Phil Knight’s Nike Announces Major NIL Deal With Oregon’s $3.2M Rival QB

Nike made another big splash in the NIL world with a huge quarterback deal, and the ripple effects are wild. Now, Arch Manning still leads the pack at $6.8 million, thanks to deals with Vuori, Red Bull, and Raising Cane’s. Even Miami’s Carson Beck is also doing well, raking in around $4 million from Chipotle and Beats. But the big news? Nike, backed by Phil Knight, just signed up with a Nittany Lions QB, intensifying the Nike vs. Adidas battle. With valuations rising and contracts growing, the NIL race for college quarterbacks is booming, and the next round of major deals is already in the works.

Penn State quarterback Drew Allar is making waves, both on and off the field. With his senior season underway, Allar recently inked a significant NIL deal with Nike, a major player in the sports world. His performance speaks volumes: after leading the Nittany Lions to the College Football Playoff semifinal last season, he began 2025 as a top returning quarterback. And On3 estimates his NIL portfolio at $3.2 million, ranking him eighth in college football and ninth overall in the NIL 100. And Nike’s deal just adds up to it.

As On3’s Pete Nakos hits X with the news of this partnership. Even Nike dropped this banger on Instagram and welcomed Drew Allar to the family. “The Pride of Pennsylvania. “Welcome to the family, @drew.allar,” the brand posted. And they didn’t just stop there; Nike also told Sports Illustrated that “Allar’s partnership with Nike reflects the brand’s continued commitment to inspiring and uplifting the next generation through partnerships, innovation, and storytelling that move the world forward through the power of sport.” With Penn State ranked No. 2 in both the coaches poll and the AP Top 25 for Week 2, this news brings another level of hype.

And it makes sense. Allar’s performance on the field is matching his off-field success. In Penn State’s opening game against Nevada, he completed 22 of 27 passes for 217 yards and a touchdown in a decisive 46-11 victory. His control of the offense demonstrates why analysts consider him one of college football’s top returning quarterbacks. But this isn’t Allar’s first big NIL move either. Last month, he joined Travis Kelce’s ‘Tru Kolors’ project with American Eagle, alongside athletes like Jeremiah Smith, Azzi Fudd, and Sunisa Lee. With Nike on board, Allar is showing he’s more than just Penn State’s QB1—he’s a highly marketable figure in college sports. Nike also signed Alabama’s Ryan Williams this year, suggesting a bigger push into the NIL landscape.

Now, Penn State faces an impending apparel dilemma. The university has been with Nike since 1993, but rumors indicate Adidas is offering a substantial NIL package to try and win the Nittany Lions over. If the Board of Trustees approves, Penn State could switch to Adidas, potentially creating an odd situation where the star quarterback is with Nike while the rest of the team wears Adidas.

For Adidas, securing PSU would mean prioritizing them, unlike Nike, which has a wider focus, including Ohio State, Oregon, and USC. But in between the drama, Drew Allar’s aiming for the NFL, and ESPN’s Mel Kiper Jr. even sees him as a potential top-10 pick in the 2026 NFL Draft. Through strong play and significant NIL deals, Allar is boosting his brand and preparing for the next level. But with all the buzz there’s were some glaring problems too.

Drew Allar’s Penn State shaky gameplay

Drew Allar proved he could lead a new receiving group as he began the 2025 season, directing Penn State to a 46-11 victory over Nevada. The senior quarterback didn’t put up eye-popping numbers, but he was efficient, distributing the ball and leading the Nittany Lions to 39 points before leaving early in the fourth quarter. Transfers Kyron Hudson and Trebor Pena immediately made an impact, both exceeding the previous season’s single-game receiving high for a Penn State wide receiver. Hudson had six catches for 89 yards, including a 31-yard touchdown, and Pena caught seven passes for 74 yards.

Despite the win, Allar took too many hits. Nevada pressured him frequently, as the offensive line struggled early. He scrambled six times for 20 yards but took some hard hits. Protecting Allar is crucial with tougher opponents ahead, particularly with Penn State’s upcoming game against Oregon in a few weeks. The line has time to improve, but solidifying the protection is a priority.

But the offense still has areas to clean up. Though they never punted, the Nittany Lions stalled four times in opponent territory, settling for short field goals. Kicker Ryan Barker was perfect, making all four attempts, including two from just 28 yards. But converting those drives into touchdowns will be critical as the schedule gets tougher. These issues give Penn State clear targets for improvement before conference play starts in late September. The game also offered a look at the future.

Freshman Ethan Grunkemeyer took over in the fourth quarter, leading a 94-yard touchdown drive, completing 7 of 9 passes for 86 yards and rushing for a score. He connected on long throws to Khalil Dinkins and Andrew Rappleyea (though a penalty negated the latter) and looked ready in his debut. With two more manageable opponents coming up, Grunkemeyer and possibly Jaxon Smolik should see more playing time, helping Penn State build depth behind Allar. Overall, it was a strong game, with efficiency from Allar, standout receivers, and promising young players, but also clear reminders of where they need to improve before Oregon comes to town.