Scandal prompts Adidas to cut short IAAF sponsor deal

Adidas have told the IAAF to end their mammoth sponsorship four years early, according to reports.

Adidas has been considering ending its relationship ever since the release in November 2015 of the first report of the World Anti-Doping Agency (WADA) that detailed charges of “state-sponsored” doping by athletes in Russian Federation, reports the BBC.

According to the report, the move will result in tens of millions of dollars in lost income.

In a short statement on Monday, the IAAF said that they were “in close contact with all its sponsors and partners as we embark on our reform process”, but made no specific mention of Adidas.

“It is increasingly clear that far more IAAF staff knew about the problems than has now been acknowledged”, said the report, written by former WADA president Dick Pound and presented at a news conference in Munich.

The IAAF has been engulfed in a doping scandal over the previous year, with a second Wada independent commission report saying “the IAAF Council could not have been unaware of the extent of doping in athletics and the non-enforcement of applicable anti-doping rules”.

Adidas, which has a long-running deal with scandal-plagued FIFA, has come under fire for refraining to distance itself from FIFA President Sepp Blatter after Swiss authorities opened a criminal investigation into him.

The 11-year deal was signed in 2008 and due to run until 2019. At the time it was agreed, the deal was reported to be worth $33 million (£23 million). However the amount is believed to be much higher, in terms of cash and product, as about £5.6m ($8mn) per year.

Adidas is reportedly prepared to argue that the IAAF has breached its contract if the organization takes court action to challenge the sportswear manufacturer’s decision.