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Arizona Wildcats Basketball Forums => College Basketball Forum => Topic started by: KansasCityCats on August 27, 2020, 07:29:12 AM
https://www.espn.com/college-sports/story/_/id/29749328/ucla-sues-armour-terminating-280-million-sponsorship-deal-school
Who the hell has attorneys that would agree to sign Force Majeure clauses that allow either party to terminate as a result ANY of the "disturbances" that were mentioned in the article??? UA could have opted out because MULTIPLE catastrophes have occurred for 100+ days since signing this awful deal: SoCal fires, overseas war, pandemic, civil disturbance (BLM), labor actions and/or "acts of god" (the most vague term in history).
I consider UCLA to be a prestigious school, but they hired absolute morons to draft this $280MM agreement. Hell, I think my commercial real estate clients are in better hands with my minuscule 30 pages leases...
Not a good look for UCLA.
The PAC is looking very "UN-smart" right now.
This is actually very intelligent move for UCLA. It's going to be played out under the pretext of lack of financial disclosure and manipulation of financial records at the inception of the original contract. IMO it will get settled out of court, for an undisclosed amount of money. Why is this a bad look for the PAC? I'm a little confused. What looks bad for the PAC is the current commissioner and the excessive fiscally irresponsible actions of his office. Secondly, the media contract and lack of national coverage is what is damaging the PAC the most. The University President are equally responsible for the current state of the PAC.
That force majeure clause doesn't provide as big of an out for either party as it may appear on its surface. Lots to argue over (ie, litigate) there. I agree they'll likely settle this at some point— probably after UCLA mitigates its damages by signing with Nike.
Yup. Nike is probably licking their chops because UCLA has nowhere else to go. Adidas threw their clients under the bus and UA isn't going to renegotiate now... Nike is going to get one hell of a deal.
Puma is also in the market again. Not sure where they would stand, but a big name school would be huge. I was kinda hoping we could get in with them.