Adidas Sever ties from Toxic IAAF

(Needed new thread....last one wrong title)
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http://www.bbc.co.uk/sport/athletics/35385415

Adidas, the IAAF's biggest sponsor, has told athletics' world governing body it is to terminate their sponsorship deal four years early.

The sportswear giant informed the IAAF of its decision - understood to be a direct result of the doping scandal sweeping the sport - last week.

Sources have told the BBC the move will result in tens of millions of dollars in lost income to the IAAF.

It is sure to come as a major blow for embattled president Lord Coe.

Neither Adidas nor the IAAF - the International Association of Athletics Federations - confirmed the split but both issued short statements.

They both referenced the "reform process" currently under way as the IAAF attempts to come to terms with a number of damaging revelations.

They also claimed they were "in close contact" with each other, with the IAAF insisting it was in close contact with "all its sponsors and partners".

Adidas, which designs and manufactures sports shoes, clothing and accessories, has also expressed its displeasure at the corruption scandal that continues to engulf Fifa.

However, the German firm, which signed a £750m kit sponsorship deal with British football giants Manchester United in 2014, remains world football's governing body's oldest commercial partner.

How much will the IAAF lose?

The 11-year sponsorship deal with Adidas was due to run until 2019 and was reportedly worth $33m (£23m).

However, sources have told the BBC that the figure is much higher - as much, in terms of cash and product, as about $8m (£5.6m) per year.

This means the projected lost revenue for the IAAF and its agency Dentsu over the next four years will be more than $30m (£21m).

Adidas is just one of the IAAF's official partners, along with Canon, Toyota, Seiko, TDK, TBS and Mondo.

According to an official press release that accompanied the deal announcement in 2008, the partnership between the IAAF and Adidas incorporated "every aspect of athletics, from product creation, to grassroots development and retail distribution".

Under the agreement, Adidas also became the official sponsor of the 2009 World Championships in Berlin.

Why is Adidas bowing out?

The BBC understands that Adidas informed the IAAF in November it was considering ending their relationship early after a report detailed claims of "state sponsored doping" within Russia.