DETROIT -- The president of the University of Michigan says hehas no problem with losing a licensing agreement with Nike Inc. thatcould have brought the school millions of dollars.
Lee Bollinger said the university's commitment to human rightsoutweighed any financial advantage it could have gotten by renewingits six-year agreement with the sports apparel maker.
Nike said Thursday that it had terminated negotiations with theuniversity on the renewal of a licensing agreement with theUniversity of Michigan that expires Aug. 31.
Bollinger accused the company of retaliating against Michigan forits involvement with the Worker Rights Consortium, a student-drivencoalition of schools demanding that Nike provide better laborconditions for overseas workers.
Last week, Nike Chairman Phil Knight withdrew plans to donate $30million to his alma mater, the University of Oregon, after thatschool joined the consortium.
'Michigan seems to be the next target of a major attempt by Niketo breach understandings and make some kind of corporate statement,'Bollinger told The Associated Press in a telephone interviewThursday.
Nike did not disclose the dollar value of the proposed newcontract with Michigan, one of 200 colleges and universities withwhich it has licensing agreements.
But the new deal would have been what Nike called its largestuniversity 'partnership' providing funding and Nike footwear,apparel and equipment to all 25 men's and women's varsity teams andrecreational sports programs through August 2006.
Under the existing agreement, Nike annually pays the Michiganathletic department $590,000 in cash. It also supplies $930,000 inproducts to be Michigan's exclusive sporting goods provider andgets a promotional boost from placing its logo on Wolverineuniforms.
Nike also offers four summer intern positions at its Beaverton,Ore., headquarters, and dedicates more than $50,000 to endowscholarships as part of the deal.
Nike denies retaliation
Kit Morris, Nike's director of college sports marketing, said ina statement that the breakdown of talks with Michigan had nothing todo with the university's membership in the Worker Rights Consortium.
But Morris said one of the changes Michigan sought in theproposed contract regarding labor issues was 'problematic.'
That change, Morris said, 'would give the university unilateralauthority to impose any standards, guidelines or principles thatthey should adopt over the six-year term of the agreement, and thatkind of open-checkbook agreement is something that we're simplyunprepared to agree to.'
Bollinger said he was surprised by Nike's decision.
'My view is, that's a pretext for taking punitive actions againstuniversities for their very moderate and prudent efforts to ensurethat their products are made consistent with well-accepted standardsof international human rights.'
Bollinger said Nike's decision would not affect the quality ofMichigan's sports programs, although it would 'damage' efforts todraft 2000-2001 budgets for intercollegiate and recreationalathletics.
Bollinger said he did not regret the university's involvementwith a private company that is withdrawing millions of dollars inrevenue in a dispute over policy differences.
'There's no way to avoid, nor is it desirable to try to avoid, a(university's) relationship with a corporate enterprise,' he said.'We have to supply our programs with equipment.
'The question is, with whom and under what conditions.'
Nike recently increased its minimum age requirement for footwearworkers to an industry-high 18 years of age; improved indoor airquality of its footwear factories; raised wages for its Indonesianfootwear workers by more than 70 percent over the past 20 months;and established after-hours education programs for its footwearworkers, Morris said.
'Nike truly champions each university chartering its own course,'the spokesperson said. 'We do, however, reserve the right to partnerwith institutions with like minds, goals and aspirations.'
Last week, Michigan State University signed a licensing agreementwith Nike to outfit its national championship basketball teambeginning this summer. Neither side would disclose financial terms.
Michigan State is one of about 130 schools that belong to theFair Labor Association, a watchdog group that also includes a dozenmanufacturers, plus human rights, labor and consumer groups.
The Worker Rights Consortium was set up as an alternative to theFair Labor Association, which has been criticized as not beingstrict enough because it allows manufacturers to participate inmonitoring.
