- Buy-out agreement reportedly covers $ 3.65 million in product deployment
- The current ten-year contract, which was signed in 2015, should run until June 2025
- Under Armor has also terminated its record clothing deal with UCLA
As part of ongoing cost-cutting efforts amid the coronavirus pandemic, Under Armor has reached an agreement to end its $ 50 million 10-year sponsorship deal with the University of Cincinnati.
According to documents held by the Baltimore Business Journal (BBJ), the Baltimore-based sportswear brand has entered into a “purchase agreement” that will end its formal association with the school four years early.
Under Armor has been supplying clothing and equipment to Cincinnati since July 2015 under a ten-year contract that should run until June 2025. Under that contract, Under Armor would pay the university over $ 1 million annually in addition to providing over $ 3 million worth of equipment annually.
The acquisition agreement reported by the BBJ says the brand will pay an exit fee of $ 9.75 million in eight installments through April 2022, and the university will continue to pay $ 3.65 million in products through June 2021 .
In a statement made to the BBJ, University of Cincinnati Sports Director John Cunnngham said the school and Under Armor “have adjusted the terms of our partnership to make them best for both sides, given the changes in our industry in the past are”. six months. ‘
The news of the termination comes after Under Armor took steps to renegotiate some of its most expensive sports marketing deals, including a $ 280 million apparel deal with the University of California, Los Angeles (UCLA) that is the largest of its kind in the world College sport is.
Under Armor, which is currently in an extensive restructuring process after a year of sharply slumped sales, has also severed ties with the University of California, Berkeley.
Although the apparel deal was terminated early, the BBJ reports that the University of Cincinnati’s sports teams, known as the Bearcats, will be in for the next three years, through June 2024, due to a provision in. Still wearing Under Armor uniforms could be the buy-out agreement that gives the university the right to purchase the brand’s products at discounted prices from BSN Sports, a distributor that sells Under Armor gear at wholesale prices.
Under this provision, known as the “Product Supply Agreement,” Under Armor would still be required to pay universities performance bonuses – for example, the university receives US $ 100,000 if its soccer team wins a national championship.
However, the university can negotiate a new contract with another sportswear company under the agreement at any time.
As part of ongoing cost-cutting efforts amid the coronavirus pandemic, Under Armor has reached an agreement to end its $ 50 million 10-year sponsorship deal with the University of Cincinnati.
According to documents held by the Baltimore Business Journal (BBJ), the Baltimore-based sportswear brand has entered into a “purchase agreement” that will end its formal association with the school four years early.
Under Armor has been supplying clothing and equipment to Cincinnati since July 2015 under a ten-year contract that should run until June 2025. Under that contract, Under Armor would pay the university over $ 1 million annually in addition to providing over $ 3 million worth of equipment annually.
The acquisition agreement reported by the BBJ says the brand will pay an exit fee of $ 9.75 million in eight installments through April 2022, and the university will continue to pay $ 3.65 million in products through June 2021 .
In a statement made to the BBJ, University of Cincinnati Sports Director John Cunnngham said the school and Under Armor “have adjusted the terms of our partnership to make them best for both sides, given the changes in our industry in the past are”. six months. ‘
The news of the termination comes after Under Armor took steps to renegotiate some of its most expensive sports marketing deals, including a $ 280 million apparel deal with the University of California, Los Angeles (UCLA) that is the largest of its kind in the world College sport is.
Under Armor, which is currently in an extensive restructuring process after a year of sharply slumped sales, has also severed ties with the University of California, Berkeley.
Although the apparel deal was terminated early, the BBJ reports that the University of Cincinnati’s sports teams, known as the Bearcats, will be in for the next three years, through June 2024, due to a provision in. Still wearing Under Armor uniforms could be the buy-out agreement that gives the university the right to purchase the brand’s products at discounted prices from BSN Sports, a distributor that sells Under Armor gear at wholesale prices.
Under this provision, known as the “Product Supply Agreement,” Under Armor would still be required to pay universities performance bonuses – for example, the university receives US $ 100,000 if its soccer team wins a national championship.
However, the university can negotiate a new contract with another sportswear company under the agreement at any time.
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