other one day when Chrissi was presenting the details -- first to the CFO of the university and later the president," said Hackett, referring to Michigan president Mark Schlissel and chief financial officer Kevin Hegarty. "I said to her, 'It's just obvious, isn't it?'
"When we got to the end of the presentation, it was obvious the winner was Nike. It was a Nike victory."
The partnership with Nike will commence Aug. 1, 2016 and run until 2027 with a department option to extend the relationship to 2031. Nike will supply all 31 Wolverines teams with uniforms, footwear, apparel and equipment, while the partners also will collaborate on innovation initiatives in sports technology, design and best practices.
Hackett said financial details will be available beginning the week of July 13.
There was plenty of information and opinion to consider in regard to remaining with adidas or possibly switching to Under Armour. But the popularity of returning to Nike, which the program had a previous endorsement deal with from 1994 to 2007, rang true with so many of those Hackett and his project team spoke with.
Hackett said he sought the opinions of new Wolverines football coach Jim Harbaugh and men's basketball coach John Beilein in addition to softball coach Carol Hutchins and women's basketball coach Kim Barnes Arico, among others.
One reporter among six in a conference room discussing the process with Hackett asked when Harbaugh voiced Nike as his choice.
"His second day on campus," said Hackett, who named Harbaugh coach Dec. 30.
Then there was the choice of a student-athlete Hackett described as "a prominent player in our athletic department," using anonymity to maintain the confidence with which their discussion took place.
Hackett said the student-athlete told him, "I just feel like I perform better when I'm in one of these brands."
Hackett added, "And he named the brand that he was in favor of."
That proved to be fascinating to Hackett, who wanted to know why one particular brand made that student-athlete feel that way.
Did Hackett end up choosing that brand?
He paused for a second, smiled, and said, "I did."
Hackett said that the two of them began talking on a nearly daily basis, but Hackett added that they had not conversed since the announcement.
"He'd say, 'Director, I hope you're working on the plan,'" said Hackett. "I said, 'So-and-so, yes, working hard.'"
Hackett also consulted Michigan alumni now in the NFL and NBA to compare the three brands, noting that Harbaugh had a very favorable experience with Nike while playing in the NFL and coaching the San Francisco 49ers.
"That was very helpful to me," said Hackett, adding how special it was that former players still cared so much about what the Wolverines would wear. "They just want us to be great."
Still, the decision to go with Nike -- the largest U.S. apparel company by a huge margin, according to Fashionista Magazine -- was far more than a popularity contest. The process was a mission to be fully informed.
Rawak, beginning in February, led the project team that included Bitsy Ritt, Debbie Kowich, Rob Rademacher, Darryl Conway, Andra Krievs, Jim Minick, Lissa Contreras, John Denniston, Michael Kasaborski and Clare Braun.
"They built a number of categories that were going to become our investigative lanes," said Hackett.
He then pulled up a photo on his smart phone to show reporters the project room with posted categories and notations on numerous boards covering its walls. Research, evaluation criteria, network and listen were among the chart titles.
"Each team member rated the vendors three times -- at the beginning, after the visits and after our analytics," said Hackett. "The third time is a cumulative effect of all this research."
And the winner was Nike.
Rademacher, said Hackett, now "manages the implementation" of the switch to Nike, headquartered in Beaverton, Oregon.
"Their brand strength is undeniable," said Hackett. "The achievement they've attained in brand identity is legendary. That came through loud and clear."
For instance, the men's and women's basketball teams will use the Jordan Brand "Jumpman" apparel that sprung from NBA superstar Michael Jordan.
However, the choice went beyond Nike's widespread popularity and was influenced, according to Hackett, by "the technology in the products we're going to wear" and "the weight of the investment" Nike will make.
When asked if it was important for this to be the largest contract, Hackett said, "You know, I love that question because it never was in any stated goal. ... But there is value in lots of ways."
Hackett sought the advice of other athletic directors on important considerations in choosing and said one "notable athletic director in the country" emphasized that Nike is "one of the most valuable brands in sports." The director added that Nike heavily impacted auto racing, golf and baseball as well as NFL and NBA teams.
Hackett said that the director added, "The Michigan brand is one of the most valuable assets in sports."
It was a telling moment.
"So," said Hackett, "I had a lot of pride in hearing that. But it got me to thinking about what the most valuable brand in sport deserves for a partnership."
Hackett termed adidas a "really hot brand" in Europe and Asia but noted that it's "not as hot here." He referred to Under Armour as a "Hall of Fame business story" that has produced "one of the fastest-growing stocks in modern times."
But with everything on the table, and Nike's connection to innovation and sustainability, Hackett said the decision was cemented. Receiving the "pivot point" to opt into four more years of the deal after 2027 also was important in terms of value to Michigan, according to Hackett.
Hackett, wearing a pair of adidas shoes but also showing the Nike swoosh symbol on his phone, was asked about the delicate nature of completing one last season with adidas.
He said he called adidas North America president Mark King to voice his appreciation and "respect" for the brand, saying the company "improved in standing" with Michigan during the search process. Hackett said he emphasized his dedication to a solid working relationship with adidas and noted that both he and King agreed to assure a mutually agreeable relationship for the length of the contract.
Hackett said that when beginning the wooing process he told the three vendors, "I want to be ahead and not just fast. I don't want to be a fast follower; I want to be ahead of where everyone else is."
He added, "So, we gave them a challenge, and Nike did the best."
• Reunited: Michigan and NIKE Announce Partnership (7/6/2015)
