The Chicago Cubs filed a lawsuit yesterday saying that Under Armour backed out of its five-year, $10.8 million sponsorship agreement.
According to the suit, the apparel and shoe company told the team last month that they wouldn't be back next year for a third season of the partnership.
Under Armour officials say, in a statement, that it's all a misunderstanding. They say that the initial deal was for three, not five years, but that it was the Cubs, this summer, that terminated the agreement after this season. A new deal wasn't able to be reached.
What's unfortunate about the deal is that I absolutely loved the white Under Armour logo in the outfield nestled between the ivy walls. At $2 million a year, I actually thought it was prudent spending, given the great exposure the brand received.
Sure, Under Armour has deals with other stadiums including Fenway Park, Dodger Stadium and Camden Yards, but the sign was classy, yet intrusive enough to get your attention.
Update: Sources are telling me that it's very clear that the Cubs terminated the agreement and that the suit more has to do with not signing a new deal, which was at a substantially higher per annum price that the previous one.
Questions? Comments? SportsBiz@cnbc.com
