UCLA sues Under Armour, the leading apparel brand, and the case is under trial now. The lawsuit claims $200 million from UA against total damages. There is a list of allegations against Under Armour that includes the embellishment of financial status and fraud.
UCLA claims that UA has deceitfully convinced the school to sign a $280 million deal. Moreover, the brand faces charges of contract breach by being unable to do proper product delivery and handle time payments.
On the other hand, Under Armour replied to the lawsuit in a stern tone. They state that they are ready to fight UCLA and win it in court. In an interview, the brand said that they are upset that the University of California chose to file a case. However, UA has the confidence to put forward a defense case firmly. Besides, they seek to stay open to work out appropriate and reasonable transition for UCLA, especially for the student-athletes.
UCLA Sues Under Armour but they plan to fight back
The leading apparel brand went to justify themselves, saying that they honored UCLA’s request even after the contract termination. Under Armour did not stop supplying athletic products for the current year 2020-2021. In their official statement, UA stated that they love sports, which is the only reason they kept supporting the same. However, there is still no certainty when the usual sports scenario will resume.
On the other hand, the Vice-Chancellor of Strategic Communications of UCLA speaks against UA in a recent interview. He believes that the apparel brand is taking advantage of COVID-19 and the global pandemic in the wrong way. They chose to walk away, suddenly breaching a running agreement that was signed in 2016. The VC says that UA has no logical explanation to support its decision. It is because he believes that they are just whimsical. Moreover, Mr. Vice Chancellor adds that UCLA has till now fulfilled every term mentioned in the agreement. So, there is not a single point that mentions a particular schedule according to which any game will be held.
Under Armour breaks the historic sponsorship deal
While speaking against Under Armour, the vice-Chancellor says that the university has filed a case to support the entire UCLA community. The same includes the student-players too. He adds that they are proud of the athletic department that has won 118 national championships. Therefore, UCLA has to support the athletes in every possible way. The University of California points out that UA is unnecessarily using global pandemic. It is a way for them back off from the $280 million sponsorship agreement. Therefore, the university believes there is nothing wrong with accusing them legally. In June 2020, the apparel brand made a sudden announcement that they want to end the 3-year old contract.
Earlier, the University of California had announced that its sponsorship agreement with Under Armour is enormous. Moreover, according to them, it was the biggest deal of its type in the country’s history. UCLA sues Under Armour with a report that states the apparel brand had sent a message to them speaking about a problem. They mentioned that due to COVID-19, there is a low possibility for the brand to get enough exposure. Besides, UA also stated that their decision was mainly the cancelation of several basketball and football matches. However, the University of California does not want to listen to such an excuse that they believe is baseless. Instead, they are saying that the real reason for such a breach of contract is something else. UCLA believes that UA is experiencing financial loss, and therefore seeking options for some cost-cutting.
The disagreement is turning serious
UCLA later stated that they are confident about the fact that the COVID-19 story was just an excuse to back off from the contract. The reality was that UA now does not want to be in association with the university anymore. The University office says that Under Armour further tried to bring up the Varsity Blues college admissions scandal. The brand accused the university of not taking any step even when one of their coaches was a part of the issue. However, UCLA claims that it is yet another excuse that the apparel brand was trying to put forward. The coach in question went on leave just after his arrest. A few days later, the university also accepted his resignation. Presently, UCLA is seeking compensation of over $200 million against damages.