Penn State and Adidas's $300 million apparel deal sparks controversy as some board members feel misled. The agreement, set to begin in 2026, replaces Penn State's long-standing partnership with Nike. However, the process behind the decision has raised concerns. Sources claim that the board of trustees was only shown partial summaries of the offers from both Adidas and Nike, despite their legal right to view the full documents under Pennsylvania state law. The main points of contention are the undisclosed details of the offers. The Nike proposal included a substantial $30 million cash upfront, while the Adidas contract features an annual product allotment of $500,000 in retail value for athletic director Patrick Kraft, separate from the $8 million allocated for the athletic department. This has led to accusations of misconduct and a potential conflict of interest, particularly regarding Kraft's close friendship with Adidas marketing executive Chris McGuire, who negotiated the deal. The university's response includes a strong denial of any wrongdoing, emphasizing the deal's benefits and the professional handling of negotiations. However, the controversy continues, with some trustees questioning the transparency and potential conflicts of interest in the decision-making process.
