"In light of this, I'd like to formally extend a $205 million, 10-year contract offer to have CamSoda, a leading adult entertainment webcam company, to become the new official partner of UCLA Athletics," CamSoda Vice President Daryn Parker said in a statement. "With our passion for all sports, we would love nothing more than to become affiliated [with] UCLA, one of college sports blue blood programs."
Under Armour released a statement Saturday announcing its decision to terminate the 15-year, $280 million contract with UCLA due to "paying for marketing benefits that we have not received for an extended period of time."
Forbesreports that shares of Under Armour fell by nearly 20 percent in February after the company projected sales would plummet by $50 million to $60 million next quarter due to the coronavirus.
The Los Angeles Times outlines the terms of the deal, which stated that Under Armour agreed to give UCLA $15 million up front with an additional $11 million coming in every year for rights and marketing fees. UA would also supply the school with an average of $7.4 million worth of clothing, shoes, and equipment each year, and contributed $2 million over the course of eight years for athletic facility upgrades.
UCLA reportedly hopes to keep its Under Armour deal intact, especially since the athletic department reported a near $19 million deficit last year, which will be covered by the school through an interest-bearing loan, perThe Mercury News.
All of this comes as UCLA athletics director Dan Guerrero is set to retire on July 1 after 18 years, leaving this entire mess for Martin Jarmond to clean up.