Auburn's 10-year apparel deal with Under Armour that included $10M in UA shares has "lost more" than 75% of its value in only two years, according to John Talty of AL.com. At the time of the deal announced in October '15, Under Armour shares were "trading for more than $100 a share." After another "disastrous earnings report released on Oct. 31, Under Armour shares took another big tumble." Even factoring in Under Armour's stock split in April '16, that is a "significant loss of value for Auburn." Auburn AD Jay Jacobs had an "optimistic outlook on the situation" in February. Jacobs at the time said, "It's a 10-year deal so I'm not real concerned about it" (AL.com, 11/2). NBCSPORTS.com's Bryan Fischer noted Auburn is "still in good shape" as part of the original $78.1M deal that runs through '25. The stock could "certainly rebound quite a bit between the current low to a decade from now." It seems like a "pretty clear indication that the granting of stock will likely not be part of any next nine-figure apparel deal going forward after schools learn their lesson from what happened with Auburn and Under Armour" (NBCSPORTS.com, 11/2).
