Chelsea signed a deal with adidas

The Premier League club agreed an eight-year technical sponsorship deal with the German sports goods manufacturer. The deal, which will income the club £12m per year once the partnership begins on 1 July 2006, has been reached after the club paid a £24.5m indemnity to terminate its current deal with UK-based Umbro. Adidas, who also have agreements with Real Madrid and Ajax, will become the club’s official kit and product supplier as well as a club sponsor. However, the club will retain the retail and non-team licensing rights, believing it can make more money if it is in direct receipt of replica kit sales. Umbro reported last year £8.2m sales of club related articles, and that figure is likely to increase if the club will win titles and trophies over the next seasons, making the penalty payment to Umbro look like money well spent. “This partnership is great news for Chelsea and we look forward to working with adidas, whose vision we share,” the club’s chief executive Peter Kenyon commented to media.