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#pounditFriday, October 30, 2020

UCLA files lawsuit against Under Armour over contract dispute

UCLA Bruins logo

UCLA has filed a lawsuit against Under Armour over a contract dispute between the two sides.

In June, Under Armour informed UCLA that it wanted to end its record $280 million endorsement deal with the school. Under Armour sought to end the deal due to financial struggles and invoked a force majeure clause. They used UCLA canceling sports due to COVID-19 as their justification, saying the school was not living up to the deal by not giving them brand exposure.

“It is unfortunate that Under Armour is opportunistically using the global pandemic to try to walk away from a binding agreement it made in 2016 but no longer likes,” UCLA said in response. “UCLA has met the terms of the agreement, which does not require that games in any sport be played on a particular schedule.”

UCLA argues that it was defrauded by Under Armour. They say the apparel company lied about its financial picture when the school signed a 15-year, $280 million deal with the company.

UCLA is suing Under Armour for more than $200 million, which is what it is owed as part of the deal.

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