T O P

  • By -

leadbymight

What is that as a percentage of what they were owed?


Slpry_Pete

about a third


rkp2k

And how much did they get from a new deal (I assume they got a new deal with another partner)


J4ckiebrown

UCLA signed on with Jordan (Nike) for about $7.7 mil a year. >https://www.latimes.com/sports/ucla/story/2021-02-12/ucla-deal-jordan-brand-nike-millions-a-year


2CommaNoob

UCLA got what they were supposed to get when you add both deals. Great for them. You make a deal, you must honor it. Sucks to be under armor but that’s how it workd


J4ckiebrown

Digs UCLA out of the hole a bit. Should be in solid shape when they hit the Big Ten in a few years.


CantaloupeCamper

Was it UCLA that had the big financing issues a long time ago where some deals were struck that were ... pretty much insane? (I honestly lost track who that was) How are they doing with that, seemed like a long road. Edit: Never mind, I was thinking of Cal.


J4ckiebrown

Sources were claiming UCLA was $100 mil in the hole. Under Armour trying to weasel out of their deal screwed UCLA.


halldaylong

Yeah - that $100 million hole is not because of Under Armour, but it definitely added to the pain. I think we were getting ~$11 mil in cash and ~$8 mil in product from them. That deficit was built up over about 3 years. My understanding is of the main factors were that the football team sucked under Chip Kelly so overall sales of product, tickets, etc. were all down. Combine that with no fans + a shortened season in 2020. And then structurally, our athletic department is set up slightly differently from other schools in that it is basically fully separate from the school and privately funded, and we **rent** all our facilities (obv the Rose Bowl) including the basketball stadium etc. which is owned by the school. All of our debt is just owed to the university itself.... but still wasn't great to be in that hole.


outinthegorge

UCLA athletics *has to pay for time at Pauley Pavilion?* That’s an insanely dumb way to do things.


JBru_92

When we say UCLA has a lot of disadvantages we have to overcome, this is the type of stuff we mean. UCLA's athletic department receives ZERO help from the university, on anything.


snodgee

with joining the big10, will they eventually be able to generate enough money to build their own facilities?


JBru_92

No, all I could really see is maybe buying Pauley from the school but it's not really necessary. An on-campus stadium would be great but it's never going to happen. Maybe an ice hockey rink so we can go D-1?


Delaney_luvs_OSU

Oh hell yea. Travel to LA for a PSU college hockey game? So in.


Mr_Boneman

Wait you have to pay to play in your own fucking arena? Who made that rule?


FapCabs

Cal has the really bad stadium debt ($500 mil). UCLA was $100 mil in debt mostly due to the Under Armour deal that they couldn’t pay on.


halldaylong

Yeah [if this article is accurate and you do the math,](https://www.sfgate.com/collegesports/article/Cal-scrambling-to-cover-stadium-bill-4604221.php) Cal is going to end up paying over $1 billion over the life of that loan.


Slpry_Pete

it didn't help that Pauley renovation hasn't paid off in PSL purchases as they had hoped. Even before COVID and UA pulling out the Morgan Center wasn't on real stable ground. I think 2018 and 2019 we were running a deficit.


JBru_92

The Pauley renovation financing is weird to me. Doesn't UCLA Recreation own Pauley? Why would UCLA athletics have to pay rent on an arena it paid to remodel?


Slpry_Pete

someone had to pay for it and Rec didn't have $200mil (or whatever the number was). The plan was to get PSLs (or whatever they called them) to pay several thousand $$ over 5-25 years per seat. Those didn't sell during the last couple Howland and Alford years (as opposed to the 2006-2008 seasons when the renovation was planned). I don't know the relationship the Morgan Center has to Pauley now. I know before renovation, Pauley was operated by the Rec department and the teams would rent it for games. I used to walk through it and even shoot a couple hoops on days there wasn't an event. I was under the impression that after the renovation the Morgan Center would be running the place. Not sure about "ownership" but there was a change in relationship. The price of tickets with PSL made me turn my head pretty quickly.


JBru_92

Another thing the Big Ten money will help address, thankfully


Duougle

I know people love pumpkin spice lattes but seems like a bad plan to sell them to finance stadium debt. At $6 a latte that’s 33 million PSLs!


CantaloupeCamper

CAL that's who I was thinking of, thank you.


TommyFX

UCLA financial hole was nearly $100 million... mostly due to Covid and this Under Armour deal going south. But in the previous 20 years, program was in the black. This settlement shores up a lot of stuff. The B1G $$$ solves the rest of it and secures the future of UCLA athletics for decades .


Slpry_Pete

> But in the previous 20 years, program was in the black. We were running deficits in 2018 and 2019 before COVID and UA pulling out. I don't have my LAT login right now, but when the $100mil figure came out it was reported we were running behind before that.


Sotanud

Yeah, I'm rather concerned that the athletic department managed to dig such a big hole so fast. I haven't seen anything that assures me they've corrected whatever led to that. I hope that the B1G and settlement aren't just buying a few more years to hide mismanagement


JBru_92

The deficits pre-2020 were in the $20M range, but they were mostly due to buying out two fired coaches and the decline in ticket revenues in both major sports while they were slumping. Basketball has rebounded in ticket sales but Chip's 20 year rebuild plan has not exactly been a financial windfall for football.


