Under Armour to end US $ 280 million deal
Under Armour, the American athletic apparel manufacturer,
has announced its intent to soon end its deal with UCLA.
The US $ 280 million deal, which was signed 4 years back,
was in news for being the largest apparel agreement in the
history of US collegiate sports.
And therefore the retailerís decision to bring an end to the
deal has caught the attention of the industry. Whatís
In a statement, the apparel manufacturer said that it is now
forced to take this decision as it has been paying for
marketing benefits that it hasnít received for an extended
time period. There havenít been any returns!
Reportedly, the deal allows Under Armour to end it in such a
scenario and the company seems to be only exercising its
Meanwhile, UCLA has made it clear that it will contest Under
The deal is equally significant for both Under Armour and
UCLA and therefore cancellation can bring more losses. While
UCLA athletic department, which took a loan from the
University to cover its US $ 18.9 million shortfall for
2019, is already facing huge budget deficit, itís not much
different for Under Armour as well.
Under Armour has invested big in the deal and any
cancellation can not only affect the apparel maker
financially, but also tarnish its reputation. In fact,
according to projections of Wall Street analysts, its sales
for the current quarter could go down by almost 54 per cent.
Under Armour is known for products like athletic shoes,
T-shirts, jackets, hoodies and pants, among others and has
offices across the globe including London, Hong Kong, Paris,
New York, Seoul, Amsterdam, etc.
The company generates revenue of US $ 5.2 billion.