Under Armor to pay UCLA $67.5 million to resolve apparel sponsorship contract termination

UCLA will receive about $67.5 million from Under Armor as part of a settlement to settle the school’s lawsuit against the apparel company for terminating a record apparel sponsorship deal, according to a document. obtained by ESPN.

On May 26, the two sides agreed to a settlement, which required Under Armor to pay UCLA $67,491,275 and release both parties from liability. In June 2020, Under Armor informed UCLA that it intends to terminate its 15-year, $280 million contract to be the school’s clothing sponsor, citing “marketing interests” UCLA’s did not deliver “for a long period of time.” Under Armor attempted to invoke a force majeure clause in the agreement after UCLA halted all sporting events following the onset of the COVID-19 pandemic.

The deal, signed in 2016, was the largest sponsorship deal in college sports history at the time.

In August 2020, UCLA sued Under Armor for more than $200 million for breach of contract. In September 2021, Under Armor protested UCLA, claiming the school violated a separate agreement by coating Under Armor logos with social justice patches on the uniforms of football and basketball teams . Both lawsuits were dropped due to settlement, which included a non-discrimination clause.

“UCLA is one of the most recognized and respected college names globally,” Mary Osako, UCLA’s vice president of strategic communications, said in a statement to ESPN. “We are pleased to have addressed this in a way that benefits our student-athletes and the entire Bruin community.”

UCLA in June announced it would be leaving the Pac-12 to join the Big Ten in 2024 and cited financial struggles as the reason for the conference change. The Los Angeles Times reported in January that UCLA’s sports division had more than $100 million in debt, in part stemming from the loss of its Under Armor deal. In December 2020, UCLA announced a six-year partnership with Nike and Jordan Brand that will pay the school $46.45 million.

Athletic director Martin Jarmond told ESPN in July: “I inherited a deficit with UCLA athletics. “So when you have a big financial challenge, it’s hard to stay, don’t bother investing. This move [to the Big Ten] Not only does it maintain the programs we have in place, but it also allows us to invest in them at levels that can lead to more competitive success. “

Under Armor continues to feature several major college athletic programs, including Notre Dame, Auburn, Wisconsin, and Utah.

“Under Armor remains committed to all student athletes and wishes UCLA and the entire Bruin community well,” the company said in a statement.

Source link


News7g: Update the world's latest breaking news online of the day, breaking news, politics, society today, international mainstream news .Updated news 24/7: Entertainment, the World everyday world. Hot news, images, video clips that are updated quickly and reliably

Related Articles

Back to top button