Sportswear giant Under Armour (UAA) - Get Under Armour, Inc. Class A Report has informed 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.”
Related article: Under Armour Introduces Anti-Coronavirus Mask for Athletes
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.”
Should the deal be terminated, it would be a massive blow to UCLA's athletics department and financial stability, which—like most athletics departments—has been recently gutted by the impact of the coronavirus pandemic on sports.
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