Dive Brief:
- The BBC reported Sunday that Adidas will end its sponsorship of the International Association of Athletics Federations (IAAF), the world’s governing body for track and field sports, four years early.
- The decision is reportedly due to a doping scandal that broke in November, when former IAAF president Lamine Diack was arrested for allegedly accepting $1.2 million to cover up positive doping tests of Russian athletes in 2011.
- The sponsorship’s official value was $33 million over 11 years, but may be worth as much as $8 million per year.
Dive Insight:
Adidas is reportedly taking a stand against doping in sports by ending its relationship with the world’s governing body for track and field, the International Association of Athletics Federations (IAAF), ahead of the 2016 Olympic games in Rio de Janeiro.
In November 2015, the World Anti-Doping Agency (WADA) issued a report charging the IAAF with a systemic failure to prevent state-sponsored doping in the track and field sports.
But some speculate that the move is more about brand repositioning. Adidas has been losing sponsorships and market share to rivals Nike and Under Armour, but hasn’t yet taken measures to distance itself from the ongoing scandal facing FIFA, the world’s governing body for soccer. Adidas inked a £750 million ($1.1 billion) kit sponsorship deal with Manchester United in 2014.