Definitely not. Most schools have a certain amount of credit with the supplier per year, and they are paying for anything over that number. A reminder that Texas is unique, and not the norm. The vast majority of universities aren't getting cash for wearing a brand.
This is New Mexico's contract w/ Nike - just the easiest one I could find.
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NIKE’S PRODUCT AND OTHER CONSIDERATION.
(a) In partial consideration for the rights granted under this Agreement, each Contract
Year, UNIVERSITY shall have the right to pre-purchase up to a maximum of $3,000,000
(retail value) of NIKE Products (the “Annual Product Allotment”) at
preferential pricing, each annual amount to be mutually agreed no later than June 1
prior to the applicable Contract Year. UNIVERSITY agrees to pay NIKE 1/3 of the
retail value of the agreed Annual Product Allotment (e.g., $666,667 for an Annual
Product Allotment of $2,000,000 (retail value)) (the “Cash Purchase Price”) each
Contract Year in exchange for the Annual Product Allotment. The Cash Purchase
Price shall be due in two installments: (i) the first in the amount of 60% of the total
Cash Purchase Price for the applicable Contract Year on or before September 1 of
such Contract Year and (ii) the second in the amount of 40% of the total Cash
Purchase Price for the applicable Contract Year on or before March 1 of such
Contract Year. Upon payment of the first installment of the Cash Purchase Price
each Contract Year, UNIVERSITY shall be entitled to order directly from NIKE, and
receive, the Annual Product Allotment for use by (or in connection with) the Covered
Programs, clinics, camps (in no event shall any camp or clinic in this Agreement
include any juvenile or youth camps or clinics that are run separately by the
Coaches), Coaches, Staff and such other purposes as the Director of Athletics may
deem appropriate to support the relationship between the parties. If the full Cash
Purchase Price is not received by March 1 in any Contract Year, NIKE shall invoice
UNIVERSITY for all NIKE Products ordered for the applicable Contract Year at
NIKE’s published wholesale prices.
(b) UNIVERSITY shall be permitted to carry-over an Annual Product Allotment credit up
to $200,000 (retail value) in Contract Year 1 and Contract Year 2, in each case for
any unordered annual allotment of NIKE Products from such Contract Year to the
subsequent Contract Year. UNIVERSITY will notify NIKE as soon as practicable if
UNIVERSITY anticipates it will carry-over a credit to the subsequent Contract Year.
(c) Each Contract Year, in addition to the Annual Product Allotment, UNIVERSITY shall
be entitled to order up to $100,000 (retail value) through “NIKE Elite” Client Services
(and subject to procedures established by NIKE for such purposes), for the use of
UNIVERSITY Coaches and Staff (with such allocation among Coaches and Staff to
be determined at the discretion of the Director of Athletics). No carry-over of
unordered annual allotments through NIKE Elite from one Contract Year to another
shall be allowed.