Under Armour Shares Drop as Sports Leagues Suspend Their Seasons

Under Armour shares dropped as a number of sports leagues suspended their seasons. The NBA on Wednesday said it was suspending its season and MLS followed suit Thursday.
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The effects of the coronavirus continue to spread through the economy and are cutting deeply into sports business. Major League Soccer said it was suspending its season for 30 days in what could be a blow to sports-apparel retailers like Under Armour  (UA) - Get Report

"Our clubs were united today in the decision to temporarily suspend our season – based on the guidance from the Centers for Disease Control, Public Health Agency of Canada, and other public health authorities, and in the best interest of our fans, players, officials and employees," MLS Commissioner Don Garber said in a statement. 

"We'd like to thank our fans for their continued support during this challenging time."

Under Armour Class C shares at last check were off 12% to $8.81 amid a wider market selloff that earlier saw the Dow Jones Industrial Average fall more than 9%. In 2020 through Wednesday, Under Armour shares dropped 48%.

On Wednesday, the NBA suspended its season indefinitely after a player on the Utah Jazz tested positive for the virus. A teammate on Thursday was found to have also contracted the disease. 

Nike  (NKE) - Get Report, the official apparel partner for the NBA, saw its stock drop fall as much as 13% Thursday on the news

That decision followed news that the NCAA ordered its signature March Madness basketball tournament, set to begin next week, to take place without fan attendance amid the coronavirus pandemic.

NCAA conference tournaments began this week, but the Big Ten, SEC and Big 12 all canceled their annual tournaments Thursday in an effort to stop the spread of the coronavirus.