The Chicago Cubs 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, Steve Battista, SVP of 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.”
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 teams stadium, Wrigley Field, in advertisements for its products. According to the team's complaint, Under Armour told the Cubs in a December 12 letter it wouldnt 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, 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.
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
