re: Under Armour wants to end $280M UCLA deal, but university is fighting to keep it

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Under Armor is the broke dumpster fire

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“Under Armour has recently made the difficult decision to discontinue our partnership with UCLA, as we have been paying for marketing benefits that we have not received for an extended time period. The agreement allows us to terminate in such an event and we are exercising that right,” Under Armour officials said in a statement Saturday.

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But not long after, Under Armour’s sales faltered and the company has been retrenching in the past few years, only to see sales plummet again amid the coronavirus-related economic slowdown.

Kuehl was ousted by the company in late 2018 amid a review of corporate spending at events, on nights out and on gifts to athletes.

Since its sales and profitability slumped, Under Armour has been reorganizing, cutting costs, including laying off workers, and attempting to rediscover its mojo with little apparent success.

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Any loss of revenue would be doubly devastating to a UCLA athletic department already facing a massive budget deficit even before the COVID-19 pandemic led to the cancellation of spring sports and endangered the fall sports calendar.

The department took on an interest-bearing loan from the university to cover an $18.9-million shortfall for the 2019 fiscal year and is expected to go further into the red in 2020.

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