Adidas will receive $57 million from Chelsea for the termination of the sponsorship contract

The Adidas company will receive €50 million ($57 million) from the London football club Chelsea, owned by Russian billionaire Roman Abramovich, for the termination of the sponsorship contract for six years before its expiry date, according to a press release from Adidas.

The decision was reached jointly by the parties, the report says. The partnership will end on 30 June of the following year.

Adidas sponsored Chelsea in 2006. Under the contract, the company provided the club sportswear. In 2013 Adidas and Chelsea FC have renewed the contract for a period of 10 years, i.e. until 2023, according to Bloomberg.

Premature termination of the agreement “will allow Chelsea to sign a new contract for the supply of equipment with the competitor Adidas,” reads the press release. In turn, the German concern and this will allow “to continue the implementation of its business plan, which involves reducing the partnership with sports teams.

The termination of the transaction with Chelsea happened shortly before the arrival of the Adidas Kasper Rorsted. It needs to be replaced by Heiner gerbera on a post of the General Director of the company.

Net profit of German companies for the year, according to Bloomberg, will increase after the payment of “Chelsea” to approximately €900 million (over $1 billion). Previously forecasted a profit of €830 million (approximately $948 million) to €850 million ($971 million).

A week ago, it was reported that Adidas decided to restructure the business focused on servicing the Golf lovers. The company intends to strengthen its position as a manufacturer of brand shoes and apparel for golfers, however, plans to exit the segment for the manufacture of Golf clubs, balls and other equipment and accessories.

Chelsea is owned by Russian billionaire Roman Abramovich, whose fortune Forbes estimates at $7.6 billion (13-th place in the rating “200 richest businessmen of Russia”). In 2003 he bought the club for $233 million In the published on Wednesday the rating of most valuable football teams according to Forbes magazine “Chelsea” ranked seventh. Edition valued the club at $1.66 bn.