Under Armour reportedly tries to terminate contract with Cal Athletics

Ethan Epstein/Senior Staff

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Amid the economic effects of the coronavirus pandemic, athletic apparel company Under Armour is reportedly trying to pull out of its contracts with both Cal and UCLA. Both deals were signed in 2016 and were the two highest-paying deals of Under Armour’s public school partnerships. Cal’s deal is a 10-year contract, which is worth a total of $86 million in cash and product. Cal Athletics, which is already facing an enormous budget deficit, receives $3.5 million in cash per year of the deal, according to ESPN.

In a statement from Cal Athletics, the school claims that it is “fulfilling the terms of our agreement and that Under Armour does not have grounds for termination.” With Under Armour struggling to stay afloat financially, Cal and UCLA are likely going to have to fight in court, unless they agree to revise or mutually terminate their respective deals. According to Darren Rovell of the Action Network, however, the deal between Cal and Under Armour was “never signed by both parties.” Though the meaning of this is unclear, both organizations are going to have to speak up in the coming days.

If Cal cannot keep the deal, it will be in massive financial trouble, as fiscal year 2019 alone saw a $24.5 million budget deficit. If Under Armour is able to terminate the contract, Cal will likely have a choice among Nike, Adidas and Jordan — all of which will most likely offer deals much less lucrative than Cal’s current deal with Under Armour.

Contact Shailin Singh at [email protected].