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UnderArmour trying to bail on rich UCLA, UCB deals - Printable Version

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UnderArmour trying to bail on rich UCLA, UCB deals - chrisk - 06-29-2020

https://www.nbcnews.com/business/business-news/under-armour-moves-terminate-280-million-deal-ucla-n1232413


RE: UnderArmour trying to bail on rich UCLA, UCB deals - BostonCard - 06-29-2020

The article only references the Cal deal to say that UA also has a deal with Cal, not that it was terminating it.

BC


RE: UnderArmour trying to bail on rich UCLA, UCB deals - chrisk - 06-29-2020

(06-29-2020, 02:53 PM)BostonCard Wrote:  The article only references the Cal deal to say that UA also has a deal with Cal, not that it was terminating it.

BC

from a Cal sports website

Under Armour reportedly wants out of Cal deal too

https://www.californiagoldenblogs.com/2020/6/28/21306012/cal-athletics-under-armour-terminate-apparel-deal-bears-ucla-bruins


RE: UnderArmour trying to bail on rich UCLA, UCB deals - Farm93 - 06-29-2020

(06-29-2020, 03:18 PM)chrisk Wrote:  
(06-29-2020, 02:53 PM)BostonCard Wrote:  The article only references the Cal deal to say that UA also has a deal with Cal, not that it was terminating it.

BC

from a Cal sports website

Under Armour reportedly wants out of Cal deal too

https://www.californiagoldenblogs.com/2020/6/28/21306012/cal-athletics-under-armour-terminate-apparel-deal-bears-ucla-bruins

If it was just UCLA, then I could imagine UA's issue was with some aspect of UCLA or the size of the UCLA deal.
As the UCB's deal is getting terminated too then the issue could still be with some aspect of the Pac-12, but it sure looks to me like UA is simply cutting marketing expenses for financial management reasons.

This has to be an awful time for apparel companies.   People around the world are not playing sports with friends.   People are not shopping for sports apparel.   Many of the retailers that sell sporting goods have or will declare bankruptcy.   Oh, and sports teams are not actively showcasing the apparel to fans in the stands or on TV.

UCLA's AD budget will be really challenged this year, but UCB's AD budget will be a mess.

Historically if the UCB AD had a budget issue they would turn to the Regents and ask for a big chunk of the annual unassigned/discretionary funds, but I suspect those funds will be given to far more essential operations across the UC campuses this year. 

I can't even imagine how ADs will tackle budget planning in this environment.


RE: UnderArmour trying to bail on rich UCLA, UCB deals - chrisk - 06-29-2020

UCLA and Cal will not accept this without a fight.


RE: UnderArmour trying to bail on rich UCLA, UCB deals - BostonCard - 06-29-2020

I dunno. Lots of people on my zoom calls working from home in “athleisure”, but that isn’t an underarmour strength.  I think underarmour was struggling before the pandemic, but everything has been made worse.

https://apple.news/AW9bnLdmCRNOIsTPhnqCw0Q

BC


RE: UnderArmour trying to bail on rich UCLA, UCB deals - Farm93 - 06-29-2020

(06-29-2020, 04:48 PM)BostonCard Wrote:  I dunno. Lots of people on my zoom calls working from home in “athleisure”, but that isn’t an underarmour strength.  I think underarmour was struggling before the pandemic, but everything has been made worse.

https://apple.news/AW9bnLdmCRNOIsTPhnqCw0Q

BC
When you are chillin' at home in "athleisure" the stuff lasts a long, long time.   And for the younger set your friends are unlikely to wonder if you picked up the latest team jersey.

And this doesn't even factor in all the people in the younger set that WERE working in service jobs and can no longer afford to buy the latest set of gear the college players would have worn this season. 

Under Armour won't be the only ones to back out.   The deals apparently included an exit clause.   UCLA probably got more money by allowing that exit option and certainly should have understood it was in the deal. 

Fighting is probably a waste of time even if the contract could be disputed because UA could file for bankruptcy soon.

Time for UCB to threaten to terminate baseball...again.


RE: UnderArmour trying to bail on rich UCLA, UCB deals - akiddoc - 07-01-2020

(06-29-2020, 07:49 PM)Farm93 Wrote:  
(06-29-2020, 04:48 PM)BostonCard Wrote:  I dunno. Lots of people on my zoom calls working from home in “athleisure”, but that isn’t an underarmour strength.  I think underarmour was struggling before the pandemic, but everything has been made worse.

https://apple.news/AW9bnLdmCRNOIsTPhnqCw0Q

BC
When you are chillin' at home in "athleisure" the stuff lasts a long, long time.   And for the younger set your friends are unlikely to wonder if you picked up the latest team jersey.

And this doesn't even factor in all the people in the younger set that WERE working in service jobs and can no longer afford to buy the latest set of gear the college players would have worn this season. 

Under Armour won't be the only ones to back out.   The deals apparently included an exit clause.   UCLA probably got more money by allowing that exit option and certainly should have understood it was in the deal. 

Fighting is probably a waste of time even if the contract could be disputed because UA could file for bankruptcy soon.

Time for UCB to threaten to terminate baseball...again.
The Cal baseball alums raised $9,000,000 last time. It is supposed to be an endowment. If they still have it baseball won't go away. Cal's biggest expenses are the football team and the stadium. Football brings in the most money but it doesn't cover the cost of the team plus the stadium. Total disaster. Cal's athletic department required a $24 million dollar contribution from the university last year. That did not include the $9 million the university is picking up each year on the stadium debt payment (the athletic department covers the other $9 million a year, theoretically.) So basically a $33 million dollar hole last year.

UCLA athletics lost 18 million last year, although most of that was due to severance payments to past coaches. 

Cal could get rid of every men's sport except football and they would still be losing money. Apparently men's track and cross country are expected to either go under or go to no scholarship status like men's gymnastics. The men's gymnastics team operates on half a shoestring. They get about $200,000 in donations and other fund raising a year and that is about what they spend.