Penn State football’s jerseys are headed for a new look, and the change is coming from the business side as much as the football side.
Athletic director Pat Kraft said Tuesday at Big Ten Football Media Days that the school is taking a hard look at adding a corporate patch to Penn State uniforms, with a decision tied to finding the right partner and the right value. The move could happen soon, and Kraft did not rule out the possibility that it could come this season.
“We are exploring it all, " Kraft said Tuesday at Big Ten Football Media Days. "We’re doing our due diligence on what the real value is.
Ovbiously I believe our jerseys are the most iconic in all of sport. But this is the new reality.
We have to find other avenues to generate more revenue, and this is a very, very valuable asset. But we have to move cautiously in that space.”
The market for those jersey patches has picked up quickly across the Big Ten. Ohio State just announced a deal with JPMorganChase that is worth nearly $17 million per year, and Illinois and Wisconsin have also recently landed patch partnerships. Kraft said the Ohio State agreement is likely to reshape what schools can expect from this kind of sponsorship, and Penn State wants to be deliberate before jumping in.
He also made clear that the school understands how much Penn State fans care about the look of the uniforms. adidas did not make changes to the program’s jerseys, and Penn State described that 10-year apparel deal, worth about $300 million in total value, as a “new industry standard.” Even so, Kraft said the university is not rushing into the next step.
“We're seeing it in real time, the modernization of college sports," Kraft said. "But at the same time, we have to honor our past and our tradition.
We're as steeped in tradition as anybody in the country, so you've got to be sensitive to those elements and make the right decision. That's why we're taking our time with that.”
The patch conversation is part of a much bigger revenue push inside the athletic department. Kraft said adding corporate marks to jerseys across Penn State athletics, not just football, helps support the department’s need to pay athletes, fund 31 varsity programs and keep the Beaver Stadium renovation moving. He said Penn State has already signed more than $1 billion in guaranteed contracts for the department’s future.
“The key is the guaranteed number," Kraft said. "It's the floor.
Now we have the opportunity, and we should continue to generate more revenue on top of that. But that gives us a baseline more than most any of our peers.”
Penn State has kept stacking deals under Kraft, including a recent agreement with a platform that sells fan tokens, which are a form of cryptocurrency. The school also signed the $50 million Beaver Stadium field-naming rights deal with West Shore Home.
Kraft said Penn State has also brought in $353 million in donations for athletics, including more than $135 million tied to the Beaver Stadium renovation. He added that the project is still on budget, even though it was originally set at $700 million.
“We have to continue to find other ways to generate revenue at a high clip," Kraft said. "We are blessed to be a self-sustaining department.
We are blessed to be at the high end. But the minute you take your eye off ball and you take a step back, that's when you can lose footing.”
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