Under Armour Founder, Chair & CEO Kevin Plank described his company's new apparel partnership with UCLA, valued at an estimated $280M over 15 years, as a "massive deal for us on so many fronts." The deal marks the most-lucrative pact in college sports, and Plank said, "Geographically it was incredibly important for us to take advantage ... of the seventh-largest economy in the world and say, 'What are we doing with California? And how do we really attack it? And what are the things we can do to really introduce ourselves? ... Are we going to go get the one that matters?' And that's what I think the UCLA community can really be able to feel from us is our introduction of our understanding and our compassion and our respect for the history that's been built and really looking and saying, 'How can we push it forward?'" Plank added, "We're going to be part of the family for a long time" ("The Herd," Fox Sports Radio, 5/24). Plank and UCLA AD Dan Guerrero "noted the importance of maintaining tradition in the new deal." Guerrero said that UCLA and UA will "collaborate on designs." In L.A., Thuc Nhi Nguyen notes the shoulder stripe on the football jersey will "be incorporated into the new look next year." Plank said UA "(doesn't) have anything to prove with a crazy uniform." Plank: "That's our job, to unlock the essence of the UCLA brand" (L.A. DAILY NEWS, 5/25).
THAT ESCALATED QUICKLY: In L.A., David Wharton writes UCLA coaches "have new bragging rights -- and their athletic department has a lot more money -- thanks to UCLA being in the right place at the right time." The school's current partnership with adidas "expires next year, so officials were free to begin negotiating a new contract just as the marketplace exploded." Nike had "recently signed Michigan, Texas and Ohio State -- one after the other -- for record amounts." At the same time, UA was "looking to add a major West Coast program to a growing stable that included Notre Dame, Auburn and Wisconsin" (L.A. TIMES, 5/25). In N.Y., Marc Tracy notes the deal "extends a trend of rapidly escalating contracts" as UA, Nike and adidas "seek greater footholds in the lucrative college sports industry." Since '14 alone, the unofficial sponsorship record has "changed hands five times as prominent programs have signed new agreements." The UCLA deal "represents the continued expansion" of UA into the college space. In just 20 years, the company has "become a considerable thorn in the side of Nike and Adidas in the college marketplace" (N.Y. TIMES, 5/25).
AROUND THE CLOCK: CNBC contributor Pete Najarian said of UA, "We talk about the growth all of the time and how they've invested and they've positioned themselves so well with some of the great athletes and now all of the sudden, we're seeing the expansion into the various schools, and we know how big college football has gotten so you can understand this." Najarian: "They've got to spend this money to get that exposure out there." CNBC contributor Jon Najarian said observers "always need to have some worry" about the costs of these college deals, "but overall the fact that these guys are paying these kinds of the numbers this is something that people watch live, and something that then is a greater value to the people who are running the commercials on there." CNBC contributor Stephen Weiss said, "We don't know what the economics are ... (as) the numbers keep going up higher and higher and you don't know what the payoff is." But Weiss said, "It keeps other players, aside from Nike and Under Armour, out of the market so it's basically a two-horse market so there's a value to that and the competitive threat is removed" ("Fast Money Halftime Report," CNBC, 5/24).
