Adidas ends sponsorship of Chelsea after a bad season
Thu May 12, 2016 03:30:pm Sports
2.2K By sosa hills
Adidas AG will get a payoff of at least 50 million euros ($57 million) from London's Chelsea soccer team to end a sponsorship deal six years early, leading the German company to boost its profit forecast.
The decision was reached by mutual agreement, and the partnership will now finish on June 30, 2017, the sportswear maker said in a statement Wednesday after markets closed. The partnership began in 2006 and was renewed for 10 years in 2013. Once the alliance ends, Chelsea will seek a new equipment sponsor, Adidas said in a separate statement.
The abrupt termination comes months before Kasper Rorsted is due to join and succeed Adidas's long-serving chief executive officer Herbert Hainer. Adidas said the move illustrates its strategy of partnering with fewer sports teams. Chelsea, owned by Russian billionaire Roman Abramovich, is coming off its most difficult season in years, having failed to qualify for European competitions next term.
Chelsea signed the £30m-a-year deal in June 2013 and were surprised when the company secured a £75m-a-year deal with Manchester United 12 months later. Chelsea believe they have been one of the world's most successful clubs and the current adidas deal did not reflect their market value.
A spokesperson at Adidas told Sky Sports News HQ
"We will still continue to partner with the club until June 30 2017 and we look forward to the 2016/17 season together."
"Adidas AG wishes to expressly thank Chelsea Football Club for their always professional and successful collaboration, which has included, among other successes, the time of their UEFA Champions League title in 2012 as well as two Premier League titles."
"It's in line with our strategic business plan where we will sponsor fewer teams in the coming years".
The decision was reached by mutual agreement, and the partnership will now finish on June 30, 2017, the sportswear maker said in a statement Wednesday after markets closed. The partnership began in 2006 and was renewed for 10 years in 2013. Once the alliance ends, Chelsea will seek a new equipment sponsor, Adidas said in a separate statement.
The abrupt termination comes months before Kasper Rorsted is due to join and succeed Adidas's long-serving chief executive officer Herbert Hainer. Adidas said the move illustrates its strategy of partnering with fewer sports teams. Chelsea, owned by Russian billionaire Roman Abramovich, is coming off its most difficult season in years, having failed to qualify for European competitions next term.
Chelsea signed the £30m-a-year deal in June 2013 and were surprised when the company secured a £75m-a-year deal with Manchester United 12 months later. Chelsea believe they have been one of the world's most successful clubs and the current adidas deal did not reflect their market value.
A spokesperson at Adidas told Sky Sports News HQ
"We will still continue to partner with the club until June 30 2017 and we look forward to the 2016/17 season together."
"Adidas AG wishes to expressly thank Chelsea Football Club for their always professional and successful collaboration, which has included, among other successes, the time of their UEFA Champions League title in 2012 as well as two Premier League titles."
"It's in line with our strategic business plan where we will sponsor fewer teams in the coming years".
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