Adidas Set to End Sponsorship Deal

When we saw this headline 'Adidas Set to End Sponsorship Deal' on Monday morning, we had a warm glow, thinking that one of the big sports manufacturers had finally done something big and bold, to help sportsmen and women across the globe. Sadly not. We have spoken about sponsorship, at length in the past and how much the sponsorship actually costs the public rather than being of benefit to them. It is a fact that at least 25% of the cost of most sporting products is directly related to the amount of sponsorship spent by manufacturers. What this headline states though is that Adidas is reported to be ending their 11 year deal with the IAAF, 4 years early. This is due to the ongoing doping scandal that is sweeping the sport. The BBC report this action will likely to cost the IAAF around £21m. It is a big statement and comes only 8 months before the start of the 2016 Olympics. I am sure there will be many suitors that would like to fill the void left by Adidas although maybe not as soon as the IAAF would like. I would like to think that Adidas may consider using the money saved from this sponsorship deal to fund a reduction in price across their range. Although the amount they spend on sponsorship per year £21m is unlikely to make much difference. One league deal we know of claims to be worth £1,500,000 per year. This isn't entirely real though as the value is worked out on full rrp of their league ball. But, because the rrp on this ball is inflated (no pun intended) the consumer is paying around £30 more than they should be to cover the cost of the sponsorship. This is around 25% of the cost of the ball. There are companies, Lusum for one, that do supply balls without the cost of sponsorship added to the cost of the ball. This is an effective way of getting quality balls but at a fraction of the cost as Lusum make the balls better whilst keeping them at an affordable price. Lusum do not sponsor players, leagues or clubs so you know the cost of the ball is not inflated to cover sponsorship costs.