FIFA World Cup and Adidas extended their partnership to 2030, the two groups announced on Thursday. The partnership, which has lasted for over 40 years, is one of the longest in sports sponsorships.
“Adidas is an integral part of the FIFA World Cup story, quite literally featuring at the heart of the action at every tournament since the 1970 FIFA World Cup,” FIFA marketing director, Thierry Weil said.
FIFA did not disclose the financial details of the sponsorship but the World Cup event is responsible for over 90 percent of its income, totaling over $1.1 billion last year with about $350 million from sponsorships.
Adidas is FIFA’s sixth largest sponsor, and FIFA’s top sponsorships are estimated to be around $100 million per event.
The contract was last renewed in 2005. It was extended to cover the 2010 World Cup in South Africa and the one coming up in 2014 in Brazil, and is estimated to be $350 million.
German sportswear maker Adidas AG is second only to US-based Nike Inc. and the two companies have placed near-equal amounts into soccer sponsorship worth around $6.7 billion annually.
Adidas’ sales have been falling behind Nike’s in recent quarters but it’s betting on the 2014 World Cup to drive up those numbers. Adidas expects record sales of $2.69 billion in 2014.
“This unique partnership and our extensive presence at all FIFA World Cups will help us to expand Adidas’ position as the leading football brand worldwide,” Adidas Group CEO, Herbert Hainer said.
The longest sports sponsorship to date is between Ford Motor Company and the Geelong Football Club, which began unofficially in 1925. Ford signed on as an official corporate sponsor in 1951 and in 2011 extended the sponsorship to 2016.
Adidas Extends FIFA Sponsorship to 2030
11/21/2013
Updated: 11/21/2013
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