The International Association of Athletics Federations (IAAF) is on the verge of losing their biggest sponsor Adidas, after the German multinational corporation has decided to terminate its sponsorship deal four years ahead of time.
It is understood Adidas have revealed to the IAAF in November that a possible move to terminate its relationship was to come following the Russia doping scandal. More scandals have been unveiled since then and the sports kit manufacturer thinks it is wise to part ways with the world athletics governing body.
GarberSports has gathered that the termination will result in the loss of tens of millions of dollars for the IAAF, which will be a major blow to president Lord Coe.
The IAAF, however, issued a statement on Monday revealing it is “in close contact with all its sponsors and partners as we embark on our reform process”. Other official partners of the IAAF are Canon, Toyota, Seiko, TDK, TBS and Mondo.
The Adidas deal, reported to be worth $33m (£23m), was signed in 2008 and due to run until 2019. But, according to the BBC, the figure is much higher in terms of cash and product, at around $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).