End Of Adidas-Chelsea Deal Shows Escalating Intensity Of Sponsorship Battle

Adidas will part ways with Chelsea, "getting a payoff" of at least $57M "as a battle to sponsor Europe’s top sports teams intensifies," according to Paul Jarvis of BLOOMBERG. Neither side "gave an explanation for the split," which comes just a week after Chelsea unveiled its new adidas kit for the '16-17 season. The deal was reported to be worth about $43M a year. Berenberg Bank analyst Zuzanna Pusz said that the breakup "comes as a surprise and leads to questions over what really happened behind the scenes." Pusz: "We find the event worrying, raising concerns over the intensifying battle in the European football sponsorship rights." The "abrupt termination" of the Chelsea partnership, which dates back a decade, comes months before Kasper Rorsted is due to succeed long-serving CEO Herbert Hainer. The brand said that the move "illustrates its strategy of partnering with fewer sports teams." Hainer: "We are continuing the concentration process that is part of our sports sponsorship strategy" (BLOOMBERG, 5/12).