Jon Dennis
Nov 19, 2024
Unwritten Agreements: The Risks Facing Maryland Athletes in $98M UA Deal
When University of Maryland athletics director Damon Evans announced the renewal of an apparel contract with Under Armour – the deeply troubled, $1.4 billion company founded by UMD alumnus Kevin Plank – he described the college and the corporation as “perfect partners.”
“We are excited that this rich tradition will continue for the next 12 years in a strong partnership with Under Armour,” Evans stated in a June 17 press release about the agreement, estimated to be worth $98 million and set to last until 2036. “This agreement showcases UA’s unwavering commitment to the University of Maryland, our supporters, and our fans.”
While the press release described the “comprehensive partnership” as if the university and the company had hammered out a detailed agreement in writing, university officials claimed no contract had been created when Sneaker Theory requested a copy.
“The document you’ve requested does not yet exist,” Laura Anderson Wright, a University of Maryland lawyer and public records officer, told Sneaker Theory via email in response to a September 2024 request for the contract filed under the Maryland Public Information Act.
When Sneaker Theory checked again in November, there was still no contract to be had.
Bill Carter, a college sports business expert and founder of Student-Athlete Insights, says the lack of a formal contract can lead to uncertainty for the school and the brand, and especially for student-athletes.
“Without a contract, there’s no enforceable agreement, only informal understandings that can lead to misunderstandings or, worse, exploitation,” says Carter, who teaches a NIL course in the Grossman School of Business at the University of Vermont.
NIL is the acronym for name, image and likeness. It refers to endorsement deals that college athletes have been able to pursue ever since the NCAA – under mounting pressure – implemented a rule change on July 1, 2021 that allows student-athletes to capitalize on their publicity rights.
“Contracts protect each party's rights and set clear terms, ensuring all parties know what’s expected and have recourse if things go wrong,” Carter says. “Without one, there's no way to ensure fair and legal treatment, leaving everyone vulnerable.”
“Contracts protect each party's rights and set clear terms, ensuring all parties know what’s expected and have recourse if things go wrong. Without one, there's no way to ensure fair and legal treatment, leaving everyone vulnerable.” -- Bill Carter, sports business expert
Students-athletes at risk
Carter says student-athletes are particularly vulnerable.
“Athletes face the highest risk,” Carter says. “Without a contract, they lack guaranteed compensation, protection of their rights, and a clear understanding of expectations.
“This can lead to loss of income, exploitation, and potential NCAA violations, which could impact their eligibility.”
The June press release from the University of Maryland claimed that – under the agreement with Under Armour – student-athletes can earn direct compensation from the company for promoting its products on the athletes’ social media platforms.
Sneaker Theory made repeated requests for comment from officials at the University of Maryland – including to Damon Evans, the AD, and Jason Yellin, the strategic communications officer for the university – but did not get a response. Under Armour also did not respond.
William Sinclair, the attorney who recently handled the settlement of a securities fraud case against Under Armour, also declined to comment. The historic $434 million settlement of the class-action lawsuit – which claimed Under Armour had duped investors into believing sales were higher than they actually were – was approved on Nov. 7.
Student-athletes at Maryland also declined to speak with Sneaker Theory about the lack of a formal contract with Under Armour.
Carter, the NIL expert at the University of Vermont, said having a clear, written contract “isn’t just helpful – it’s essential to protect everyone’s interests and ensure fair, transparent relationships.”
Jon Dennis is the Fall 2024 and inaugural intern at Sneaker Theory. He is a senior at the University of Maryland, majoring in journalism with a concentration in African American studies. He can be reached at Joncdennis7@gmail.com.