Under Armour delays payments to sponsored athletes

Under Armour's sales took a major hit due to the coronavirus pandemic. The company lost 600 million dollars during the first quarter with stores being shuttered. While some states in the U.S. and countries across the globe have begun lifting coronavirus lockdown restrictions, a rebound for the company is still far off.

As a result of the financial blow the company has taken, they have delayed payments to some of their sponsored athletes. “We’ve been negotiating and working with them and we’ve been able to get some extended payment terms there, which are helpful just in general with our overall capital preservation efforts,” Dave Bergman, Under Armour's chief financial officer, told analysts Monday.

Under Armour didn't disclose which athletes payments have been deferred, the company has a long list of A-list sponsored athletes ranging from Michael Phelps to Misty Copeland. Sponsored athletes are typically paid anywhere between the high-six and up to a seven figure range.

In April, Under Armour named Lisa Collier their new chief product officer. As Under Armour works to compete with other athletic retailers, like Nike, they will have to boost their product offering and think about how to position themselves in a market that currently isn't easy for any apparel retailer.

photo: via Under Armour Facebook page