Premier League giants Chelsea and kit makers Adidas have ended their sponsorship and sportswear supplier relationship six years before the pact was due to expire.
German-based sport manufacturing giants said in a statement that the agreement would now end on June 30, 2017 rather than in June 2023, adding that the mutual agreement was made to allow Chelsea Football Club “to enter a new equipment agreement with a competitor.
The original Adidas-Chelsea 10-year deal announced in 2013 was worth around £290 million ($420 million), and since then the sportswear firm, that also sponsors individual athletes such as Leo Messi, Paul Pogba and Gareth Bale, had entered an even more staggering deal with Manchester United.
Sponsorship agreements with key teams and players play an important role in getting people interested in athletic brands, but those sponsorship pacts have gotten pricy in recent years, driven up by some competitive bidding. Hence Adidas says it ultimately wants to focus on fewer deals but with a greater focus behind those initiatives.
The company also added that it will book a significant payment made by Chelsea FC that would positively impact second quarter earnings on a one-time basis, Fortune reports.
Chelsea are yet to announce a new sportswear deal, but Amemrican kit makers Nike and German-based Puma are the most active in signing sponsorship deals with Premier League outfits.