• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia

Trendingnow

1

Mark Cuban says he has the solution to growing income inequality, and it's to reward every employee—from CEO to janitor—with company stock

2

‘I want to die broke’: Billionaire philanthropist Denny Sanford dies after giving away $4 billion

3

'Dr. Doom' Nouriel Roubini says we're headed for universal basic income or 'some form of socialism' as AI revolutionizes work—He calls that optimistic

1

Mark Cuban says he has the solution to growing income inequality, and it's to reward every employee—from CEO to janitor—with company stock

2

‘I want to die broke’: Billionaire philanthropist Denny Sanford dies after giving away $4 billion

3

'Dr. Doom' Nouriel Roubini says we're headed for universal basic income or 'some form of socialism' as AI revolutionizes work—He calls that optimistic
Adidas

Digital Marketing Helps Adidas Cut Ties to Sports Bodies

By
Reuters
Reuters
Down Arrow Button Icon
By
Reuters
Reuters
Down Arrow Button Icon
January 27, 2016, 12:55 PM ET
Adidas Lowers It's Yearly Outlook Based On Turmoil In Russia
NEW YORK, NY - JULY 31: An Adidas store is viewed in Manhattan on July 31, 2014 in New York City. The German sporting goods manufacture surprised investors with a profit warning on Thursday that lowered its shares by as much as 16%. Blaming currency issues, lower consumer spending in Russia, poor golf-equipment sales and other issues, Adidas said second-quarter net profit fell 16% from the year-earlier. (Photo by Spencer Platt/Getty Images)Photograph by Spencer Platt — Getty Images
Add Fortune on Google for similar content.

If Adidas ends its funding of the athletics governing body, it would not just be a reaction to doping but also a sign of a shift towards spending on individual sports stars and teams who can promote brands directly to fans via social media.

The BBC said the German sportswear firm, whose 11-year deal made it the biggest sponsor of the International Association of Athletics Federations (IAAF), had decided against continuing with the contract as a direct result of doping and corruption allegations that emerged in December.

Neither Adidas nor the IAAF would confirm the report, but such a move would fit in with a trend towards sponsors like Adidas feeling less bound to sports governing bodies as the ultimate gatekeepers to fans.

The rise of social media has meant marketing budgets have moved away from television and towards online advertising, with top sports stars now able to directly promote their chosen brands to millions of fans who follow their feeds.

“The advent of digital means there is less need for the event platforms. Fans don’t interact with the governing bodies. They engage with the sport, the teams and the individuals,” said Rupert Pratt, co-founder of sports agency Generate.

Adidas is locked in a global battle with Nike (NKE) for brand supremacy. But its pockets are not as deep as its U.S. arch rival – despite a recent hike its marketing budget is still about 50 percent less – increasing the need for it to be more discriminating rather than fight for every deal.

Under former boss Horst Dassler, Adidas practically invented the idea of long-term deals with sporting federations like FIFA and the Olympics to get its logo onto the field. It is now focusing more on contracts with the highest-profile players, clubs and national teams and less on federations.

This trend was shown last year when Adidas decided against renewing its contract with the U.S. National Basketball Association (NBA) so it could invest more in players like James Harden of the Houston Rockets, who struck a 13-year deal worth a reported $200 million.

Although Adidas has been the official kit provider to the last three Summer Olympics, it decided against sponsoring the 2016 Rio Games, saying it had already done a lot to boost the brand in Brazil at the 2014 World Cup and will still use the Games as a platform to launch new products.

In the case of the Rio Games, Nike swooped in to fill the role, as it will with the NBA contract from 2017.

As part of its targeted strategy, Adidas is fiercely defending its leading position in soccer, the most popular sport in its European home territory, and focusing on the biggest teams.

It agreed to pay 750 million pounds ($1.1 billion) to replace Nike as sponsor of English soccer side Manchester United for a decade, a record kit deal for the sport. It has also taken over from its U.S. rival at Italian champions Juventus, while extending its contract with Germany’s No.1 team Bayern Munich.

An Adidas spokeswoman said deals with sports federations were assessed on a case-by-case basis depending on how likely they were to drive sales, noting it had decided to take over the partnership with North America’s National Hockey League from Reebok.

And the company has no intention of ditching soccer governing body FIFA given the appeal of the World Cup, despite drawing criticism for being less vocal than other sponsors in criticizing the organization over its corruption scandal.

But it does plans to lower the share of its marketing budget that goes on sports deals to below 45 percent in 2020 from about half now, as it increases spending on pushing the brand directly on social media, in stores and at grassroots events.

The ever-increasing emphasis on sports stars, heightened by social media, is set to further leach cash from athletics.

Even before the doping scandal, it was struggling to compete for funding with other sports; apart from the Olympics, it lacks regular high-profile events that can turn athletes into household names beyond their home countries.

“Athletics isn’t a merchandising machine like football is,” said Pratt.

Although still far off, the Rio Olympics has a tiny fraction of the followers on social media of the World Cup, the Ultimate Fighting Championship (UFC) and the Tour de France, according to sports marketing research group Repucom.

