Under Armour is "renegotiating its sports marketing contracts -- including seeking payment delays to big-name endorsers -- as it deals with sales losses stemming from COVID-19," according to Adrianne Pasquarelli of AD AGE. The company "did not reveal names" of endorsers it contacted. Under Armour CFO Dave Bergman said, "We've been negotiating working with them and we've been able to get some extended payment terms there." Bergman made the comment when asked about the "possibility of pulling back on some sports marketing contracts and endorsement payments." The company yesterday also said that it has "reduced 'certain marketing efforts during this interim period' and is focusing its funds on digital activations." Meanwhile, Pasquarelli noted UA earlier this year unveiled a new brand campaign: "The Only Way Is Through." Unlike other "high-profile pushes" from the company, the effort was "produced in-house" (ADAGE.com, 5/11).
CHARTING A PATH BACK: Under Armour President & CEO Patrik Frisk said of the company's way back from the pandemic, "Our aim is to really get back to the roots of the brand, and competing in athletic performance is our path forward. We're going to do that in a really good way and we’re going to do it through sports, whether it's team sports or individual sports, and we believe that the way to win for us is truly staying focused going forward.” Frisk said over 60% of UA's endorsers have "helped us get people active by creating these workout at-home programs through digital apps and through our ecommerce platform, and we feel that in terms of how to think about sports going forward, sport is always going to be there, sport is going to come back. The timing of it is what’s a little bit uncertain right now, but we're getting ready for it" (“Squawk on the Street,” CNBC, 5/12).
