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Under Armour deal?

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Gamerooster

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Although not nearly as important the search for a coach, back in February 2016, South Carolina signed a 10-year deal with Under Armour worth a total of $71.5 million. Then, it was seventh-most valuable apparel deal in college athletics, second in the SEC. 

Over the last 6 months Under Armour has backed out of deals with three colleges including the latest with Cincinnati which has a year less remaining than ours. Without a coach they may decide they want out. The current CEO is quoted as more “tough decisions” could be on the way.

Under Armour exits yet another school sponsorship deal as part of big shrink 

 
The Cinncinatti deal was half over (started in 2015) and was $25 mill, bought out for 9.75 million which is about 40% of the remaining amount of the deal. 

Our deal is 40% over and was worth 71.5 million, or 7.15 mill per year making the remaining 6 years worth $42.9 mill.  40% of that is $17,160,000.

I think if UA offered the Athletics Department $17 million to walk away from the deal, they'd jump at the chance, especially given how we have to eat $14 million over the next few years as well as paying off all the assistant coaches and getting a new coach.  

Just for the love of God don't let us go back to Russell Athletics.

 
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I’m ignorant of how these deals work, so could someone explain it to me?  
I assume from the previous posts that the equipment company pays the universities for wearing their gear and supplies all of it. I’m sure they know their business, but it’s hard for me to understand how they can pay out that much to all of the schools they deal with, supply the gear, and still make money. If that is the case, there must be a whole lot more money in college apparel than I would have ever guessed. 

 
TheKOB said:
The Cinncinatti deal was half over (started in 2015) and was $25 mill, bought out for 9.75 million which is about 40% of the remaining amount of the deal. 

Our deal is 40% over and was worth 71.5 million, or 7.15 mill per year making the remaining 6 years worth $42.9 mill.  40% of that is $17,160,000.

I think if UA offered the Athletics Department $17 million to walk away from the deal, they'd jump at the chance, especially given how we have to eat $14 million over the next few years as well as paying off all the assistant coaches and getting a new coach.  

Just for the love of God don't let us go back to Russell Athletics.
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IF...this is how it would work I agree with you. Cash out for $20 mill...pay off the old coach/staff...and call Adidas!

 
With our fascination with uniform combos, we should clearly switch to Nike.

 
Cockyandproud said:
I’m ignorant of how these deals work, so could someone explain it to me?  
I assume from the previous posts that the equipment company pays the universities for wearing their gear and supplies all of it. I’m sure they know their business, but it’s hard for me to understand how they can pay out that much to all of the schools they deal with, supply the gear, and still make money. If that is the case, there must be a whole lot more money in college apparel than I would have ever guessed. 
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Now you know why UA (Nike, Adidas, etc) gear costs so much.

 
LBC said:
IF...this is how it would work I agree with you. Cash out for $20 mill...pay off the old coach/staff...and call Adidas!
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Starter.  12 year old me wants a poofy gamecock jacket from the 90's lol.

We could ink a deal with Walmart and get all of our stuff from brands they sell.  And1 for Basketball, etc.  

I'm rethinking Russell Athletics, where every uni combo is a throwback.

 
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Shoe stores are problematic right now as far as trying on stuff.  I ended up buying a pair of Rockports from Shoe Carnival a few months ago rather than deal with all the new rules about trying things on.

Gyms are closed.  There are no road races, either.

It has to be tough for all the apparel companies right now.

I am sure they are all trying to rework most of their sponsorship deals right now.

 
These deals are mainly for advertising and promotion but if there is a large fanbase (like Notre Dame) they would also profit on sales of the school's product to those fans. Under Armour is trying to avoid bankruptcy. My guess is if they break even with sales of a school's branded product they would want to keep the deal but if they are losing money they want out.

 
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