The Chicago Cubs have sued Under Armour for allegedly reneging on a five-year, $10.8 million sponsorship contract to have its logo displayed on the outfield doors in left- and right-center fields. Under Armour disputes the suit, claiming the agreement was terminated after the second year, and a new deal was never signed.”


 

According to a statement from Under Armour received by SportsOneSource, Steve Battista, senior vice president, brand, said, “Under Armour entered into a three-year agreement with the previous management of the Chicago Cubs for a comprehensive marketing package that included the exclusive signage on Wrigley Field. This past summer the Cubs new management sent us a letter terminating the agreement after the second year. Unfortunately, we were unable to agree upon terms for a new deal and one was never signed.”

Battista added, “Under Armour will continue as always to aggressively market its brand and currently has signage in several historic stadiums, including Major League Baseball's Fenway Park, Dodger Stadium and Camden Yards.”


In a complaint filed in U.S. District Court in Chicago, the ball club said Under Armour agreed in principle to the deal and is still using Cubs players and the team’s stadium, Wrigley Field, in advertisements for its products. According to the team's complaint, Under Armour told the Cubs in a Dec. 12 letter it wouldn’t sponsor them for the next season and “would not meet any of its obligations under the agreement.” The Cubs are seeking full payment of the contract price.

 


“Under Armour’s abrupt, unilateral action has left the ball club with no choice but to file suit to enforce its rights,” the team said in a statement.


Two years ago, the team and Under Armour announced an agreement that allowed the clothing maker to become the first sponsor to place ads on two 7-foot-by-12-foot doors set into the ballpark’s ivy-covered left- and right-field walls, according to published reports. The agreement reached in 2007 also gave Under Armour access to the field and players to film commercials, and paired Under Armour with the Cubs to host a variety of events, according to the suit. The suit claims the deal “generated significant publicity” for Under Armour throughout the 2007 and 2008 seasons, which prompted its brand manager Colin Clark to enter a five-year agreement with the Cubs in September 2008.


Under Armour, in exchange for marketing benefits, agreed to give the Cubs $10.8 million to be the “Official Performance Brand” of the team from the 2009-13 seasons, according to the suit.


However, the suit claims that Under Armour's year-end earnings were “lower than expected and did not meet industry expectations.” The company also said it expects its 2008 income to be $10 million less than 2007's.


The suit contends that when Under Armour realized their financial situation in December, they breached the contract and told the team the $10.8 million would not be coming.


“Due to Under Armour’s breach of the sponsorship agreement in mid-December 2008, after most corporations have already committed themselves to sponsorship agreements for 2009, the Cubs have not been able to replace Under Armour sponsorship revenues,” the suit said.