Adidas to discontinue IAAF sponsorship deal early amidst doping crisis

IAAF's biggest sponsor, Adidas has notified the athletics' world ruling body of its desire to terminate their sponsorship deal four years early.

The decision of the sportwear outfit is not unrelated to the spate of doping allegation sweeping the sport in recent time.

No official statement has yet to be made by Adidas or the IAAF regarding this decision. It is however understood that Adidas informed the IAAF in November it was considering ending their relationship early after a detailed report made reference to the "state sponsored doping" in Russia.

IAAF President, Coe. IAAF image

Investigations have also revealed that the decision will come as a significant loss to the IAAF as it stands to
lose tens of millions of dollars in income.
The 11-year deal was signed in 2008 and due to run until 2019, with the deal reported to be worth $33m (£23m).
Sources however debunked such claim by revealing that the figure is much higher, as much, in terms of cash and product, as about $8m (£5.6m) per year.
This means the projected lost revenue for the IAAF over the next four years will be more than $30m (£21m).

This will further increase pressure and serve as blow for embattled president Lord Coe and eventual withdrawal of Adidas will be a major blow to the sport - and to IAAF president Coe - in a time of unprecedented turmoil.

Former IAAF President, Diack and current President, Coe.

Coe succeeded Diack in August last year and has come under pressure following the publication of Pound's report.
Not only did it claim that corruption was "embedded" in the IAAF, it also claimed that leading figures within it must have been aware.
The report was compiled by an independent commission set up by the World Anti-Doping Agency (Wada).
Earlier this month, the commission's chairman, Dick Pound, delivered another report which that revealed "corruption was embedded" within the IAAF during erstwhile President Lamine Diack.

Within days, the eggheads in Adidas decided to terminate the relationship with the IAAF.
It is understood the German multinational believes the doping revelations are in contravention of its agreement with the IAAF.

It is unclear yet if the IAAF will content Adidas's decision in court, although lawyers at the company are believed to have anticipated such move and preparing for for it.


(c) BBC