Adidas have written to the IAAF to inform the athletics governing body that it intends to terminate its sponsorship deal. The German based sportswear giant signed an estimated £23 million deal over an estimated 11 years in 2008. However, following further corruption scandals and more reports of doping scandals arising, the German manufacturer has decided to withdraw from the contract three years early.
The BBC have reported that the collapse of the deal will lead to a loss in tens of millions of dollars. The move itself will also cost commercial partner Dentsu millions. Indeed, Adidas’ move to end its relationship with the IAAF has been on the cards since early November following the publication of the World Anti-Doping Agency Independent Commission report, which detailed extensively claims of a state sponsored doping programme within Russia. The Commissions chairman, Dick Pound, delivered a second damning report claiming corruption was embedded within the IAAF, especially under former president Lamine Iack. Current president Lord Coe has said that the IAAF is not in denial and that the withdrawal of Adidas will come as a major blow to the sport in a time of unprecedented turmoil. Adidas is currently the lead sponsor of the IAAF, alongside giants such as Canon, Toyota, Seiko, TDK, TBS and Mondo. The position of other sponsors has not yet been made clear, however it is likely that following Adidas’ move away others may follow.