Under Armour (UA) has backed out of another expensive university apparel sponsorship deal, its third in the past six months.
According to the Baltimore Business Journal, the Baltimore-based apparel company has agreed to a $9.75 million exit fee to get out of its 10-year, $50 million deal with the University of Cincinnati.
Click here to read the story at finance.yahoo.com.
Discussion Questions:
- What is sponsorship?
- Why do brands like Under Armour invest in university apparel sponsorship deals?
- Why do you think some university apparel deals are more valuable than others?
- Based on information from this story, why is Under Armour pulling out of some of their biggest apparel sponsorship deals?
- Why would a school like the University of Cincinnati allow Under Armour to pull out of an agreement like this? Why or why not?
- What is positioning? What is re-positioning?
- According to this story, how does Under Armour intend to re-position the brand?
- In your opinion, will they be able to successfully be able to re-position the brand? Why or why not?