Report: Under Armour trying to terminate massive apparel deal with UCLA
While Nike is a dominant company when it comes to college athletics apparel, Under Armour tried to work its way into the market a few years ago, signing deals with schools like UCLA, Cal, Utah, Notre Dame and others.
Now, though, as we make our way through the COVID-19 pandemic, many businesses are feeling the pinch financially, and Under Armour appears to be one of those companies.
Per Ben Bolch of the Los Angeles Times, Under Armour is trying to terminate its huge $280-million deal with UCLA, but UCLA leadership is resisting that plan:
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
Per Bolch, Under Armour’s sales are expected to take a steep dive when compared to last year’s numbers over the same fiscal quarter:
Wall Street analysts project Under Armour's sales for the current fiscal quarter to be down 53.8% from the same period last year, according to American Banking and Market News.
— Ben Bolch (@latbbolch) June 27, 2020
It seems the 2 sides are at odds over this plan (understandably so), so we’ll see what comes of it over the next few weeks. There could be lawsuits filed over this case soon enough.
