Auburn AD John Cohen addresses upcoming exclusive negotiating window with Under Armour
LAGRANGE, Ga. — Auburn athletics director John Cohen, while still relatively new on the job, talked about the school’s expiring Under Armour contract on Wednesday during an alumni event.
The Auburn-Under Armour relationship that began in 2006 was continued with a new nine-year, $78.1 million deal the school and the athletic apparel company announced in 2015. The new contract included $22.5 million in cash and $10 million worth of Under Armour stock in the deal that runs through the middle of 2025.
That stock is now worth less than $2 million.
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According to the school’s contract with Under Armour, Auburn’s exclusive negotiating window with Under Armour closes on September 1, 2023. Auburn will become a manufacturer free agent unless a new deal is agreed upon before then.
“We’ve had conversations with Under Armour,” Cohen said. “My knowledge of the history of this relationship is a little bit limited, although I’m getting information from our coaches, student athletes and our fans have an opinion. We’re doing a lot of research. We will do our due diligence and be ready to have conversations about the future of Auburn and our apparel partner. We’ll see where it takes us in the future.”
Auburn, which was one of the first schools to sign with Under Armour, renegotiated the final year of its original 10-year contract as part of the new package in 2015. The $78.1 million contract was worth $8.68 million annually to Auburn athletics, trumping the old 10-year contract that was worth $36.5 million and paid the school $3.5 million annually.
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The new contract provided more product allotment for each of the school’s 21 sports, more money from the company, Under Armour stock and an increase in the royalty rate Under Armour will pay for each item sold on the retail level.
Notre Dame’s 10-year contract with Under Armour, believed to be worth $90 million, is set to end after next season. UA replaced Adidas as Notre Dame’s apparel outfit in 2014, in what was at the time believed to be the most lucrative apparel contract in college athletics history.
Over the last several years, Under Armour, experiencing falling sales and stock prices, has worked to cut costs by restructuring or ending sponsorship contracts with athletes, schools and professional leagues, including the NFL, Sports Illustrated reported. In many ways, the company has withdrawn from being a major player in college athletics.
SI reports the Baltimore-based outlet has canceled deals with UCLA, Cal, Hawai‘i and Cincinnati, and Boston College ended its relationship with the company by signing with New Balance and Adidas. As part of a settlement, Under Armour was ordered to pay UCLA $67 million for breaking the deal early. Despite the past setbacks, Under Armour recently released figures that show its 2023 fiscal year revenue is up 3% to $5.9 billion. The company continues to outfit a handful of major college programs, including Auburn, Maryland, South Carolina, Texas Tech, Utah and Wisconsin. But its crown jewel has been Notre Dame.
