Under Armour

Naval Academy to revisit Under Armour contract this week

Naval Academy to revisit Under Armour contract this week

During a time of economic uncertainty, Baltimore-based Under Armour is apparently looking for ways to save money which may likely come in the fashion of terminating apparel deals. 

After reports surfaced last week of Under Armour seeking to terminate their $280 million deal with UCLA, the Naval Academy is now on the company's radar, according to a report from the Capital Gazette. 

"I've got a teleconference with the Under Armour folks tomorrow [Thursday] to go over some things," Navy's athletic director Chet Gladchuk said. "We're going to review all the tenets of the contract. Under Armour has asked the Naval Academy Athletic Association to keep an open mind with regard to the big picture."

RELATED: UNDER ARMOUR SEEKING TO END $280 MILLION DEAL WITH UCLA

Nike was the Naval Academy's apparel company up until 2014 when Under Armour took over with an undisclosed multi-year partnership. 

Under Armour is under contract to pay at minimum $679 million over the next five years in total in sponsorships with professional teams and leagues, colleges, and universities, athletes,  athletic events and other marketing commitments, the company announced in its 2019 annual report. $131 million of that is due by the end of this year.

"Under Armour is going through the process of revisiting all deals with their various collegiate programs. I'm sure their intention is to readjust all their contracts," Gladchuk said. "Every business must address the realities of market conditions.

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Under Armour seeking to end $280 million deal with UCLA

Under Armour seeking to end $280 million deal with UCLA

When Under Armour signed a 15-year, $280 million deal with UCLA in 2016, it was the largest deal in college sports history. Now, less than five years into the deal, Under Armour is attempting to get out. 

According to the Los Angles Times, Under Armour recently informed UCLA that they want to terminate the deal because UCLA hasn't provided the marketing benefits they agreed upon when pen met paper four years prior. 

“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 to the Los Angeles Times. “The agreement allows us to terminate in such an event and we are exercising that right.”

UCLA athletic director Dan Guerrero will be ending his 18-year tenure with the school at weeks end -- he'll be replaced by Martin Jarmond who has served as the William V. Campbell Director of Athletics at Boston College for the past three years. Even with the end near, Guerrero is attempting to salvage the partnership.

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“We are exploring all of our options to resist Under Armour’s actions and will share more information as we can,” Guerrero wrote. “We want to reassure you that UCLA Athletics remains committed to providing our hard-working staff and student-athletes with the footwear, apparel and equipment needed to train and compete at the highest level.”

UCLA athletics have struggled recently, specifically their football and basketball program. The football team's last winning season came in 2015 while the basketball team hasn't touched the NCAA tournament since 2018.

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