News circulates that Under Armour (UA) is going to pay a whopping $280 million for a schoolwide shoe and apparel deal with UCLA. The 15-year deal amounts to $18.7 million per year. The deal tops the $NKE deals of $250 million for Ohio State and Texas. Roughly $2 million per year isn't a huge difference, but the money is starting to add up to significant amounts. Some of the media lists this as a big win for Under Armour, but the only real winner is UCLA. Remember that UA has been growing revenues at 30% while UCLA was on Adidas since 1999. My guess is that the average UCLA student wears far more UA gear than Adidas. Nearly $19 million per year is a hefty price to pay for something that doesn't change the apparel landscape. The company forecasts revenues reaching $5 billion this year so $19 million isn't by itself material, but the profit margins are razor thin. Investors need to watch for this pricey stock to forecast lower margins in the near term. Disclosure: No position