UNM accuses Dreamstyle of contract breach
University says it is owed $1.1 million
The University of New Mexico is pursuing legal means to recoup nonpayments by Dreamstyle Remodeling Inc. following the terminated sponsorship agreement between the athletic department and the Albuquerque-based company.
Dreamstyle obtained exclusive naming rights to The Pit and University Stadium in 2017, signing a 10-year agreement worth $9 million that slapped the company’s name and logo on both facilities. It was hailed as a long-term relationship between the state’s flagship school and a locally owned business with a history as a strong Lobos booster.
UNM filed a complaint for breach of contract seeking $1.1 million in unpaid funds between 2017-19. The initial agreement called for Dreamstyle to pay $1 million by
May 31, 2017, and $800,000 by June 15 every year for the remainder of the deal. Delinquent payments were to incur a late fee of 2 percent per month.
Dreamstyle was given several perks, including naming rights on both facilities, concourse displays in each venue, signage inside each facility, suites for football and basketball, access to The Pit and University Stadium for private events without paying facility fees, and access to UNM coaches for speaking and commercial engagements.
UNM claims Dreamstyle made its initial $1 million payment on time but failed to make its first $800,000 payment by June 15, 2018. The complaint alleges the school and Dreamstyle entered into an interim payment schedule in early 2019 after UNM terminated its relationship with Learfield Sports in June of that year.
Learfield is a multimedia entity that facilitated the initial agreement between UNM and Dreamstyle, but the sponsorship agreement between UNM and Learfield was terminated in June 2019, when UNM entered into a new multimedia rights contract with Outfront Media.
The complaint says Dreamstyle paid UNM an additional $400,000 in 2019 and another $100,000 in April of this year. The complaint states that Dreamstyle believed the most recent payment officially terminated its agreement with UNM, but UNM alleges otherwise.
The complaint says Dreamstyle has an unpaid balance of $7,500,000. For the period the agreement was in place, Dreamstyle was on the hook for $2.6 million, leaving an overdue balance of $1.1 million.
In September, UNM removed all signage from The Pit and University Stadium — 15 months between payments made by Dreamstyle.
The school cites numerous losses and damages. Of the original $9 million agreed upon, UNM says it earmarked $6.5 million toward the general athletics fund and an additional $2.5 million to the football program.