Chelsea, Adidas To Terminate Partnership After '16-17 Season, Six Years Ahead Of Time
Chelsea and adidas have decided to end their partnership prematurely at the end of the '16-17 Premier League season, six years ahead of time. The agreement will now end on June 30, 2017 and not, as originally agreed, on June 30, 2023, adidas said in a statement. The London-based club signed a 10-year contract with the German sportswear company, thought to be worth £30M ($43M) per season, in '13. The mutually agreed early termination will allow Chelsea "to enter a new equipment agreement with a competitor," the statement added. Nike and Puma are the likeliest candidates to take over as the Blues' official kit supplier. U.S. brands Under Armour and New Balance could also be interested with both trying to increase their global football presence. The news will have a positive effect on adidas' bottom line. The company announced that it will receive a payment from Chelsea in '17 as compensation for the early termination. However, the estimated €50M ($57M) payment will already positively impact adidas' profit in the second quarter of '16. Its net income is set to increase by around 25% to around €900M ($1.03B) this year, the company said. Adidas' operating margin is also projected to increase to a level of around 7.0%. At the time of signing, the kit deal between Chelsea and adidas was the richest in EPL history. It has since been surpassed by adidas' 10-year, £750M ($1.08) deal with league rival ManU. Chelsea and adidas have worked together since '06. Adidas' stable of partners also includes Real Madrid, Bayern Munich, AC Milan, Lionel Messi and Major League Soccer.