Jamaican sprinter Usain Bolt, sponsored by Puma, is the only really global track and field star of the moment and is set to retire in 2017. After Bolt, the athletes that attract the most funds are usually long-distance runners like Kenya’s Dennis Kimetto and Mary Keitany, both sponsored by Adidas.

They benefit from the exposure of a busy marathon calendar, but the cash on offer to them still pales into insignificance when compared with other sports like soccer and basketball.

Illustrating the gulf, FIFA demands an estimated $100 million from each top sponsor for a four-year World Cup cycle, while the IAAF deal Adidas might jettison is reported to be worth just $8 million a year.

“In Adidas terms, it is a rounding error in the marketing budget,” said Andrew Woodward, a sports marketing consultant who was director of public relations for Visa until 2011.

Some experts suggest Nike might want to replace Adidas at the IAAF for a bargain price, although it might think twice given the doping scandal and controversy over its long ties—terminated in November—with IAAF president Sebastian Coe.

That could be an opportunity for smaller sportswear brands like Japan’s Asics or Boston-based New Balance. “It does open the door to second or third-tier brands to get a leg in,” said Woodward.

About the Author
By Reuters
See full bioRight Arrow Button Icon
Add Fortune on Google for similar content.

Latest in

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Fortune Secondary Logo
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • World's Most Admired Companies
  • See All Rankings
  • Lists Calendar
Sections
  • Finance
  • Fortune Crypto
  • Features
  • Leadership
  • Health
  • Commentary
  • Success
  • Retail
  • Mpw
  • Tech
  • Lifestyle
  • CEO Initiative
  • Asia
  • Politics
  • Conferences
  • Europe
  • Newsletters
  • Personal Finance
  • Environment
  • Magazine
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
  • Group Subscriptions
About Us
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • TikTok icon
  • YouTube icon

Latest in

Two students stand next to each other and look at the papers they are holding.
AIEducation
Study finds AI boosted homework scores 18%—then tanked exam results 20%
By Sasha RogelbergJuly 21, 2026
34 minutes ago
Exclusive: Twin sisters built GlossGenius into the latest female-founded unicorn. Now they’re debuting AI for small businesses far beyond beauty
NewslettersMPW Daily
Exclusive: Twin sisters built GlossGenius into the latest female-founded unicorn. Now they’re debuting AI for small businesses far beyond beauty
By Emma HinchliffeJuly 21, 2026
41 minutes ago
math
AIScience
Mathematicians grapple with a ‘very rapid and very unsettling change’ as AI cracks yet another century-old problem
By Eva RoytburgJuly 21, 2026
58 minutes ago
Welder on a navy boat
SuccessCareers
Jamie Dimon says six-figure shipyard jobs are the new ‘American Dream’—but candidates will need to endure hours of extreme heat, cold, and rain
By Preston ForeJuly 21, 2026
2 hours ago
Knicks star Jalen Brunson
SuccessPersonal Finance
Despite a $156 million contract, Knicks star Jalen Brunson still calls his parents for financial advice any time he makes a big purchase
By Emma BurleighJuly 21, 2026
2 hours ago
Current price of gold as of July 21, 2026
Personal Financegold prices
Current price of gold as of July 21, 2026
By Danny BakstJuly 21, 2026
4 hours ago

Most Popular

Mark Cuban says he has the solution to growing income inequality, and it's to reward every employee—from CEO to janitor—with company stock
Success
Mark Cuban says he has the solution to growing income inequality, and it's to reward every employee—from CEO to janitor—with company stock
By Sasha RogelbergJuly 20, 2026
24 hours ago
‘I want to die broke’: Billionaire philanthropist Denny Sanford dies after giving away $4 billion
Success
‘I want to die broke’: Billionaire philanthropist Denny Sanford dies after giving away $4 billion
By Sydney LakeJuly 20, 2026
1 day ago
'Dr. Doom' Nouriel Roubini says we're headed for universal basic income or 'some form of socialism' as AI revolutionizes work—He calls that optimistic
AI
'Dr. Doom' Nouriel Roubini says we're headed for universal basic income or 'some form of socialism' as AI revolutionizes work—He calls that optimistic
By Jason MaJuly 18, 2026
3 days ago
Current price of silver as of Monday, July 20, 2026
Personal Finance
Current price of silver as of Monday, July 20, 2026
By Joseph HostetlerJuly 20, 2026
1 day ago
It’s not just Taco Bell lettuce and possible glass in Pillsbury rolls: Food and drink recall events reached a 6-year year-over-year high
Retail
It’s not just Taco Bell lettuce and possible glass in Pillsbury rolls: Food and drink recall events reached a 6-year year-over-year high
By Sasha RogelbergJuly 20, 2026
1 day ago
The Treasury is walking a tightrope on U.S. debt by relying so much on short-term rates that are at the mercy of a suddenly very hawkish Fed
Economy
The Treasury is walking a tightrope on U.S. debt by relying so much on short-term rates that are at the mercy of a suddenly very hawkish Fed
By Jason MaJuly 20, 2026
1 day ago

© 2026 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.