The University of California, Los Angeles (UCLA) will receive US$67.5 million (AUD$96 million) in a settlement with Under Armour, resolving the pair’s lawsuit after the apparel company cancelled their agreement.

In June 2020, Under Armour informed UCLA of their intent to terminate the 15-year US$280 million (AUD$398 million) deal, due to marketing benefits, which the college hadn’t provided for an extended period, leading the institution to sue for more than US$200 million (AUD$284 million) for breach of contract.

Under Armour then countersued in September 2021, claiming UCLA violated a separate agreement by covering the company’s logo with social justice patches on the jerseys of its basketball and football teams.

Both lawsuits have now been dropped due to the settlement, which includes a non-disparagement clause.

Commenting on the settlement, UCLA vice chancellor of strategic communications, Mary Osaka, told ESPN: “UCLA is one of the most recognised 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,” she said.

On UCLA and its commitment to other colleges and athletes, Under Armour, said in a statement: “Under Armour remains committed to all student athletes and wishes UCLA and the entire Bruin community well.”

The apparel brand continues to outfit several NCAA Division I colleges, including Notre Dame, Utah, Wisconsin, and Auburn.

In January, The Los Angeles Times reported UCLA’s athletic department was in over US$100 million (AUD$142 million) debt, which in part was from the terminated deal with Under Armour.

Then in June, UCLA announced it would join the Big Ten conference in 2024, citing financial struggles as one of the reasons for the switch.

Additionally, after the deal was terminated, UCLA signed a six-year US$46.45 million (AUD$65.6 million) deal with Nike’s subsidiary brand, Jordan.

Commenting on the financial situation, UCLA athletic director, Martin Jarmon, told ESPN: “I inherited a deficit with UCLA athletics.”

“So, when you have a significant financial challenge, it’s difficult to just maintain, never mind investing.

“This move [to the Big Ten] not only preserves the programs we have now but also allows us to invest in them in levels that can lead to more competitive success,” he said.

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