OT: Under Armour attempting to terminate $280M contract with UCLA

[cuse10]

UA is barely treading water and overvalued the Bruins brand. UCLA, which itself is broke, can't afford for this termination to be successful. COVID probably didn't help, but the signs with UA were clear when they backed out on their MLB deal. Have to imagine that every UA school will have to prepare for their contracts to be terminated as well.

 

[TexanMark]

I remember someone telling me I was a fool (not here) to buy Nike stock when UA was much better.

My Nike is a 5 banger for me. Brand is important but so is corporate deep pockets.

University ADs are willing to take less $$$ to get sponspered by Nike...that is huge.

 

[Whitey23]

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 company said in a statement Saturday. "The agreement allows us to terminate in such an event and we are exercising that right."

aka UCLA stinks at football and basketball.

 

[djorange1989]

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 company said in a statement Saturday. "The agreement allows us to terminate in such an event and we are exercising that right."

aka UCLA stinks at football and basketball.

the Chip Kelly is a douche clause

 

[OrangeXtreme]

 

[DeGrozz]

I remember someone telling me I was a fool (not here) to buy Nike stock when UA was much better.

My Nike is a 5 banger for me. Brand is important but so is corporate deep pockets.

University ADs are willing to take less $$$ to get sponspered by Nike...that is huge.

Hopefully you sold before Friday!

 

[TexanMark]

Hopefully you sold before Friday!

Nope... it'll recover.

 

[cuse10]

Nope... it'll recover.

Not into stocks, but the same with my retirement portfolio. I have 30+ years to go.

 

[Wrinkle]

Under Armour sucks. Nike will always be cooler

 

[sutomcat]

UA is barely treading water and overvalued the Bruins brand. UCLA, which itself is broke, can't afford for this termination to be successful. COVID probably didn't help, but the signs with UA were clear when they backed out on their MLB deal. Have to imagine that every UA school will have to prepare for their contracts to be terminated as well.

Why would any college sign with UA ever in the future after this? Is UA getting out of that market?

Thank god we didn't get involved with that company when our Nike deal ran out.

 

[corpjet]

Current FBS schools with UA agreements.....

• Auburn Tigers[73]
• Boston College Eagles[74]
• California Golden Bears[75]
• Cincinnati Bearcats[76]
• Coastal Carolina Chanticleers[77]
• Colorado State Rams[78]
• Georgia State Panthers[79]
• Hawaii Rainbow Warriors and Rainbow Wahine[80]
• Kent State Golden Flashes[81]
• Maryland Terrapins[82]
• Navy Midshipmen[83]
• New Mexico State Aggies [84]
• Northwestern Wildcats[85]
• Notre Dame Fighting Irish[86]
• Old Dominion Monarchs[87]
• South Carolina Gamecocks[88]
• Temple Owls[89]
• Texas Tech Red Raiders and Lady Raiders[90]
• UAB Blazers [91]
• UCLA Bruins[92]
• Utah Utes[93]
• Wisconsin Badgers[94]

 

[MSOrange]

Why would any college sign with UA ever in the future after this? Is UA getting out of that market?

Thank god we didn't get involved with that company when our Nike deal ran out.

Yep there was a lot of speculation ADJW was going to be able to negotiate a great deal with the competition in the industry but looks like the competition wasn't as great as it seemed.

 

[cuse10]

Why would any college sign with UA ever in the future after this? Is UA getting out of that market?

Thank god we didn't get involved with that company when our Nike deal ran out.

UA is nerfing all of the high value deals. Texas Tech signed with them a few days ago for a fraction of what UCLA got. If you're entering a deal with them, you're accepting what may come along with it. This could have been seen from a mile away. When they backed out on the MLB deal, you knew their financials were a mess.

 

[FasterCuse]

Why would any college sign with UA ever in the future after this? Is UA getting out of that market?

Thank god we didn't get involved with that company when our Nike deal ran out.

I know SU doesn't have to release any figures, but was there every any reporting on what the new deal with Nike was worth?

 

[Hoo's That]

Current FBS schools with UA agreements...

• Auburn Tigers[73]
• Boston College Eagles[74]
• California Golden Bears[75]
• Cincinnati Bearcats[76]
• Coastal Carolina Chanticleers[77]
• Colorado State Rams[78]
• Georgia State Panthers[79]
• Hawaii Rainbow Warriors and Rainbow Wahine[80]
• Kent State Golden Flashes[81]
• Maryland Terrapins[82]
• Navy Midshipmen[83]
• New Mexico State Aggies [84]
• Northwestern Wildcats[85]
• Notre Dame Fighting Irish[86]
• Old Dominion Monarchs[87]
• South Carolina Gamecocks[88]
• Temple Owls[89]
• Texas Tech Red Raiders and Lady Raiders[90]
• UAB Blazers [91]
• UCLA Bruins[92]
• Utah Utes[93]
• Wisconsin Badgers[94]

In the lacrosse world you can add Hopkins, UMBC, and Towson. They probably signed on with them out of loyalty to a Maryland-based company.

 

[cuse10]

I know SU doesn't have to release any figures, but was there every any reporting on what the new deal with Nike was worth?

Clemson's Nike deal is 10 years at 58M total. Given that they are a bigger brand than SU because of their football team, I'm willing to guesstimate that SU's yearly AAV is between 4 and 5M. Shorter term deal, higher AAV.

 

[NJCuse97]

In the lacrosse world you can add Hopkins, UMBC, and Towson. They probably signed on with them out of loyalty to a Maryland-based company.

UMBC and Towson are part of the University of Maryland system.

 

[Hoo's That]

UMBC and Towson are part of the University of Maryland system.

All the state schools have independent contracts when it comes to apparel; there's no system-wide contract. Coppin State wears Nike, as does Maryland-Eastern Shore. When College Park signed on, it was for them alone. Frostburg, Salisbury, UMBC, and Towson all signed on with UA later.

 

[MadNY3]

Why would any college sign with UA ever in the future after this? Is UA getting out of that market?

Thank god we didn't get involved with that company when our Nike deal ran out.

Under Armour pulled out of the process in late 2018. They’ve been on the hunt to save money for a bit. The UCLA situation...oof.

 

[MadNY3]

Yep there was a lot of speculation ADJW was going to be able to negotiate a great deal with the competition in the industry but looks like the competition wasn't as great as it seemed.

The value of less cash at a shorter amount of time >>>> a big deal from New Balance or FBI-investigated adidas.

 

[longislandcuse]

Under Armour sucks. Nike will always be cooler

Nike dri-fit workout gear is meh. Not a fan.

UA over Pro Combat all day.

 

[sufandu]

Is UA the new 'Starter'? I remember in the early '90's when everyone wanted a Starter hat and jacket (I still have my SU starter winter pullover. One of the best coats I've owned). It didn't take long for it to turn into a Walmart brand.

 

[nzm136]

Is UA the new 'Starter'? I remember in the early '90's when everyone wanted a Starter hat and jacket (I still have my SU starter winter pullover. One of the best coats I've owned). It didn't take long for it to turn into a Walmart brand.

I remember those starter coats! ...good times.

 

[sufandu]

That UCLA deal looks so much bigger than anything else listed for any other school. How long is the deal for?

 

[IthacaMatt]

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 company said in a statement Saturday. "The agreement allows us to terminate in such an event and we are exercising that right."

aka UCLA stinks at football and basketball.

When I saw this, my first thought was about California passing that law that players should be treated as employees and were entitled to be paid. Not that Under Armour is going under.