The Univ. of California on Friday "signed a lucrative sponsorship deal" with Under Armour to be its shoe and apparel provider, and the 10-year, $86M agreement is a "significant improvement" over Cal's previous deal with Nike, according to Connor Letourneau of the S.F. CHRONICLE. The deal features a $3M signing bonus, $3.5M in cash per year and an average annual product allowance of $4.76M, and will "go into effect on July 1, 2017." The deal is the "first sponsorship pact in college athletics to feature a comprehensive, campus-wide relationship," as UA will "provide student internships" and employment opportunities for Cal graduates. UA's contract with Cal furthers its "efforts to work with a variety of schools," and it deepens the company's "roots in the Bay Area." Cal over the next 14 months will work with UA to "redesign all team uniforms." The contract will reportedly put Cal "among the top 10 nationally in sponsorship deals" (S.F. CHRONICLE, 4/23). ESPN.com's Darren Rovell noted Cal "signed what might be the most comprehensive deal in college sports." By "involving the whole campus in negotiations," AD Mike Williams was able to offer UA assets that "haven't been available in other partnerships." The deal will "guarantee that Cal's faculty and student body get a discount on Under Armour's connected fitness bundle, UA HealthBox, and make Cal the home for Under Armour's entrepreneurial contest Future Show" (ESPN.com, 4/22). In San Jose, Jon Wilner noted because of the "massive debt service required" for the renovation to Kabam Field at California Memorial Stadium, Cal's athletic department "is running" at a $17M deficit. The cash from the UA partnership, "combined with income from a new multimedia rights deal expected to be finalized in coming months, will help reduce the deficit over time" (MERCURYNEWS.com, 4/22).
SOMETHING'S BRUIN: The MERCURY NEWS' Wilner noted Cal's deal is now the "largest in the Pac-12, but probably not for long." UCLA’s contract with adidas "expires next year and the Bruins will undoubtedly get a mega-deal that will exceed Cal-UA." Meanwhile, Cal is "expected to sign a new multimedia deal (IMG and Learfield the top options) sometime this summer, and it will pump millions more" into the athletic department's coffers (MERCURYNEWS.com, 4/22).
