adidas today said that it is "in 'close contact' with track and field's governing body, the IAAF, about the sport's doping and corruption scandals," amid reports it is considering ending its sponsorship, according to Nesha Starcevic of the AP. The BBC reported that adidas "told the IAAF it was terminating its sponsorship deal four years early because of the doping affair involving Russian athletics and accusations of deeply rooted corruption under the IAAF's previous leadership" (AP, 1/25). The BBC’s Mark Daly reported adidas "informed the IAAF of its decision ... last week." Sources said that the move will “cost the IAAF and its commercial partner Dentsu tens of millions of dollars in revenue.” Losing adidas is “sure to come as a major blow” for IAAF President Sebastian Coe. adidas also "expressed its displeasure at the corruption scandal that continues to engulf FIFA.” The IAAF's 11-year sponsorship deal with adidas was "due to run" until '19 and was reportedly worth $33M. However, sources said that the figure is "much higher." Other IAAF sponsors include Canon, Toyota and Seiko (BBC.com, 1/24). In London, Ben Rumsby notes adidas also was considering a "breach of contract" claim against IAAF in the wake of claims against former IAAF President Lamine Diack having "orchestrated a cover-up of drug-taking and blackmail of competitors." That could see adidas "refuse to honour any termination clauses" in its contract. A departure for adidas "would remove whatever doubts remain about the seriousness of the scandal" (London TELEGRAPH, 1/25).
THE LONG RUN: In London, Tom Peck writes under the header, “The End Of The Adidas Sponsorship Deal Spells Disaster For The IAAF.” adidas' move at this time comes because "doing the right thing has aligned with its own commercial interest.” The scandals have "stepped on to the field of play," and when the “integrity of the sporting contest is lost, the motivation for your logo to be all over it is lost.” The likelihood of Nike "racing to take Adidas’ place is extremely low" (London INDEPENDENT, 1/25).
