Jordan Sneaker Dispute Spotlights College Sponsorship Business

Oct. 23, 2009 — -- How important is a college freshman's footwear to his university? If the college is the University of Central Florida and the freshman is Marcus Jordan, the answer is very.

Jordan, the son of NBA legend Michael Jordan, has made waves by declaring he wants to wear his father's namesake Air Jordan sneakers, made by Nike, instead of the Adidas shoes mandated by a sponsorship deal between UCF and the Germany-based company. Whether Jordan will be able to follow through on his preference remains uncertain. The drama, meanwhile, has opened up a window into the money-driven world of college sports sponsorships.

Since the 1980s, corporate sponsorships of college athletic programs have grown to be a major source of revenue for universities. Experts say that sports sponsorship agreements can net a school as much as $5 million or even $10 million in free apparel, sneakers, gear and cash, depending on the university's size. They can prove a reliable source of revenue, especially in uncertain economic times such as these.

"The amount of money you can make from your sports team can rival the amount you can make in tuition," said Boyce Watkins, a finance professor at Syracuse University.

Exactly how much UCF receives through its Adidas deal, which dates back to 2005 and is up for renewal next year, is unclear. The Orlando Sentinel has reported that the current contract is worth $1.9 million and that a new contract could be worth as much as $3 million, but university officials dispute those figures.

Adidas did not immediately respond to ABCNews.com questions about the contract.

However much UCF receives from Adidas, the university has made clear that it values the deal.

"There is a great deal of respect for the Adidas brand and the partnership," the university said in a written statement.

It informed Adidas "of this unique set of circumstances since the start of Marcus' recruitment to play" at the university, UCF associate director of athletics Joe Hornstein said in an e-mail to ABCNews.com. "We are confident, with our long-standing positive relationship with Adidas, that the subject will be worked out amicably."