Adidas, the world's second-biggest sporting-goods maker, will begin supplying the Wolverines' 25 sports teams during the 2008-09 academic year, the school said in a press release.

Adidas will pay Michigan $3.8 million in cash annually, which is more than the $1.2 million the university is receiving from Nike, and $2.2 million in products to outfit the university's teams, according to the Detroit News.

Michigan joins other U.S. universities such as Notre Dame, UCLA, Tennessee, Indiana, Nebraska and Wisconsin in signing with Adidas.