Contractually speaking, Reebok International, Inc. defines its marketing territory as the entire world.
The University of Wisconsin took a giant leap toward landing on Planet Reebok Wednesday when the UW Athletic Board approved an amended five-year $7.9 million contract with the shoe, apparel and sports equipment company that associate athletic director Vince Sweeney called one of the best of its kind in the country.
The contract gives Reebok the right to be the exclusive supplier of sports equipment, shoes and apparel for all 22 UW sports teams. In return, Reebok will give nearly $8 million to the UW in a variety of areas, including coaches' compensation, general and athletic scholarship funds, internships as well as UW recreational sports and City of Madison sports activities.
But the deal isn't official yet. The board made four minor amendments that Reebok must agree to by May 23, which is the deadline to get the contract to the UW Board of Regents so it can vote on the matter next month. If Reebok doesn't agree, the board must re-vote on whether to accept the contract without the amendments. Such a vote failed at the Wednesday meeting.
If Reebok agrees but the deadline is missed, the Board of Regents won't vote on the contract until its July meeting and that could delay the arrival of equipment for fall sports teams.
Two of those amendments -- regarding free speech and human rights issues -- were the source of a long debate among board members and may create some consternation among Reebok officials. Still, Sweeney as well as board chairman Jim Hoyt and legal counsel Melanie Newby were all optimistic that Reebok will approve the amendments.
``It looks to me like this can be done in a matter of a few days,'' said Hoyt.
Newby said she would contact Reebok attorney David Pace, who has been working with UW officials. ``My sense is that he's going to react right away to whether this is acceptable or not acceptable,'' she said.
``I think (the amendments don't) substantively change the agreement that much,'' Newby added. ``It just clarifies a couple of things. That's how we're going to present it to them; that this is an extension to what we have already agreed to; that we want to make it more clear.''
The first amendment dealt with two paragraphs in the contract that doesn't allow disparaging remarks by either side about each other. The contract stated that during and for a reasonable time after the contract has expired, the UW can't make any official statement that disparages Reebok, the school's association with Reebok, its products or the advertising agency or others connected with it.
Additionally, the contract stated, ``the university will promptly take all reasonable steps necessary to address any remark by an university employee, agent or representative, including a coach, that disparages Reebok.''
To many board members, that statement sounded like a gag order. ``This limits freedom of speech,'' said Bobbi Wolfe.
Added David McDonald: ``There's a whiff of sanction about it.''
Newby said coaches, faculty or athletes could say what they wanted, positive or negative, about Reebok. But it was up to UW officials to respond by explaining the agreement in a positive way.
The board then amended the paragraph by adding, ``Nothing hearin is intended to abridge the rights of students, faculty and employees to express a personal or individual opinion.''
Board members then amended the contract's writing of Reebok's human rights policy by adding, ``There is an expectation between the parties that this policy will be adhered to during the term of this agreement.''
Finally, in two additional amendments, the UW wants Reebok to offer scholarships to disadvantaged youths and to give a bonus to any coach who wins national coach of the year honors as selected by the Associated Press or an equivalent group.
``I'm pretty pleased that is has come down to four minor, but certainly not lengthy, suggested amendments,'' Sweeney said.
Sweeney added that athletic department officials have worked out any problems that the school's track coaches had with the deal. There were complaints that Reebok's shoes and equipment were inferior for athletes in some track events.
``We sat down and talked with them and explained what we thought were the overall benefits of the program and that Reebok is willing to work with them and their needs and their athletes' needs,'' Sweeney said. ``We don't expect them to stand up and cheer at this agreement, but we expect them to be open-minded. They agreed to do that and work with Reebok.''
Sweeney said that Reebok's chief negotiator applauded the UW for the process it used to reach the agreement.
``We approached it with an open mind,'' said Sweeney, regarding how the athletic department accepted bids from several other similar companies, such as Nike. ``I think it's clear that certain companies are very strong marketing companies and people are pretty dedicated to one company over another. But we sat back and were open-minded. We gave everybody a fair chance. We didn't enter it with a predisposed notion of which company we were going to go with and use one company to get what we wanted from another.''
Sweeney said he couldn't imagine any other school getting a better deal.
``I think it's one of the best deals of its kind in the country,'' he said. ``That's a subjective statement, but I know what other people have gotten for their programs. It's a tribute to this institution and the fans that follow our athletic teams that Reebok thinks that, despite everything it is giving us, that they will be able to sell enough licensed merchandise to make it work. I think that's a pretty significant message to the fan loyalty and the quality of the institution and the athletic department.''
