CamSoda offers $ 205 million to UCLA to replace Under Armor
Just days after it was announced that Under Armor was giving up its $ 280 million deal with UCLA, adult entertainment webcam company CamSoda came up with a lucrative school partnership offer.
“In light of this, I would like to officially extend a 10-year, $ 205 million contract offer for CamSoda, one of the leading adult entertainment webcam companies, to become the new official partner of UCLA Athletics.” , said CamSoda vice president Daryn Parker. in a report. “With our passion for all sports, we would like nothing more than to affiliate [with] UCLA, one of the blue-blooded college sports programs. ”
Under Armor released a statement on Saturday announcing its decision to terminate the 15-year, $ 280 million contract with UCLA over “paying for marketing benefits that we haven’t received in a long time.”
Forbes reports that Under Armor shares fell nearly 20% in February after the company forecast sales to drop from $ 50 million to $ 60 million next quarter due to the coronavirus.
The Los Angeles Times describes the terms of the agreement, who said Under Armor had agreed to give UCLA $ 15 million up front and an additional $ 11 million each year for rights and marketing costs. UA would also provide the school with an average of $ 7.4 million worth of clothing, footwear, and equipment each year, and contributed $ 2 million over eight years for sports facility upgrades.
UCLA hopes to keep its Under Armor deal intact, especially since the sports department reported a deficit of nearly $ 19 million last year, which will be covered by the school through an interest-bearing loan, through The news of Mercury.
It all comes as UCLA athletic director Dan Guerrero is due to retire on July 1 after 18 years, leaving all this mess up to Martin Jarmond to clean up.