UCLA, Under Armour Drop Opposing Lawsuits Over Defunct Apparel Deal
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After three years of peace and two years of courtroom battles, the UCLA-Under Armour saga has finally come to a close.
UCLA and Under Armour have dropped dueling litigation against each other, according to a report from City News Service on Thursday. The legal showdown was sparked by Under Armour backing out of its exclusive apparel agreement with UCLA Athletics in 2020, just three years into the record-breaking 15-year, $280 million deal between the two sides.
Acting on behalf of UCLA, a lawyer for the UC Regents reportedly filed court papers with Santa Monica Superior Court Judge H. Jay Ford III asking for all litigation to be dismissed. The request specifically asked for the cases to be dismissed "with prejudice," meaning they cannot be refiled.
Any financial details of a potential out-of-court settlement have yet to be confirmed or released. Settlement talks were in progress as recently as two months ago, though, with lawyers telling the judge as much during a June 2 hearing.
UCLA first sued Under Armour for $200 million in September 2020, three months after the apparel company reneged on the agreement. Under Armour claimed that, while competition was suspended during the COVID-19 pandemic, the Bruins failed to uphold their end of the deal when they did not provide the required marketing benefits.
While that did allow Under Armour to invoke a clause in the contract, UCLA argued that voiding the remainder of the deal was not an expressly permitted consequence in the agreement. A judge agreed with the Bruins when Under Armour tried to have the suit dismissed in August 2021, leading Under Armour to countersue that September.
Under Armour agreed to provide minimal apparel to UCLA's teams for the 2020-2021 academic year, despite already calling off the final 12 years of the deal. However, the Bruins covered up the Under Armour logo on all of their in-game jerseys with a "Stand Together" patch, which Under Armour claimed was an attempt to undercut their brand under the guise of promoting social justice.
Lawyers representing UCLA said at the time that there was no intention to be petty or vindictive by hiding or damaging the Under Armour logos in any way.
The cash the Bruins lost out on when Under Armour walked away played a key role in sending the athletic department spiraling into the red over the past three years. While the school was able to pivot and strike a new deal with Jordan Brand and Nike, the six-year, $46.45 million contract did not do nearly enough to save UCLA Athletics from its $103 million of debt.
UCLA made a big move in June that could wipe away those financial concerns in short order, though, announcing that the school would be leaving the Pac-12 in favor of the Big Ten starting in 2024.
The Big Ten is currently in negotiations for a new media deal, and with UCLA, USC and the Los Angeles market joining their portfolio, conference payouts will reportedly top $100 million annually.
The combination of the upcoming Big Ten money and the Under Armour settlement money are expected to give UCLA Athletics enough cash to dig themselves out of the hole and squarely into the black.
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