It’s not the $ 200 million they sued for, but the Bruins managed to put an end to the controversial Under Armor saga with a little extra cash in their pocket.
The day after the City News Service reported that UCLA and Under Armor had abandoned the dispute over duel against each other, the details of the out-of-court settlement between the two sides went public. Under Armor agreed to pay UCLA $ 67.491 million to bring their relationship and legal battles to an end on May 26, the Los Angeles Times’ Ben Bolch first reported Friday.
Under Armor was required to make full cash payment to UCLA within 30 days of the effective date, under the settlement agreement reviewed by All Bruins.
“UCLA is one of the most recognized and respected collegiate names in the world,” said UCLA Vice Chancellor for Strategic Communications Mary Osako in a statement provided to All Bruins. “We are gratified to have resolved this issue in a way that benefits our student-athletes and the entire Bruin community.”
UCLA and Under Armor agreed on an exclusive $ 280 million 15-year partnership in 2016, the largest apparel deal in college sport history. However, Under Armor terminated the contract in 2020, claiming the Bruins failed to keep the deal ending when they failed to deliver the required marketing benefits while competition was suspended during the COVID-19 pandemic.
While this allowed Under Armor to invoke a contract clause, UCLA sued them for $ 200 million in damages for breach of contract, arguing that canceling the rest of the deal was not an expressly permitted consequence in the contract. agreement. A judge agreed with the Bruins when Under Armor tried to have the lawsuit dismissed in August 2021, leading Under Armor to strike back that September.
Under Armor has agreed to provide minimum clothing to UCLA teams for the 2020-2021 academic year, despite having already canceled the last 12 years of the agreement. However, the Bruins covered the Under Armor logo on all of their in-game jerseys with a “Stand Together” patch, which Under Armor said was an attempt to undermine their brand under the guise of promoting social justice.
Lawyers representing UCLA at the time said there was no intention of being mean or vengeful by hiding or damaging the Under Armor logos in any way.
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The money the Bruins lost when Under Armor left has played a key role in sending the athletic department into the red over the past three years. Although the school was able to pivot and strike a new deal with Jordan Brand and Nike, the $ 46.45 million six-year contract was not enough to save UCLA Athletics from its $ 103 million. debts.
UCLA made a big move in June that could wipe out those financial worries in a short time, however, by announcing that the school would be leaving Pac-12 in favor of the Big Ten starting in 2024. The Big Ten are currently in talks. for a new media deal and with UCLA, USC and the Los Angeles market joining their portfolio, conference payments will exceed $ 100 million annually.
The combination of the upcoming Big Ten money and Under Armor settlement money could give UCLA Athletics enough money to dig out the hole and go straight into the black.
Under Armor, meanwhile, faced financial difficulties, with its share value going from over $ 52 per share in September 2015 to under $ 10 in July 2022.
In May 2021, Under Armor accepted a $ 9 million deal with the Securities and Exchange Commission after being accused of misleading investors about revenue growth during the initial negotiation process with UCLA.
Regardless, Under Armor now officially has another deal to pay.
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