UNDER ARMOUR TO END $280-M, 15-YEAR APPAREL DEAL WITH UCLA
Athletic apparel maker Under Armour said on Saturday (Sunday, June 28, 2020 in Manila) it will discontinue its partnership with University of California-Los Angeles (UCLA) - a 15-year, $280 million accord announced in 2016 that was billed as the largest apparel deal in the history of American collegiate sports. UCLA promised to fight the move, wrote Juby Babu and Ann Maria Shibu for Reuters.
The Baltimore-based company said in an emailed statement that it made the decision to terminate the agreement with UCLA - a member of the Pac-12 athletics conference - because “we have been paying for marketing benefits that we have not received for an extended time period.”
The agreement with UCLA allowed the company to terminate the deal in such an event and it is exercising its right, Under Armour added. “We are exploring all our options to resist Under Armour’s actions,” UCLA said in a statement. “We remain 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.”
Under Armour has competed with other leading apparel makers for agreements with major intercollegiate sports programs. In May 2016 the company had hailed the agreement, which took effect in 2017, as “the largest apparel deal in the history of the National Collegiate Athletic Association (NCAA), reaffirming UCLA’s status as a world-class institution and Under Armour’s position as a global leader committed to collegiate athletics.”