Under Armor has informed UCLA that it wants to end the record $ 280 million deal the clothing giant signed with the school in 2016, a potentially devastating move the Bruins are trying to combat.
In a letter to UCLA constituents, outgoing sports director Dan Guerrero wrote, “We are exploring all of our options to resist Under Armor’s actions and will share more information as we can. We want to assure you that UCLA Athletics remains committed to providing our staff and student athletes with the footwear, apparel and equipment necessary to train and compete at the highest level. “
Any loss of revenue would be doubly devastating for a UCLA athletic department already facing a massive budget deficit even before the pandemic led to the cancellation of spring sports and jeopardizing the fall sports calendar. The department obtained an interest-bearing university loan to cover a $ 18.9 million deficit for fiscal year 2019 and is expected to hit red numbers in 2020.
Under Armor agreed to a 15-year contract with UCLA in 2016 that was the richest footwear and apparel sponsorship in college sports history, replacing a deal the Bruins previously entered into with Adidas that expired in the summer of 2017. The deal He gave Under Armor a flagship program on the West Coast while providing UCLA with a massive infusion of cash and sportswear.
As part of the deal, Under Armor paid UCLA $ 15 million in advance, plus approximately $ 11 million per year in marketing fees and fees. The clothing company also agreed to supply the school with an average of $ 7.4 million in clothing, shoes and equipment each school year, while contributing $ 2 million over an eight-year period for improvements to sports facilities.
If UCLA and Under Armor split, the school would seek a new apparel deal, presumably with one of the other major players in sportswear. UCLA had received offers from Nike and Adidas before choosing Under Armor four years ago.
New UCLA athletic director Martin Jarmond is familiar with Under Armor, having worked with the clothing company as part of his sponsorship of the Boston College athletic teams when he was the Eagles’ athletic director. Jarmond partnered with the company to produce the Boston College-themed Martin Jarmond Sportswear Collection.
