UCLA sues Under Armour!
University of California at Los Angeles, better known as UCLA, has sued American sports retailer Under Armour for terminating US $ 280 million sponsorship deal – one of the largest athletic apparel sponsorship agreements in the history of US college sports.
UCLA has accused the retailer of using the pandemic crisis as an excuse to get away from the deal that was signed in 2016.
The University, while filing a breach-of-contract lawsuit in Los Angeles federal court on Wednesday (26 August), is reportedly claiming over US $ 200 million in damages.
In the complaint, UCLA said that Under Armour claimed that it was ending the sponsorship deal as National Collegiate Athletic Association and the Pac-12 Conference had suspended some sports programmes owing to the pandemic.
This led to Force Majeure Event, allowing for the ending of the agreement that would have otherwise run up to June 2032.
In a regulatory filing, Under Armour said that last month its founder Kevin Plank and CFO David Bergman were sent Wells Notices stating that the US Securities and Exchange Commission is likely to ‘allege certain violations of the federal securities laws.’
UCLA, meanwhile, said that had it known about Under Armour violating law and SEC regulation, it would have never entered into the agreement.
Known for sportswear, casual apparels and footwear, Under Armour generated revenue of US $ 5.2 billion in 2018.
We will keep you posted about where the case is heading to!
