UCLA Agrees to $67.5M Settlement with Under Armour

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Under Armour has agreed to pay UCLA $67,491,000 to resolve the school's lawsuit against the sports apparel giant, according to a document reviewed by The Los Angeles Times.

The settlement that was reached in late May ended a fractious dispute that started more than two years ago when Under Armour attempted to unilaterally terminate its record 15-year, $280 million contract with UCLA, prompting the university to sue the company for breaching its agreement, the Times reported.

UCLA initially sought more than $200 million in damages as part of the lawsuit that the school on Thursday requested to be dismissed from Los Angeles Superior Court.

Related: UCLA Sues Under Armour Over Historic Contract

Last fall, Under Armour filed a countersuit, alleging that UCLA was being vindictive when it covered the company logo with social justice patches on the jerseys of football, baseball, men’s basketball and women’s basketball players. That allegation has also been dropped as part of the settlement.

The settlement, which includes a mutual non-disparagement agreement, has been approved by the Board of Regents of the University of California, according to one person familiar with the developments.

UCLA can use its windfall to help offset the $102.8 million debt facing its athletic department that was caused in part by the loss of the Under Armour deal. In December 2020, the school agreed with Nike and Jordan Brand on a six-year, $46.45 million deal to outfit its teams with their respective brands.

“UCLA is one of the most recognized and respected collegiate names around the globe,” Mary Osako, UCLA vice chancellor for strategic communications, said in a statement released after the settlement. “We are gratified to have resolved this matter in a way that benefits our student-athletes and the entire Bruin community.”

At the time it terminated its deal with UCLA in June 2020, Under Armour contended it was allowed to do so because the school had failed to fulfill its obligations on several fronts — by failing to provide marketing benefits during the stoppage of sports caused by the COVID-19 pandemic; by failing to field its baseball team for more than half its games during the 2020 season; and by shaming the company and itself through the resignation of men’s soccer coach Jorge Salcedo after his involvement in the college sports admissions scandal, the Times reported.

Related: Under Armour Seeking End to Record Deal with UCLA

Under Armour later tried — and failed — to have UCLA’s lawsuit dismissed before the sides agreed to the settlement. In previous court documents, Under Armour said it provided UCLA with more than $65 million in cash and products in the three years before it informed the school that it was dissolving the agreement.

The company remains a major player in college sports apparel, outfitting 16 teams in the most recent NCAA men’s basketball tournament, according to Apex Marketing Group, trailing only Nike and Jordan Brand’s combined 39 teams.

“Under Armour remains committed to all student athletes and wishes UCLA and the entire Bruin community well,” the company said in a statement.

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