Nike then pays UCLA 11 million annually in rights and marketing fees and provides UCLA with seven million in gear.

That "seven million" dollar number is probably based on the market value of the shoes and uniforms.

But as we know, it costs Nike a small fraction of the price to produce a $190 pair of shoes. So Nikes cost for the seven million in gear is far less. But put a Nike logo on the shoes, and deck them out with a UCLA logo and colors, and they're worth a lot more.

I agree with the overall point though. These retail jersey's and shoes are so expensive. Its tough to see that the market can continually support these deals.