UA Exits University of Cincinnati Deal (BBJ Story)
Under Armour Inc. has reached a deal to get out of a $50 million sponsorship with the University of Cincinnati, according to documents obtained by the Baltimore Business Journal. A "buy-out agreement" between Baltimore-based Under Armour and Cincinnati terminates a prior apparel deal five years before it was set to expire. The agreement, effective July 1, requires Under Armour to pay a $9.75 million exit fee to Cincinnati and provide $3.65 million worth of product through June of 2021. Under Armour (NYSE: UAA) has been the official outfitter of Cincinnati athletics since July 2015, when both sides entered into a 10-year, $50 million partnership. The arrangement has been among the 20 most lucrative deals in college sports. For Under Armour, the decision to end its sponsorship of Cincinnati comes as the sportswear maker is exiting numerous deals as part of a major cost-cutting overhaul. Under Armour this year terminated its record-breaking $280 million partnership with UCLA and also cut ties with the University of California, Berkeley. The company also decided to end plans for a flagship store on Fifth Avenue in New York. A spokeswoman for Under Armour declined to comment. University officials could not immediately be reached. Under Armour's exit fee will be paid in eight installments due every three months.