Utah's deal with UA includes only about $1M annually in cash, with the rest coming in apparelGETTY IMAGES
The Univ. of Utah is four years into a 10-year, $65M contract with Under Armour, but the school is an "unlikely cancellation target," as the outfitter is currently seeking to end multi-million dollar endorsement deals with UCLA and Cal, according to John Canzano of the Portland OREGONIAN. Utah's deal with UA includes only about $1M annually in cash, and the rest "comes in apparel" (Portland OREGONIAN, 7/1). Utah AD Mark Harlan said, "We have been a proud partner with Under Armour since 2008 and look forward to the future with them. This is a challenging time for all, as we know, but we are tethered as we head into 2020." In Utah, Dirk Facer notes an additional 10-year continuation of the school's deal was announced in October '16, designating UA as the "official outfitter of the university's varsity programs until June 2027." The extension included "agreements for grassroots activation and marketing, as well as opportunities for student internships and scholarships" (DESERT NEWS, 7/1). Meanwhile, in Boston, Rich Thompson notes Boston College is "currently in 'discussions' concerning its future business arrangements" with UA. BC has an apparel and footwear supply contract with UA that "runs through the 2023-24 athletic season" (BOSTON HERALD, 7/1).
MORE THAN IT CAN CHEW? UA's heavy-handed approach to getting out of shoe and apparel deals at UCLA and Cal left some industry experts wondering how the brand could maintain a home in college athletics. What kind of future does UA have in the space after it tried to pull out of overpriced agreements? A source said that it is just negotiations. The brand is not going anywhere. UA, which has 15 college deals, made some bad decisions. Practically everyone in the college space knew at the time that UCLA's $280M deal was well beyond what the market should yield (Michael Smith, SBJ College).
PAY UP: In Baltimore, Lorraine Mirabella notes UA is "under contract to pay" $679M, at a minimum, "over at least five years in total sponsorships with professional teams and leagues, colleges and universities, athletes, athletic events and other marketing commitments." According to the company's '19 annual report, $131M of that amount is "due by the end of this year" (BALTIMORE SUN, 7/1).
TRUTH WILL PLAY OUT: The OREGONIAN's Canzano wrote UA is "using the cover of COVID-19 to try to settle its way out of what everyone quickly realized was an awful contract." Canzano: "That's what Under Armour is really doing here, isn't it?" Sources said that Learfield IMG College "may attempt the same tactic with all 10 of its conference partners." The two others, USC (Fox) and Arizona State (Pac-12 MMR) also "could be leveraged by their partners." Learfield IMG College provides 10 conference members "with a one-stop shop." Athletic departments partner with them to "bundle sponsorship and local media rights in exchange for guaranteed compensation." Protecting that revenue and donor pledges is a "vital issue" (Portland OREGONIAN, 7/1).
