Under Armour is set to pay UCLA about $67.5 million in a settlement to resolve the Bruins’ lawsuit against them.
UCLA and Under Armour agreed to the settlement in May, which will require Under Armour to pay the school $67,491,275 to end the lawsuit UCLA filed against the apparel company after it ended their massive sponsorship deal in 2020.
"UCLA is one of the most recognized and respected collegiate names around the globe," Mary Osako, UCLA's vice chancellor of strategic communications, said in a statement.
"We are gratified to have resolved this matter in a way that benefits our student-athletes and the entire Bruin community."
Under Armour struck a 15-year, $280 million sponsorship deal with UCLA in 2016, which set an NCAA record for the largest in history when it was first signed. However just four years later, Under Armour tried to dissolve that deal while claiming that UCLA didn’t provide the marketing benefits that were initially agreed upon.
So, UCLA filed a lawsuit against Under Armour in August 2020 for more than $200 million. The university claimed that Under Armour both failed to perform the obligations of the deal and wanted to get out of it because the company is “financially struggling and has been for quite some time.”
Under Armour eventually countersued and claimed that UCLA covered up some Under Armour logos on jerseys.
Both lawsuits have now been dropped. UCLA launched a six-year deal with Nike and Jordan in December 2020 worth about $46.5 million.
"Under Armour remains committed to all student-athletes and wishes UCLA and the entire Bruin community well," the company said in a statement, via ESPN.
UCLA, along with USC, announced last month that it will leave the Pac-12 for the Big Ten in 2024 — a shocking move that will completely change the collegiate landscape and expand the Big Ten’s footprint significantly. The UCLA athletic department is reportedly in debt for more than $100 million, too, and was at risk of having to cut several teams and sports altogether.
The Big Ten move should help with that significantly, especially with the conference’s next media rights deal reportedly set to fetch more than $1 billion.
"I inherited a deficit with UCLA athletics," UCLA athletic director Martin Jarmond said earlier this month, via ESPN. "So when you have a significant financial challenge, it's difficult to just maintain, never mind to invest. This move [to the Big Ten] not only preserves the programs we have now but also allows us to invest in them in levels that can lead to more competitive success."