Under Armour told UCLA that it intends to terminate a record 15-year, $280 million deal with the school—a deal that was signed in 2016 and was the largest in NCAA history.
“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. The agreement allows us to terminate in such an event and we are exercising that right," said Under Armour in an official statement.
"We know that this has been a challenging time for athletes, sports programs and performance apparel brands alike. Under Armour will continue to preserve our strength in this challenging environment, while maintaining a strong network of partnerships with individuals, organizations and leagues that make us the on-field authority for focused performers,” the company continued.
In response, UCLA released a statement saying, “We are exploring all our options to resist Under Armour’s actions. 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.”
If the deal is terminated it would add extra pressure on UCLA's athletics department as well as its financial stability.
At the end of the day, when paired up with Nike (NKE) - Get NIKE, Inc. Class B Report or even TJX (TJX Companies) , Jim Cramer said he would never own Under Armour (UAA) - Get Under Armour, Inc. Class A Reportstock.
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