Adidas to End IAAF Sponsorship Deal

German sportswear and equipment company, Adidas is on the verge of terminating its sponsorship deal with the International Association of Athletics Federations (IAAF) four years early. In November 2008, Adidas signed an 11-year contract with the governing body of world athletics which was estimated to be worth around £5.6m a year. However, Adidas now wants to end its relationship with the IAAF after only seven years of the deal and the company’s lawyers have contacted the world athletics governing body claiming that the recent doping revelations constitute a breach of contract. The IAAF will attempt to resist the doping claim as negotiations between Adidas and the IAAF are ongoing. The reputational damage of a blue-chip company walking away from athletics in an Olympic year can never be erased. In a statement, Adidas confirmed it is in talks with the IAAF: “Adidas has a clear anti-doping policy in place. Therefore, we are in close contact with the IAAF to learn more about their reform process.” We are in close contact with all our sponsors and partners as we embark on our reform process,” the IAAF said. The IAAF became engulfed in a doping and corruption scandal in November last year after an independent commission for the World Anti-Doping Agency (WADA) made claims of widespread, state-sponsored doping in Russia.