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The Honolulu Advertiser
Posted on: Tuesday, March 3, 2009

UH's Under Armour deal turns out solid returns

By Ferd Lewis
Advertiser Staff Writer

In a global economic downturn that has taken big bites out of a lot of University of Hawai'i athletic department enterprises, Under Armour and school officials say the first seven months of their football apparel contract has been a "glowing" exception.

"We're extremely excited about the initial numbers, especially given what is going on with the state of the economy," said Walker Jones, director of sports marketing for Under Armour Inc.

UH football coach Greg McMackin, who, along with associate athletic director John McNamara, put together the deal, said, "they sold a year's worth (of products) in the first five, six months."

Jones said the first year of an eight-year deal with UH, which began July 1, 2008, has been worth "the upper six figures, almost a million (dollars)" on logo wear alone. Jones said the company expected to do well but the "initial numbers have been a pleasant surprise."

In addition, Jones said, sales of non-UH related Under Armour products have also done well. McNamara said, "they have been incredibly pleased and so have we."

Under Armour is the exclusive provider of UH football uniforms, shoes, coaches shirts and other items, and it markets logo wear.

In a lineup of partner schools that include Auburn, South Carolina and Texas Tech, Jones said: "Hawai'i has done very well for us. If you look, per capita, at the alumni base and population density, I'd have to say Hawai'i is right there among the top."

By contract, UH is guaranteed $125,000 in rights fees this year plus product allowances, marketing support and other extras collectively valued at $440,000. McNamara said Under Armour, which was contracted to provide $50,000 in marketing support to UH, has already committed $70,000.

Jones said Under Armour felt there was an "untapped demand" here and UH football could be the "focal point" for the company.

Coming more than six months after the Sugar Bowl, there were questions how much the embrace of UH products would continue. But Sherry Nava, local retail sales representative, said, "The first item we put on the Web site, a polo shirt, sold out within two hours."

McMackin said the apparel has "been a hit with the team. The players love it. It (the relationship) has been even more than I could have expected."

Reach Ferd Lewis at flewis@honoluluadvertiser.com.