News February 08, 2021
Under Armour Ending Licensing Deal With NFL
The reported move is part of ongoing cost-cutting measures by the sportswear brand.
Under Armour is pulling back from the most popular sport in America.
In another cost-cutting move, the Baltimore-based sportswear brand is trying to further reduce its sports marketing commitments by ending its on-field licensing deal with the National Football League (NFL).
The Financial Times, which first reported the news, said the deal is worth $10 million to $15 million annually. Effectively, the partnership allows NFL players to wear Under Armour-branded accessories, like gloves, on the field. It also enabled college prospects to sport Under Armour apparel during the NFL Scouting Combine.
Beyond being in partnership with the NFL itself, Under Armour has contracts with individual professional football players, including Super Bowl-winning quarterback Tom Brady. Those contracts are also reportedly being reevaluated.
🏈 Scoop in @FT: Under Armour will end its on-field licensing contract with the NFL as it continues to retrench from marketing commitments.
— Sara Germano (@germanotes) February 3, 2021
(Meaning: future Tom Brady high fives won’t feature UA logos.)https://t.co/IEFY2OoBRe pic.twitter.com/LAonSn6DxH
In a statement to the Financial Times, Under Armour’s Senior Vice President of Global Sports Marketing Sean Eggert said the company is speaking with the NFL about “alternative opportunities that best serve athletes moving forward” and which “ensure the best return on investment for Under Armour.”
Under Armour’s deal with the NFL is reportedly set to expire at the end of this year.
In November 2020, Under Armour continued a revamp and cost scale-down of its business by striking a deal to get out of a $50 million sponsorship with the University of Cincinnati.
The break with Cincinnati has gone far better than Under Armour’s exit from a $280 million sponsorship deal with the University of California, Los Angeles (UCLA), which was the largest branded apparel sponsorship deal in college sports history. UCLA sued Under Armour for $200 million after the apparel maker terminated the deal. The suit is ongoing.
Under Armour will continue to sell its products in the promotional products industry. The company has been executing a restructuring plan aimed, in part, at cutting costs and getting more efficient. While headed in the wrong direction before COVID-19, the pandemic triggered significant losses at Under Armour and compelled the company to slash hundreds of jobs.