Despite controversy surrounding the suits it supplied to U.S. speedskaters, Under Armour (NYSE:UA) announced today its partnership with the team has been extended for another eight years, and the company will remain as the exclusive suit provider for competitions through the end of 2022.
"It has always been Under Armour's mission to make all athletes better, and we are proud to make our biggest commitment ever to the US Speedskating team by providing these championship competitors with leading innovations and training resources to help them fulfill their dreams on the world's biggest stages," noted Kevin Plank, CEO and founder of Under Armour, in a statement.
After the speedskaters did not meet expectations in the Winter Olympics, many began to question whether the Mach 39 suits from Under Armour, which were developed in conjunction with Lockheed Martin, were to blame. But U.S. Olympic Committee CEO Scott Blackmun said, "[W]e do not believe the suits were the problem."
Under Armour began the development of its suits to assist in both muscle support and competition speed for the national team in 2011, and noted it will "continue to supply all athletes with its most technologically advanced training apparel, footwear and performance monitoring systems."
"US Speedskating remains extremely grateful to have such a supportive partner and to have access to Under Armour's game-changing innovations, which have helped propel countless athletes around the world to championship results," said Mike Plant, U.S. speedskating president, in the UA press release. "The length and scope of this agreement send a strong signal about Under Armour's commitment to our athletes and will best position them to skate with confidence and a competitive edge well into the future."
The financial terms of the agreement -- which will continue through the Winter Olympics in PyeongChang, South Korea, for 2018 and one of the six cities to be determined for 2022 -- were not disclosed. In addition to its agreement with the U.S. speedskating team, Under Armour also currently has uniform-exclusivity agreements with the U.S. bobsled and skeleton teams, as well as gymnastics, and the Canadian snowboard team.
Patrick Morris has no position in any stocks mentioned. The Motley Fool recommends Under Armour. The Motley Fool owns shares of Under Armour. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.