Is this good news or bad news for team dealers and sporting goods retailers? Whichever it is, the fact is that as part of a long-term partnership with Nike to manufacture college sports fan apparel, starting mid-2024 Fanatics will begin manufacturing most of Nike’s fan apparel for many of its most prominent college partners.

The deal includes a select group of Nike’s college and university partners, including Ohio State, Georgia, Clemson, Oregon, Oklahoma and Penn State, sources told CNBC. 

According to these sources, Nike will continue to manufacture apparel and merchandise for its college team partners, including on-field apparel.

The arrangement is similar to comprehensive deals that Fanatics and Nike have with the NFL and MLB, where Nike handles on-field products, including athlete jerseys, and Fanatics manufactures fan merchandise. 

Nike currently manufactures the bulk of college products in-house.

“We are proud to expand our long-standing partnership with Nike and implement our innovative vertical commerce model across their preeminent roster of universities,” Doug Mack, CEO of Fanatics Commerce and vice chairman of Fanatics Holdings, told CNBC. “Our team is excited to maximize the value of Nike’s college partnerships by creating faster speed-to-market of fan gear through our agile supply chain, resulting in an expanded assortment of both timeless and on-trend Nike-branded merchandise for college fans and retailers everywhere.”