Under Armor paid UCLA $67.5 million to settle lawsuit

Under Armor is set to pay UCLA about $67.5 million to settle Bruins’ lawsuit against them.

UCLA and Under Armor agreed to a settlement in May, which will ask Under Armor to pay $67,491,275 to the school to end UCLA’s lawsuit against the clothing company after it ended its massive sponsorship deal in 2020.

“UCLA is one of the most recognized and respected collective names around the world,” Mary Osako, UCLA’s deputy strategic communications advisor, said in a statement.

“We are grateful for solving this issue in a way that benefits our student-athletes and the entire Bruin community.”

Under Armor struck a 15-year, $280 million sponsorship deal with UCLA in 2016, which set an NCAA record and is the largest in history when it was first signed. But only four years later, Under Armor attempted to dissolve the deal with the claim that UCLA had not delivered the marketing benefits that were initially agreed upon.

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Therefore, the University of California, Los Angeles, filed a lawsuit against Under Armor in August 2020 for more than $200 million. The university alleged that Under Armor failed to fulfill the obligations of the deal and wanted to get out because the company was “struggling financially and has been for some time”.

Under Armor eventually disputed and claimed that UCLA covered some of the Under Armor logos on the T-shirts.

Both lawsuits have now been dropped. UCLA launched a six-year deal with Nike and Jordan in December 2020 worth approximately $46.5 million.

“Under Armor remains committed to all student athletes and wishes the best of luck to UCLA and the entire Bruin community,” the company said in a statement via ESPN.

UCLA, along with USC, announced last month that it would be leaving the Pac-12 for the Big Ten in 2024 — a shocking move that would completely change the team’s landscape and dramatically expand the Big Ten’s footprint. Reportedly, UCLA’s athletic department owes more than $100 million as well, and was in danger of having to cut many teams and sports altogether.

The Big Ten’s move should help out in a big way, especially with the conference’s upcoming media rights agreement that is said to bring in more than $1 billion.

“I inherited a deficit with athletics at UCLA,” Martin Garmond, UCLA athletics director, said earlier this month, via ESPN. “So when you have a big financial challenge, it’s hard to maintain, let alone invest. This move [to the Big Ten] It not only preserves the programs we have now but also allows us to invest in them at levels that can lead to more competitive success.”

Under Armor and UCLA fought a legal battle after their $280 million sponsorship deal expired in early 2020 (Kevin Abele/Icon Sportswire via Getty Images)

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