Sponsorship of Adidas for Chelsea FC is coming to an end after mutual agreement.
If you thought that the sponsor company only pays the club to sponsor its games, you are in the wrong. This time, in order to break the deal, the club has to pay up a significant sum. Adidas is known to be one of the largest gear makers for athletes in Europe. The company had a sponsorship deal with Chelsea Football Club. The company had tied up and agreed to sponsor its games and sportswear as well. The pact is being ended about six years before the contract would have expired.
Adidas, the German based sports and athletic wear and Supplies Company, stated that the agreement with the club would end by June 30th 2017 instead of June 2023 which was the initial deal. The agreement is being ended to allow the club to start another agreement with another competitor brand. The rival company has not been named as yet, but it will probably be between Puma and Nike. Puma is also a German based athletic wear brand that usually takes up competitive deals with Adidas.
The original deal that was formed between Chelsea and Adidas was a ten year deal that amounted to 290 million in pounds. The deal had started in 2013. At the same time Adidas has signed on another massive deal for ten years with Manchester United. Adidas is also sponsoring for AC Milan, Real Madrid and other individual athletes like Paul Pogba, Gareth Bale and Leo Messi. Sponsorships lead to high exposure for athletic brands. They get key teams as well as players to sponsor their gear, which is worn during matches as well as for casual outings. Most athletic brands have started to bid aggressively for sponsorship pacts.