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Home  » Sports » Adidas extends FIFA deal

Adidas extends FIFA deal

By Isabel Strassheim
January 19, 2005 19:08 IST
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Adidas-Salomon extended its sponsorship agreement with FIFA for the World Cup soccer tournaments in 2010 and 2014 in a deal worth $351 million, FIFA boss Sepp Blatter said on Wednesday.

Adidas will get priority access to TV and stadium advertising at the two events, the world's second-largest sports goods firm told a news conference at the headquarters of the world soccer organisation in Zurich.

Adidas will as at previous events supply the official match ball and equipment for FIFA officials with licensing for endorsed retail equipment included in the deal.

The agreement comes as no surprise as Adidas has been FIFA's partner since 1970 and the firm has been keen to expand its soccer activities to fend off increasing competition from sector giant Nike and German rival Puma.

Sponsoring deals are important for sports goods firms to boost brand awareness, though analysts have expressed concern at the cost of marketing at big events.

Adidas saw a double-digit rise in sales of goods from endorsement deals in Asia after the Bavarian firm sponsored the 2002 World Cup in Japan and South Korea, where Brazil beat Germany in the final.

The 2010 World Cup will be held in South Africa, while the venue of the 2014 tournament has still to be decided.

Adidas Chief Executive Herbert Hainer also said the firm has reached its 2004 sales and profit targets. It has forecast a 20 percent rise in net profit with currency-adjusted sales growing 5 percent.

He also said Adidas is confident of meeting its 2005 targets with net profit seen rising by 10-15 percent on sales growth of less than 10 percent when adjusted for currency effects.

Adidas shares pared losses on the news, but still traded down 0.21 percent at 116.45 euros.

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Isabel Strassheim
Source: REUTERS
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