American athletic apparel manufacturer, Under Armour plans will soon end its deal with UCLA as it has not received the marketing benefits that it has been paying for. The $280 million deal, signed four years ago, is the largest apparel agreement in the history of US collegiate sports. The deal allows Under Armour to end it in such a scenario and the company seems to be only exercising its rights. Meanwhile, UCLA has made it clear that it will contest Under Armour’s move.
The deal is equally significant for both Under Armour and UCLA and therefore cancellation can bring more losses. While UCLA athletic department, which took a loan from the University to cover its $18.9 million shortfall for 2019, is already facing huge budget deficit, it’s not much different for Under Armour as well.