Less than two years after paying to place their logos on the outfield wall of Wrigley Field, Under Armour backed out of their $10.8 million ad deal with the Chicago Cubs. According to a report from the Sun-Times:
“The Cubs filed a federal lawsuit Thursday against former advertiser Under Armour, accusing the athletic apparel company of reneging on a $10.8 million dollar partnership contract.”
Under Armour entered a new agreement with the Cubs last September and agreed to pay “the Cubs $10.8 million to be the ‘Official Performance Brand’ of the team from the 2009-2013 seasons.” Under Armour’s earnings in 2008 were lower than expected and their stock fell 15 percent.
The Cubs found out Under Armour’s decision in December when they “told the team the $10.8 million would not be coming.”
With the current state of the economy, this could be one of many lawsuits filed by professional sports teams…..