MLS and Adidas have signed a six-year extension of their partnership through '24. Both sides did not disclose the terms of the agreement, but industry sources said that the extension is valued at $700M. Adidas will continue as the league’s official supplier, outfitting all MLS clubs and their affiliated youth clubs, as well as providing the league match ball. MLS and Adidas will formally announce the deal later today at a press conference ahead of the All-Star Game in Chicago. The renewal builds upon a partnership that has existed at some level since the league's inception in '96, when three clubs had deals with the brand. Adidas signed a leaguewide partnership in '04 with a 10-year, $150M pact. That agreement was amended in '10, when the two sides agreed to an extension through '18 that was worth about $25M annually. The new deal, valued at more than $117M annually, represents an increase of roughly 368% more than the previous deal. It marks Adidas' largest investment in soccer in North America, as well as one of its biggest deals globally. The two sides began negotiating the extension roughly a year ago, with both sides preferring to extend as opposed to letting the deal hit the open market.
FOREVER YOUNG: The new deal will also see an increased focused on youth development, with Adidas and MLS partnering on expanding the league's youth program, as well as helping to provide higher-level competition to young players. Adidas will utilize its multi-platform content platform, Creator’s Network, to work with MLS on providing more enhanced and in-depth storytelling and content for both local and national audiences.
