Under Armour has agreed to pay UCLA $67,491,275 to settle a lawsuit filed by the school two years ago. In June 2020, Under Armour tried to terminate a 15-year, $280 million sponsorship deal signed in 2016, claiming that UCLA had not provided the “marketing benefits” the two parties had initially agreed upon “for an extended time period.” In August 2020, UCLA filed a lawsuit against the sportswear company in U.S. District Court in Los Angeles for more than $200 million for breach of contract. In September 2021, Under Armour countersued UCLA, claiming that the school violated a separate agreement by covering Under Armour logos with social justice patches on the jerseys of its football and basketball teams. Both lawsuits have now been dropped in light of the settlement, which absolves both parties of any liability.
The settlement, which includes a mutual non-disparagement agreement, was approved by the University of California Board of Regents, the LA Times reported, citing an insider. The newspaper also wrote that UCLA could use the windfall to offset $102.8 million in athletic department debt caused partly by the loss of its contract with Under Armour. In December 2020, the school agreed to a six-year, $46.45 million contract with Nike and Jordan Brand to outfit its teams with the respective brands.
