US sportswear manufacturer Under Armour has entered into a 10-year partnership with the University of California, Berkeley.
Financial terms of the agreement, which becomes effective on July 1, 2017, were not disclosed, although ESPN.com said the deal is worth almost $86m (approximately $107.8m AUD) in cash and product, and includes a $3m signing bonus, $3m (approximately $3.8m AUD) in cash each year and an average annual product allowance of $4.76m (approximately $6.0m AUD).
Under Armour will replace US sportswear giant Nike as the university’s apparel partner. According to ESPN, UC Berkeley’s new deal is worth significantly more than the one it currently has with Nike, which is set to provide $2m (approximately $2.5m AUD)in product and $150,000 (approximately $188,000 AUD) during the final year of the two parties’ agreement.
Under Armour’s partnership will benefit both the university’s athletics department and the wider campus community. Under the agreement, Under Armour will design and supply footwear, apparel and equipment for UC Berkeley’s 34 Golden Bears sports teams, as well as provide internships and opportunities for employment for graduates.
Under Armour will also supply charitable partnerships and product discounts for campus departments; create fitness and nutrition challenges for students, alumni, faculty and staff; and collaborate with the university on philanthropic and social responsibility initiatives. In addition, Under Armour’s Future Show and Cupid’s Cup competitions will be staged at UC Berkeley’s campus multiple times over the next 10 years.
The deal ties in with UC Berkeley’s recently launched University Partnership Program, designed to secure the university more meaningful campus-wide partnerships.
“Going well beyond a typical apparel contract, this relationship will extend across the entire campus, reinforcing our commitment to a strong, sustainable intercollegiate athletics program, one that is such an integral and fully integrated part of our university,” UC Berkeley chancellor Nicholas Dirks said.
Sourced from SportBusiness.com