Taking its “Protect This House” slogan to heart, Under Armor is taking its relationship with the University of Maryland to the next level, even as it pulls back on similar agreements across the country.
The state’s flagship university and the Baltimore-based athletic footwear and apparel maker founded by former Terps football player Kevin Plank have agreed to a new contract that will provide $98 million to Maryland over 12 years. The agreement would begin on July 1 and extend until June 30, 2036.
The proposal will be reviewed Friday by the University System of Maryland Board of Regents.
“The University of Maryland, like Under Armour, is special. We will always be connected because our brand was literally born in the countryside of College Park, so this extension further solidifies our commitment,” said Plank, CEO of Under Armour. “Through this partnership, we will continue to gain access not only to Maryland athletes, but also to their entrepreneurial mindset and shared passion for innovation. “The proximity to Baltimore and the level of elite talent they attract as the state’s flagship institution gives us even more reason to be excited.”
Terps athletic director Damon Evans said the parties have been working on the extension for the past nine months.
“We value our partnership with Under Armour,” Evans said. “There is a lot of pride in being able to represent a brand that is built in this state, a brand that was founded by someone who went to this institution, someone who has been a great partner, someone who has played soccer here. So this is a really good deal for everyone involved and, as we like to say, we think it’s an iconic deal.”
With an annual price tag of nearly $8.2 million, Maryland joins an exclusive tier of colleges and universities with deals believed to range between $8 million and $10 million per year. As of 2023, that group included Notre Dame and Wisconsin (Under Armour), Michigan, Ohio State and Texas (Nike), and Kansas, Louisville and Nebraska (Adidas).
In recent years, Under Armor has retired what was an ever-growing portfolio of schools. The company ended its partnerships with Cincinnati, Hawaii and UCLA. Auburn and California went to Nike, and Boston College went to New Balance, but Under Armor still maintains sponsorships with South Carolina and Utah.
The brand’s pullback came as it restructured and restructured amid stagnating sales, particularly in its key North American market.
Although the Terps did not start a bidding war with other sports brands, Evans said he is satisfied with Under Armour’s offer.
“We had a relationship with what we believe is an iconic brand, and we were able to sit down and come to an agreement that we believe was to our liking and our value,” he said. “I would tell people this: make no mistake, because we are not evaluating the market or understanding what the institutions are getting or understanding the agreements that exist. We did all our due diligence. This was not something we took lightly. By doing our due diligence, we were able to find out what similar programs were getting, figure out where we fit in the market and make a decision based on that.”
The new contract would eclipse the previous 10-year partnership between the entities. That contract, which is in effect since July 1, 2014 and expires on June 30, guaranteed almost $33 million in rights and sportswear from Under Armor to the Terps.
Evans attributed the expansion’s increase in value to the university’s triumphs in sports.
“We’ve had a lot of success at the University of Maryland,” he said. “Since we joined the Big Ten (in 2014), we have won 49 championships and I wanted you to know that. “I think we were one of the founding schools of Under Armor and I think our football program and our basketball programs, which get the most visibility, have continued to improve.”
While “certain elements” of the proceeds will go to the department’s marketing fund, Evans said the rest has not been earmarked for specific projects or teams. He said he believes the contract will help both parties continue to develop products that benefit the school’s athletes and consumers in the general public.
“When you’re talking about deals of this size and magnitude, the length of the deal shows a strong commitment on their part, as well as a strong commitment on our part,” he said. “And to see them continue to innovate and add more things to their products and make things better, this is important to us because when you have agreements like this, it allows us to provide our student-athletes and coaches with the things that they need. “We will be able to compete at the highest level and that is what we want to continue doing.”
Plank echoed that sentiment in his statement.
“We think what makes this 12-year extension so unique is the ability to use them as a resource to build our team and test our product,” he said. “Use Maryland teams and athletes as true evidence of some of our most important advancements in athletic innovation. “Together, we will come together and work to make ALL athletes better through passion, design and the relentless pursuit of innovation.”
The connection between Maryland and Plank, founder and CEO of Under Armour, is highly publicized. Plank graduated in 1996, joined the football team and has been a strong supporter of the school’s athletic programs.
Evans said he values the opportunity to maintain a partnership with a graduate and strengthen a brand in the state.
“They remain partners and our relationship is mutually beneficial,” he said. “It is a Maryland-based company and I believe in trying to do business with institutions within the state of Maryland. And obviously Kevin Plank is someone who has been a great partner and alumnus as a former football player here and a great ambassador, a great friend and a great contributor to our overall success. All in all, this is great for the University of Maryland and I am excited to continue the relationship.”
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