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Sponsorship Strategy Premier League Adidas

Adidas in-line for sponsorship compensation after Chelsea deal ends prematurely

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By Seb Joseph, News editor

May 11, 2016 | 2 min read

Adidas' sponsorship of the Chelsea football team is to end six years early in a move that will see the former receive an undisclosed amount from the latter.

Chelsea

Chelsea to pay adidas compensation

Details of the fee are undisclosed though it will reportedly lift the sportswear maker's net income in the second quarter by a sum in the mid-double-digit million euros region.

The decision is a mutual one and the lucrative sponsorship, which is reportedly worth £300m over 10 years, will now finish next summer. It ends a relationship that dates back to 2006 when Adidas first started manufacturing kits for the club.

The agreement frees Chelsea to formalise a deal with an as yet unnamed rival to Adidas.

"This mutual agreement on early termination of the agreement will allow Chelsea Football Club to enter a new equipment agreement with a competitor of Adidas AG," said the company in a statement.

"As compensation for the early termination of the contract, the Adidas Group will receive a payment from Chelsea Football Club in 2017 that will already positively impact the Group's net income this year.

The move comes as Adidas looks to sponsor fewer properties and channel more of its marketing efforts into promoting its star players like Paul Pogba and Gareth Bale alongside pushing street football. Last year, it united its top teams - Manchester United, Chelsea, Real Madrid, AC Milan and Juventus - under one umbrella strategy for the first time.

Sponsorship Strategy Premier League Adidas

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