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As UCLA football taps Chip Kelly as new head coach, the economics of major apparel deals in college sports




Head coach Chip Kelly of the Philadelphia Eagles looks on during the game between the New England Patriots and the Philadelphia Eagles at Gillette Stadium on December 6, 2015 in Foxboro, Massachusetts.
Head coach Chip Kelly of the Philadelphia Eagles looks on during the game between the New England Patriots and the Philadelphia Eagles at Gillette Stadium on December 6, 2015 in Foxboro, Massachusetts.
Jim Rogash/Getty Images

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A new era of UCLA Bruin football starts on Monday when the school will introduce Chip Kelly as its new head football coach.

Kelly signed a five-year, $23.3 million deal. Kelly formerly coached the University of Oregon football team, building the program into a perennial powerhouse, before stints of varying success at the NFL level with the Philadelphia Eagles and San Francisco 49ers.

The deal that Kelly signed is thanks in no small part to the deal UCLA inked with apparel giant Under Armour. At 15 years and $280 million, it’s the largest apparel deal in the history of college sports.

These kind of deals are not uncommon at the collegiate level. Nike has apparel deals with the Universities of Oregon and Texas and Under Armour also has deals with Notre Dame and the University of Wisconsin.

But how do schools spend the money they get from these deals when they can’t use it to pay talent? And which schools are even in line to get these kind of deals? Will we see more and bigger deals with other schools in the near future?

Guests:

David Wharton, sportswriter for the Los Angeles Times

Victor Matheson, professor of sports economics at College of the Holy Cross in Worcester, Massachusetts