Under Armor has informed UCLA that it plans to terminate its 15-year $ 280 million apparel and footwear contract with the university, the sportswear brand confirmed in a statement on Saturday.
The record contract dates back to May 2016, when the two parties reached an agreement that entered into force in July 2017 and ended UCLA’s previous affiliation with Adidas. The $ 280 million 15-year contract broke the previous record for footwear and apparel contracts, surpassing the $ 252 million Nike and Ohio State contract last year.
In its statement, Under Armor expressed that it had not received any specific marketing benefits from the Bruins program to which it was owed.
“Under Armor recently made a difficult decision to end our partnership with UCLA because we paid for marketing benefits that we haven’t received over a long period of time,” the company said Los Angeles times. “The agreement allows us to terminate in such a case and we are exercising that right.”
When UCLA looked at Under Armor’s actions, on Saturday it ensured that the school was working to continue working with the sportswear brand.
“We’re reviewing all of our options to resist Under Armor’s actions,” the UCLA statement said. “We continue to strive to provide our hardworking employees and athletes with the shoes, clothing and equipment they need to train and compete at the highest level that they – and our loyal Bruin fans – deserve.”
UCLA’s athletics program is estimated at $ 18.9 million for fiscal 2019 after spring sports were canceled due to the coronavirus pandemic. The deficit prompted the athletics program to accept an interest-bearing loan from the university.
Sports director Dan Guerrero’s 18-year tenure at UCLA ends this week as he is replaced by former Boston College sports director Martin Jarmond.
Under Armor has contracts with two other schools in Pac-12 – California and Utah – while Nike is partnering with seven schools and Adidas is representing two more at the conference.
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