Under Armour is “attempting to terminate” its $280-million apparel deal with UCLA, per L.A. Times reporter Ben Bolch.
The Bruins are four years into their 15-year deal with the major sports apparel company. UCLA signed the sponsorship deal – worth a record-breaking $280 million, the largest sponsorship deal in the NCAA – back in 2016. The deal nets the Bruins approximately $12.5 million in apparel and cash per year.
But Under Armour is now trying to back out of the deal and terminate the contract with UCLA. There’s a few possible reasons as to why Under Armour is attempting to do so, but the actual reason still remains unclear.
Under Armour is a struggling company, especially in the midst of the COVID-19 pandemic. The company may not be able to live up to the financial obligations it made to UCLA.
Under Armour has informed UCLA that it is attempting to terminate its record $280-million apparel deal with the school. In an email to UCLA constituents, athletic director Dan Guerrero wrote "We are exploring all of our options to resist Under Armour's actions."
— Ben Bolch (@latbbolch) June 27, 2020
Under Armour may also be displeased with the revenue – or lack thereof – UCLA has generated since 2016. The Bruins have struggled on the football field while also having a few down years on the basketball court.
UCLA has tried for years to rise above the USC Trojans. But even in the midst of a few down years for USC, the Trojans remain the best collegiate football program in Los Angeles.
As for the Bruins, they’re clearly going to fight Under Armour’s attempt to terminate the apparel deal. If Under Armour finds a way to back out of the deal, it’ll be interesting to see if UCLA works out a new deal with Adidas – its former apparel sponsorship – or Nike.