Under Armour is trying to get out of its deal with UCLA.
According to Ben Bolch, the popular apparel company is looking to terminate its $280 million deal with the Golden Bruins. (RELATED: David Hookstead Is The True King In The North When It Comes To College Football)
UCLA released a statement that they will attempt to fight Under Armour.
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
The termination of the Under Armour deal obviously would be a huge blow to a UCLA athletic department already facing a massive budget deficit.
— Ben Bolch (@latbbolch) June 27, 2020
According to Bolch, UA might be able to get out of the deal without penalty because of the force majeure clause, which allows either side to opt out for “natural calamities, national emergencies, declarations of war, riot, civil disturbance, sabotage, explosions, acts of God.” The company seems to think that coronavirus is covered under that clause.
There is a force majeure clause in UCLA’s contract with Under Armour that, in theory, lets either party out of its obligations for events including “natural calamities, national emergencies, declarations of war, riot, civil disturbance, sabotage, explosions, acts of God.”
— Ben Bolch (@latbbolch) June 27, 2020
It’s going to be very interesting to see what happens from here. Under Armour is one of the biggest apparel companies in America, but everyone is struggling right now.
Without sports rolling and the future of the college football season in major doubt, it’s understandable why UA might want to opt out of the deal.
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I just hope they don’t do the same to the Badgers because Wisconsin is also an Under Armour school, and I don’t want to lose a penny.
As for UCLA, it’s truly mind-boggling just how bad their athletic department has become these past few years.
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The Bruins used to be a national basketball power. Now, nobody takes their basketball team or football teams seriously.
Both squads are afterthoughts outside of the region.
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Best of luck to UCLA. It sounds like they’re going to need all the help they can get.