Report: Under Armour looking to end $280 million deal with UCLA
Under Armour is looking for a way to get out of its massive $280 million deal with UCLA. News of the situation was reported over the weekend by the Los Angeles Times.
The athletic apparel company said it is looking to end the deal that was initially signed in 2016 — less than five years into the 15-year contract. Under Armour says UCLA did not provide the marketing benefits that were agreed upon in the deal.
“Under Armour has recently made the difficult decision to discontinue our partnership with UCLA, as we have been paying for marketing benefits that we have not received for an extended time period,” Under Armour told The Los Angeles Times. “The agreement allows us to terminate in such an event and we are exercising that right.”
At the time the deal was signed in 2016, it was the largest in NCAA history.
UCLA Athletic Director Dan Guerrero wrote a response to Under Armour’s attempt to end the deal.
“We are exploring all of our options to resist Under Armour’s actions and will share more information as we can,” Guerrero wrote. “We want to reassure you that UCLA Athletics remains committed to providing our hard-working staff and student-athletes with the footwear, apparel and equipment needed to train and compete at the highest level.”
The switch was officially made in 2017, when UCLA’s agreement with Adidas came to an end. Under Armour agreed to pay UCLA $15 million up front, with the promise of $11 million each year over the 15-year period. The company also provided the school with approximately $7.4 million is shoes, apparel and equipment and an addition $2 million for facility upgrades.
According to recent reports from Sports Illustrated and others, Under Armour also wants out of its deal with Cal.