Under Armour has agreed to pay UCLA nearly $67.5 million to settle the school’s lawsuit with the company, according to a report in the Los Angeles Times.
UCLA was seeking over $200 million in damages in its original lawsuit filed in August 2020 over Under Armour’s terminated UCLA contract.
On May 26, the two sides agreed to the settlement, which required Under Armour to pay UCLA $67,491,275, absolving both parties of any liability.
“UCLA is one of the most recognized and respected collegiate names around the globe,” said Vice Chancellor for Strategic Communications Mary Osako in an emailed statement. “We are gratified to have resolved this matter in a way that benefits our student-athletes and the entire Bruin community.”
The lawsuit and settlement came after Under Armour, in June 2020, announced that it intended to terminate a 15-year, $280 million deal four years into the agreement citing “marketing benefits” that UCLA had not provided “for an extended time period.” Under Armour also attempted to invoke the force majeure clause in the agreement after UCLA stopped all athletic events after the pandemic began.
The deal, negotiated by former athletic director Dan Guerrero, marked the largest apparel agreement in the history of collegiate athletics at the time. The brand cited “marketing benefits” that UCLA had not provided “for an extended time period.”
In August 2020, UCLA sued Under Armour for more than $200 million for breach of contract, arguing that Under Armour used the pandemic as a pretext to pull out of its agreement. In September 2021, Under Armour countersued UCLA, claiming the school violated a separate agreement by covering Under Armour logos with social justice patches on the uniforms of its football and basketball teams. Both lawsuits were dropped in light of the settlement, which includes a mutual non-disparagement clause.
In August 2021, LA Superior Court Judge H. Jay Ford, III denied Under Armour’s attempts to dismiss UCLA’s lawsuit, paving the way for the settlement.
Nike and Jordan Brand now represent the UCLA Bruins on a six-year, $46.5 million deal that started in 2021.
Under Armour continues to outfit several major college sports programs, including Notre Dame, Auburn, Wisconsin, and Utah.
“Under Armour remains committed to all student-athletes and wishes UCLA and the entire Bruin community well,” Under Armour said in a statement.
Photo courtesy UCLA/Shutterstock
