adminADIDAS, the IAAF’s biggest sponsor, has told athletics’ world governing body it is to terminate its sponsorship deal four years early.
The sportswear giant informed the IAAF of its decision – understood to be a direct result of the doping scandal sweeping the sport – last week.
Sources say the move will cost the IAAF and its commercial partner Dentsu tens of millions of dollars in revenue.
It is sure to come as a major blow for embattled president Lord Coe.
Neither Adidas nor the IAAF – the International Association of Athletics Federations – confirmed the split but both issued short statements.
They both referenced the “reform process” under way as the IAAF attempts to come to terms with a number of damaging revelations. They also said they were “in close contact” with each other, with the IAAF insisting it was in close contact with “all its sponsors and partners”.
Adidas, which designs and manufactures sports shoes, clothing and accessories, has also expressed its displeasure at the corruption scandal that continues to engulf Fifa.
However, the German firm, which signed a £750 million kit sponsorship deal with British football giants Manchester United in 2014, remains the oldest commercial partner of world football’s governing body.
The 11-year sponsorship deal with Adidas was set to run until 2019 and was reportedly worth $33million (£23 million).
However, sources have told the BBC the figure is much higher – as much, in terms of cash and product, as about $8 million (£5,6 million) per year.
This means the projected lost revenue for the IAAF and its agency Dentsu over the next four years alone will be more than $30 million (£21 million). In August, the IAAF said its projected revenue for 2015 was $42,8 million (£30 million). For 2016, it said the sum would jump to $81,9 million (£57,4 million) with added income from the Olympic Games in Rio de Janeiro.
“In terms of finance it is a setback, but it is not fatal. It is a hit they can take,” said BBC athletics correspondent Mike Costello. “But it is about perception. This is a hammer blow.”
Adidas is just one of the IAAF’s official partners, along with Canon, Toyota, Seiko, TDK, TBS and Mondo. – BBC Sport.
Online Reporter