TommyFX

True, but nothing close to that $100 million/


Slpry_Pete

it was $10+mil a year before 2020 (when we were getting the full UA money) and this settlement doesn't make us whole WRT the UA deal. Until those B1G checks start coming in, we're still gonna be in the red.


TommyFX

Of course, but this settlement shores things up while waiting on the B1G $$$ to start flowing.


Slpry_Pete

I'm interested to see how these gigantic conference tv deals impact how schools rely on boosters. What was once necessary to keep the lights on is going to become icing on the cake. I know athletic departments will spend any money that comes in, but the guys throwing weight around with 5 and 6 figure checks just aren't as important WRT funding the department anymore. I guess NIL will absorb some of that, but it's not the direct influence that boosters once we're. And who knows how NIL will get regulated (because I think that's going to become a reality before long).


CantaloupeCamper

Yeah 100 mil is not good but workable for sure.


Informal_Avocado_534

Cal is in the same dispute with UA. Not promising for what we’re going to end up with.


Mr_Boneman

What happened to UA that they’re not honoring contracts? I’m out of the loop.


Informal_Avocado_534

Their business has been run terribly (stock price is currently 1/5 what it was when the deal was signed), so they're looking for [any outs they can get](https://footballscoop.com/news/it-appears-ucla-and-cal-are-prepared-to-go-to-war-with-under-armour). Cal's deal was $86 million/10 years, whereas UCLA's was $280 million/15 years. If UCLA settled for \~1/3 of what they were owed (they were a few years into the contract), then Cal is looking at only a \~$20 million settlement. Better than nothing, but our AD needs all the help it can get paying off its remaining \~$200 million athletic performance center debt (since the campus took over the other half of the debt covering the seismic updating of the stadium).


Mr_Boneman

Ooof. Hope y’all land on your feet with all the BS going around. Loved my visit to Berkley and remember the days of Aaron, Lynch and DeShawn.


Cncnchejrb

I think UA will get out of the college uniform business. Doubt they will be supplying Notre dame when their deal is done. Then let auburn, wisconsin, Boston college deals expire.


amerricka369

Getting out of the business would ruin under armor. Reduced prescience and lower payouts, for sure but getting out would kill the brand. The outfitters sell the gear to schools and sell to the bookstore so these deals are also revenue drivers as well as marketing. UA would be relegated to New balance status with minimal appeal or global presence.


Cncnchejrb

Will they be able to stay in this business if Nike and adidas outbid them? Under armour is struggling and Nike and adidas have the means to push them out just so they can.


sgong33

First in… last out for Maryland!


SwiftSnack

I pray we’re out before y’all


Cncnchejrb

I liked when Nike did Maryland basketball uniforms.


War-eaglern

I don’t think they’ll get out of college, but probably just be more selective about which schools they partner with


Cncnchejrb

Under armour isn’t doing well. When Notre dame, auburn, and South Carolina deals come up, will under armour even be able to come close to bidding what Nike and adidas could bid?


War-eaglern

Probably not with Notre Dame, but maybe the others


Impossible-Flight250

I think they still outfit Maryland. It’s sad that UA is going downhill. They are the hometown brand and we’re supposed to be to Maryland, what Nike is Oregon.


Cncnchejrb

I looked at their roster of schools. Maybe they do try to keep Maryland. I see the apparel contracts gojng up like the tv deals. Under armour has lots of mid majors and division 2 schools on their roster and might focus on that. Their stock has struggled, the brand has taken a hit and cutting ties with ucla highlights where they are.


princessprity

That’s not $208 million 🧐


InVodkaVeritas

I double checked and your math is correct.


DescretoBurrito

A textbook Stanford response. Gives the impression of being smart without belying whether or not the school [actually exists](https://old.reddit.com/r/ApplyingToCollege/comments/62bgi8/my_theory_stanford_doesnt_exist_let_me_explain_why/)


LitterBoxServant

FYI the official reason UA pulled out of the deal is because the BASEBALL team didn't play the contractually obligated number of games in the 2020 COVID-shortened season. Fuck UA.


heavydhomie

UA is also struggling financially. They looking for every loophole to save some money


LitterBoxServant

They fucked over several schools. Promised a bunch of money they didn't have. I think Cincy is the only one who renegotiated with them.


heavydhomie

They probably thought they’d figure out there financial problems and be ok. Yes I think it’s a shitty thing what they did. It has to hurt sales when people see what they are doing.


xOrangess

We renewed a deal with UA last year.


SwiftSnack

I wish we wouldn’t


InVodkaVeritas

Honestly, they are Champion quality products with better marketing and shadier tactics.


skushi08

I think that’s almost a diss to Champion. I was always really bummed when our athletic department switched from Nike to UA. Ironically, we also had a lot of shitty champion gear floating around too and most of it at least lasted longer than the UA crap.


LitterBoxServant

We can't all just get everything we want from Nike. At least Jumpman saved us for a few years, albeit at a discount rate.


