Under Armour ditches UCLA athletics
- PeteRasche
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Under Armour ditches UCLA athletics
Ouch, man.
Under the guise of the term "marketing benefits", basically they're saying "you guys suck and we're not getting back any cred for having our logo splashed on your gear".
https://www.cbssports.com/college-footb ... efits/amp/
Under the guise of the term "marketing benefits", basically they're saying "you guys suck and we're not getting back any cred for having our logo splashed on your gear".
https://www.cbssports.com/college-footb ... efits/amp/
Re: Under Armour ditches UCLA athletics
Think this says just as much about the financial position of Under Armour as it does the athletic position of UCLA.
- PeteRasche
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Re: Under Armour ditches UCLA athletics
On one hand, sure... you know all the athletic gear companies are a little concerned about the worldwide situation right now... sports don't happen, gear doesn't sell. On the other hand, the story rattles off a bunch of other high-profile teams that UA supplies so it doesn't sound like they are hurting too much. But the UCLA contract was the largest sports gear contract in history (per the story) so dropping it is probably a good idea.
Re: Under Armour ditches UCLA athletics
Oh, they're definitely hurting...stock down 54% for the year vs Nike down 4%. There's something going on there.
Re: Under Armour ditches UCLA athletics
Something apparently includes an SEC investigation into their accounting practices (from November)...
https://www.wsj.com/articles/under-armo ... 1572819835
https://www.wsj.com/articles/under-armo ... 1572819835
- PeteRasche
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Re: Under Armour ditches UCLA athletics
I can just see one of those sign spinners like in the Progressive insurance commercials and ubiquitous in Southern California, spinning a going out of business sign in front of Under Armour stores now. There’s a UA Outlet near me. Might be time to pick up some gear cheap.PeteRasche wrote: ↑Tue Jul 28, 2020 7:28 am UA has bigger issues...r
https://finance.yahoo.com/amphtml/news/ ... 16136.html
Fan since 1974 living in Phelps seeing the upper bowl of Tulane Stadium
Re: Under Armour ditches UCLA athletics
I haven't seen all the details, but the CPA in me assumes they were manipulating sales figures in the past order to paint a more rosy picture. They likely assumed that with the pandemic it was a good time to try and beat the heck out of their books since nobody would question a huge drop in sales. When things improved, they probably would go back to overstating sales claiming a miraculous comeback.PeteRasche wrote: ↑Tue Jul 28, 2020 7:28 am UA has bigger issues...
https://finance.yahoo.com/amphtml/news/ ... 16136.html
It's really stupid, but I'm sure this isn't the only company doing things like this. In some cases, recognizing expenses quicker than they should right now. Beat the heck out of things when times are really bad and then figure that the companies that report profits or reduced losses when things clear up are more likely to survive and/or be able to get financing.
Re: Under Armour ditches UCLA athletics
The article I linked earlier in the thread was from November, so this isn't pandemic-related.
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Re: Under Armour ditches UCLA athletics
Thanks for the analysis, ml. You are probably close to reality.NJwave wrote: ↑Tue Jul 28, 2020 11:31 amI haven't seen all the details, but the CPA in me assumes they were manipulating sales figures in the past order to paint a more rosy picture. They likely assumed that with the pandemic it was a good time to try and beat the heck out of their books since nobody would question a huge drop in sales. When things improved, they probably would go back to overstating sales claiming a miraculous comeback.PeteRasche wrote: ↑Tue Jul 28, 2020 7:28 am UA has bigger issues...
https://finance.yahoo.com/amphtml/news/ ... 16136.html
It's really stupid, but I'm sure this isn't the only company doing things like this. In some cases, recognizing expenses quicker than they should right now. Beat the heck out of things when times are really bad and then figure that the companies that report profits or reduced losses when things clear up are more likely to survive and/or be able to get financing.
I worked for GE back during the Jack Welch cult of personality days in its Power Systems business. We’d go into the year with only about 30% of our orders/sales/EBIT figures even identified, much less any plan to execute. All we knew was that Welch wanted to see double digit growth every year in every business so woe to those who dared to underperform. Those were the days of any bottom 10% performing business or person were sold, closed, or fired. You were given your financial targets and it was do or die. It was amazing how every 4Q we’d go in about 40% shy yet miraculously pull off the target figures. Any whisper of a potential order was booked or sale pulled in. You’d eat your 1Q seed corn but hey, worry about next year next year. Eventually you run out of runway. So every year we’d show double digit growth in sales, orders, and EBIT. Only after Welch got his fat package and was gone did the house of cards start collapsing, started by the GE Capital shenanigans.
Fan since 1974 living in Phelps seeing the upper bowl of Tulane Stadium
Re: Under Armour ditches UCLA athletics
UA pays a ton of money to Spieth and he is still in a relatively long slump. Interesting to see what might happen to that long term deal if UA stays in the renegotiating/reneging business.