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Value of Auburn’s Under Armour deal has decreased significantly
By Cody McClure
Published:
Auburn’s 10-year apparel deal with Under Armour that included $10 million in shares has apparently lost more than 75 percent of its value in just two years, according to a report from AL.com.
When the deal was made in October 2015, Under Armour shares were trading for over $100 a share. As of Thursday evening, they were trading for just $11.78 per share.
So, what’s the value for Auburn now?
Just around $2.3 million, according to estimates from the report.
“Even factoring in Under Armour’s stock split in April 2016, that’s a significant loss of value for Auburn,” it stated.
“It’s a 10-year deal so I’m not real concerned about it,” Auburn athletic director Jay Jacobs told AL.com back in February when the stock was dropping. “We’re not using it for our budgeting. It was just a great way for Under Armour to step up and do more for us and we appreciate it.
“So we look forward to the day that we cash in because even though it’s half (of what it was worth), it’s more than we had.”
The Under Armour deal reportedly runs through June 2025.
Cody McClure is an SEC Football Writer for Saturday Down South. He lives in Knoxville, Tennessee, where he also co-hosts a midday sports radio show for FOX Sports. Cody previously worked for Athlon Sports.
