IAAF officials believe that the decision by adidas to end its sponsorship deal early "will not leave it out of pocket," according to Ron Lewis of the LONDON TIMES. The company "is understood to have asked to end its contract as one of the body’s leading sponsors" after concerns about the IAAF’s role in covering up doping. The 11-year deal worth $3M a year was to run until the end of '19. The IAAF "still expects to get its money, saying it has been underwritten by Dentsu, its commercial partner, which negotiated the deal." The IAAF could, however, "be hit by the loss of equipment supplies." Camera brand Canon said that it "would not be breaking its contract." Law firm Charles Russell Speechlys sports deals expert Jon Walters said, "If the IAAF accept that adidas are going and they can’t stop them, they will want to make sure that however that is framed it doesn’t give their other sponsors the right to go" (LONDON TIMES, 1/26). The PA reported Nike "is expected to be offered the opportunity to take over as an IAAF sponsor." The prospect of Nike "being tempted to replace adidas also looks possible," especially given the 38-year relationship between the company and IAAF President Sebastian Coe, who took over from Lamine Diack in August (PA, 1/26).
CRISIS TALKS: In London, Ben Rumsby reported Coe is "locked in crisis talks" with adidas execs. He is attempting to talk the IAAF's "biggest backer" out of tearing up its 11-year, £23M ($33M) contract with the scandal-plagued governing body. Coe is also "in direct contact" with adidas in a bid to reassure the company that there would be "no repeat of what an independent investigation this month found to be 'endemic' corruption within the IAAF." The IAAF’s remaining partners -- Seiko, TDK and Toyota -- "did not respond to requests for comment." Whether adidas carries out its withdrawal threat "could depend on its ability to avoid activating any penalty clauses" in a contract it signed in '08. It "may ultimately decide not to pull out altogether but instead look to reduce its funding for a sport that has fallen down its list of priorities irrespective of the doping scandal" (TELEGRAPH, 1/25).
