Under Armour Agrees To Pay UCLA $67 Million To Settle Contract Dispute

LOS ANGELES — Under Armour has reportedly agreed to pay just over $67 million to UCLA to settle a lawsuit filed after the apparel company tried to end its 15-year, $280-million contract with the university.

The settlement was dated May 26, according to a settlement document obtained by the Los Angeles Times. UCLA initially sought more than $200 million in damages.

The document said the settlement became effective as of the date the university's Board of Regents formally approved the deal.

The university and apparel giant entered into a sponsorship deal in May 2016.

The dispute arose after Under Armour sent UCLA a written notice saying it was terminating the deal in June 2020. The university sued in Los Angeles County Superior Court. Under Armour later counter-sued after the university covered the company's logo with social justice patches on the jerseys of several sports teams, according to the Times.

The two settled to "avoid further expenditure of time and resources and to otherwise address the Dispute and the Action," the document stated.

Under the deal, Under Armour will make a single cash payment of just under $67.5 million to the university. The payment had to be wired within 30 days of May 26. The sponsorship deal was terminated as of June 22, and the university agreed to drop its lawsuit within seven business days of receiving the payment.

Mary Osako, UCLA vice chancellor for strategic communications, told the Times in a statement that the university is one of the "most recognized and respected collegiate names around the globe."

"We are gratified to have resolved this matter in a way that benefits our student-athletes and the entire Bruin community," Osako said.