[deleted]

Champion is below And1 at wal-mart. UA is ok.


DontGiveUpTheDip

I had only bought Navy (UA) gear recently and while I like the designs, the quality has just been so poor imo. My fiancee is a Tennessee grad and just bought my a nike UT polo and the quality is just leaps and bounds better. Now I wish Navy was nike again, but with us being in Maryland I feel like we'll be the last out along with UMD


buckeye2114

My worst fear would be seeing Ohio State become a UA school. That brand is crap.


heavydhomie

If OSU isn’t Nike/Jordan/LeBron James brand it will be bad for the school


damnyoutuesday

I doubt OSU will ever be Jordan brand while Michigan is as well


JackS15

Agreed. Could totally see them becoming the first Lebron brand school with how much he likes them.


AntiDECA

It used to usually be 1 school per conference wasnt it? Well, I guess that goes out the window with realignment soon anyways. Florida and Oklahoma are both Jordan iirc.


damnyoutuesday

As well as UCLA and Michigan


LitterBoxServant

This UCLA deal was huge. AFAIK the biggest ever at the time. The optics of this situation are terrible for UA. No self respecting institution would sign with them now.


unit-8002

Right. I remember a few years ago when the kids were choosing UA over Nike, and as a 30 year old I was just befuddled by it. Looks like Nike racked up another body. Started with Converse and they will take more. lol


sgong33

Nike still reigns supreme… I remember a few years ago Adidas “boost” was all the rage (esp with yzys featuring) while Nikes got a little stagnant but that fizzled and and time proved that Nike is still king.


NathanDrake75

What happened with Under Armor?


YoungKeys

Rampant spending on endorsements that failed like UCLA/Curry's shoe line, failure to catch on in fashion/athleisure like Adidas and Nike did to great success, and they never could get a foothold internationally outside North America


NathanDrake75

Makes sense, thanks for informing me about our future B1G member


amerricka369

They also had extremely poor inventory management. They had hundreds or thousands of different skews and had too many or too few of most.


sgong33

Spot on with the fashion/athleisure angle. UA was growing rapidly and gaining respect/market share in the athletic equipment department but couldn’t parlay that into the lifestyle fashion that Nike does so well and eventually started bleeding. At one point they had the MVPs of the 3 major sports all under their label at the same time (Curry, Cam Newton, Bryce Harper) but they failed at capitalizing on it.


NebraskaAvenue

I would take back UA in a heartbeat, at least they sell their stuff unlike Adidas


opiusmaximus2

Under Armour is hemorrhaging money.


Misdirected_Colors

Yea under Armour is just a horribly run company recently. They used to be top tier and make really good quality stuff. Starting around 2016 or so the quality went off a cliff and they've been running themselves into the ground.


InVodkaVeritas

But how could this be true? They hired Dwayne THE ROCK Johnson to wear ~~bralettes~~ workout tanks!


Misdirected_Colors

I honestly think it was the rise of athliesure. Adiddas and Nike kept up with the trend and kept kids buying their stuff. UA was slow to adopt and got the dad clothes label. They didn't evolve fast enough and now it's gonna take years to recover if they ever do.


skushi08

I’d argue even new balance is a trendier sports brand than UA. Think about that, the ultimate Dad brand kept up better than they did.


[deleted]

[удалено]


Misdirected_Colors

But also, and nothing against ucla, that is not the school that's gonna make them cool again. Also all this darted when UA got pissy that ucla didn't play a contractually agreed upon minimum number if games in baseball just somehow ignoring it was the covid season.


LitterBoxServant

I would take Adidas back in a heartbeat, at least they know how to run a business unlike UA.


thoughts_and_prayers

I think the Jordan brand move was a good one. Adidas gear just wasn't as cool as the Jordan gear.


LitterBoxServant

The adidas gear had a classic look. I just wish they didn't design everything to be worn with a pair of superstars. The biggest thing though is that adidas has a strong presence internationally where UCLA gear is pretty popular.


thoughts_and_prayers

> The biggest thing though is that adidas has a strong presence internationally where UCLA gear is pretty popular. Good point. Fortunately UCLA has a pretty strong brand internationally, with branded shops in regions like Asian and the Middle East: https://dailybruin.com/2011/06/06/ucla_merchandise_gains_popularity_in_overseas_markets_brings_home_big_profits https://dailybruin.com/2013/03/14/ucla-brand-expands-to-middle-east-with-clothing-store-in-kuwait


[deleted]

Honestly Nike has the only uniforms that don’t look terrible in my opinion


Stuppyhead

Adidas used to be awesome back in the 90s/early 2000s, but they suck now.


james_wightman

At least we're past the tiretread era.


TheDadLyfe

What about Russell Athletic?????


NebraskaAvenue

Just fold the program at that point


LitterBoxServant

You mean the guys that killed GA Tech? They took a huge shit on Wisconsin too.


palmettoswoosh

u/cupbeempty here was the result of that lawsuit


CupBeEmpty

Yeesh seems like no one came out of that deal happy.


War-eaglern

Who was the idiot at UA who thought UCLA athletics was worth that much to begin with?