Is Utah's relationship with Under Armour in trouble?
For decades, Nike has had a grip on the college landscape and it appeared nothing was ever going to change that.
But then along came Under Armour, who slowly began to make its way into college athletics, particularly in the Pac-12 where Nike was seen as a dominant force.
The apparel and footwear outfitter eventually agreed to extension contracts in 2016 with Utah, Cal and a record-setting deal with UCLA. In fact, the deal with UCLA was a $280 million agreement that began in 2016, and was set to take place over a record-setting 15 years.
But since that deal, and in massive accordance with the COVID-19 pandemic nearly shutting down the nation, Under Armour's stocks have severely dropped. And now, reports came out that the massive company is looking to terminate its deal with the Bruins.
“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,” Under Armour said in a response to the Los Angeles Times article breaking the news. “The agreement allows us to terminate in such an event and we are exercising that right."
“We are exploring all of our options to resist Under Armour’s actions and will share more information as we can,” UCLA athletic director Dan Guerrero said. “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.”
Under Armour then set its eyes on Cal, notifying the school that it intends to break the 10-year, $86 million deal with the school that was originally signed back in 2016.
“We are confident that we are fulfilling the terms of our agreement and that Under Armour does not have grounds for termination,” Cal officials said in a statement reported by The Mercury News.
With two of its three Pac-12 schools going down, many began to wonder what would happen to Utah, the lone conference school remaining in contract with the Under Armour.
Mark Harlan, Utah athletic director, recently released a statement essentially assuring Utah athletes and its fans that all is good in their world with Under Armour.
“We have been a proud partner with Under Armour since 2008 and look forward to the future with them,” Harlan said. “This is a challenging time for all, as we know, but we are tethered as we head into 2020.”
After originally securing a deal with Under Armour, Utah was able to extend that deal for another five more years, beginning in 2011. The relationship was so good, that both parties announced an additional 10-year continuance in October 2016 — thus making Under Armour Utah's primary outfitter over the next decade.
“We’re thrilled to continue our relationship with Under Armour,” former Utah athletic director Chris Hill said at the time. “The relationship has been positive from all angles — first and foremost the many ways it benefits our student-athletes.”
Utah's deal was worth $65 million over the 10 years, which includes nearly $1 million in annual cash and the rest coming via apparel — making Utah not a likely target for the company to cut ties with.
Currently, Under Armour is still the official outfitter for 11 other programs, including nationally-relevant Notre Dame, Wisconson, Hawaii, Auburn and Navy.
