Cal confident Under Armour deal will proceed smoothly

Despite company’s troubles, school sticks with $86million deal

Cal’s athletic department is months away from the start of a lengthy business relationship with apparel giant Under Armour.

That would be the same Under Armour that just had its credit rating lowered to junk status and whose CEO recently praised President Donald Trump.

The Bears, who signed a 10-year, $86 million deal with Under Armour last spring, aren’t panicked on either front.

An athletic department spokesperson said via email that Cal has no concerns about the financial under- pinnings of the agreement and Under Armour’s ability to meet its contractual obligations.

Beginning in July, the company will pay Cal approximately $4.8 million annually in equipment, footwear and apparel, plus $3.5 million in cash.

Under Armour recently had its credit cut to junk status by Standard and Poor’s after the company announced a massive slowdown in growth. (It has a market capitalization of about $9 billion.)

“We have no concerns,” the Cal spokesperson said, “though upholding the values UA has expressed as a company are important to us.”

Those values were called into question last week when CEO Kevin Plank, while discussing Trump’s business policies, called him “an asset to the country.”

The comment drew criticism from some of Under Armour’s top endorsers, including prima ballerina Misty Copeland and Warriors star Stephen Curry, who told this newspaper that he agreed with the description of Trump “if you remove the ‘et’ ” from asset.

Under Armour responded with an initial statement clarifying Plank’s position, then published a lengthy letter Wednesday in the Baltimore Sun in which Plank emphasized the company’s commitment to diversity and opportunity.

(UCLA also has signed a long-term agreement with Under Armour that begins in July. Valued at $280 million, it’s the largest apparel deal in college sports his- tory.)

Cal issued a statement last week in response to Plank’s pro-Trump comments:

“Both Cal Athletics and Under Armour agree that ‘our diversity is our strength,’ and, similar to our university as a whole, we share a vision of achievement through innovation, research and entrepreneurship.

“As Under Armour has stated, it is a company focused on policy and not politics, and believes ‘in advocating for fair trade, an inclusive immigration policy that welcomes the best and brightest and those seeking opportunity in the great tradition of our country.’”