UCLA sues Under Armour for more than $200M over 'breach of contract'

UCLA is suing Under Armour for more than $200 million on the grounds of "breach of contract, breach of implied covenant of good faith and fair dealing, and promissory estoppel," according to ESPN's Mark Schlabach.

The Bruins argue the sports apparel company terminated a record-setting contract with the school due to its financial troubles, and not because of the coronavirus pandemic.

"By 2020, Under Armour wanted to get out of that deal-not because of anything UCLA did, but because the deal now seemed too expensive for the financially-troubled sportswear company," the lawsuit says, according to Schlabach. "Under Armour decided that it would use the COVID-19 pandemic as a pretext to 'terminate' the sponsorship agreement. But neither the governing agreement nor the law allows Under Armour to do so. This action seeks to hold Under Armour to the promises that it made."

UCLA agreed to a 15-year, $280-million sponsorship deal with Under Armour in 2016, which was then the largest athletic apparel contract in collegiate sports history.

In June, Under Armour expressed its intentions to end their contract with the school.

"It is unfortunate that Under Armour is opportunistically using the global pandemic to try to walk away from a binding agreement it made in 2016, but no longer likes," UCLA vice chancellor of strategic communications Mary Osako said in a statement. "UCLA has met the terms of the agreement, which does not require that games in any sport be played on a particular schedule."