Adidas ends Chelsea sponsorship 6 years early

Sportswear giant Adidas had ended its sponsorship of English football club Chelsea six years early.

The German company has been Chelsea’s principal sponsor since 2006, however according to the BBC Adidas reached a mutual agreement to end the deal on 30 June 2017 instead of 2023.

The club will have to pay Adidas tens of millions of euros in compensation, but is free to sign a new sponsor. The team will no longer wear Adidas kit once the agreement has been terminated.

The payment means Adidas profits are expected to rise 25 percent this year rather than the 15-18 percent originally forecast.

Adidas has said it is developing a new marketing strategy based around fewer teams, top individual players, digital media and grassroots campaigns.

The company said in a statement: "Adidas... wishes to expressly thank Chelsea Football Club for their always professional and successful collaboration, which has included, among other successes, the time of their UEFA Champions League title in 2012 as well as two Premier League titles."

Adidas sponsorship deal biggest in history

Its deal in 2013 with Chelsea, reported to have been worth 300 million pounds was the biggest shirt deal in Premier League history.

However, Adidas broke its own record the following year, when it agreed to pay 750 million pounds to replace its US rival Nike as sponsor of Manchester United.

It has also taken over from Nike at Italian champions Juventus, while extending its contract with Germany's number one team Bayern Munich.

The identity of Chelsea's next kit manufacturer has not been revealed.

Image:Adidas Chelsea kit