UPDATED - Adidas Seeks to Cut Ties with IAAF

(ATR) Adidas is reportedly ending IAAF sponsorship four years early in wake of Russian doping scandal... Dentsu backs IAAF

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(ATR) Adidas is reportedly ending its IAAF sponsorship four years early in the wake of the Russian doping scandal.

The BBC reported that the German sportswear company, the IAAF’s leading sponsor, last week told the federation it was terminating the 11-year agreement – worth an estimated $33 million – that was due to expire in 2019.The IAAF and its commercial partner Dentsu stand to lose around $30 million in revenue, including cash and other services, from Adidas’ severing its ties.

Neither the IAAF or Adidas confirmed the split, with negotiations reported to be taking place.

"The IAAF is in close contact with all its sponsors and partners as we embark on our reform process," a statement from athletics’ governing body said.

Adidas, one of the IAAF’s seven top partners, also commented: "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."

Dentsu issued a statement through executive officer Kiyoshi Nakamura. "We have full confidence in the new leadership of the IAAF and the reform process being led by current IAAF president Sebastian Coe," he said.

Nakamura added thatthe IAAF World Athletics Series "remains an important property" within Dentsu's global sports business portfolio. He noted that Coe visited Tokyo for a first meeting with Dentsu and several of the official IAAF partners at thebeginning of December "which was extremely well received".

Sponsorship experts, including Patrick Nally and Michael Payne, pioneers in sports and Olympic marketing, reacted on Twitter to the news that Adidas was axing its sponsorship.

"IAAF does not give the commercial return that Adidas gets from FIFA, so withdrawing from athletics an easier decision," said Nally.

"From a public relations perspective the Adidas decision to withdraw from IAAF is an understandable one. The historical significance massive," he added.

Payne suggested Adidas’ break with the IAAF "could really hurt".

"Coe going to have his time cut out to save, or would Nike step in?!," he said on Twitter, a reference to the IAAF president cutting long-standing ties with Nike two months ago amid accusations of conflict of interest.

"Should @adidas not be working with @sebcoe & @iaaforg to drive reform instead of running?," he questioned.

Earlier this month, the WADA Independent Commission led by Richard Pound said corruption was "embedded" at the IAAF; in his first report in November, he revealed state-sponsored doping in Russia. This triggered Russia's suspension from international competition.

The IAAF and WADA are currently working with Russia’s NOC and athletics federation to revamp the country's tarnished anti-doping system. If Russia does not achieve compliance with athletics’ and WADA’s rules, its track-and-field athletes will not compete at the Rio Olympics.

Adidas’ dropping athletics amid the corruption storm facing the IAAF is in stark contrast to its attitude to the FIFA crisis.

With a FIFA sponsorship signed in 2013 and running until 2030, Adidas last year initially refused to criticize or pile pressure on football’s scandal-scarred governing body or Sepp Blatter. Some other sponsors including VISA, Budweiser and Coca-Cola slammed FIFA.

It was only last month that Adidas demanded meaningful reforms while hinting that it would likely stay with the federation whatever the outcome of the vote on the reforms package at the Feb. 26 elective congress.

Reported by Mark Bisson

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