AC Milan end two-decade association with adidas

Sport360 staff 17:29 24/10/2017
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  • ​AC Milan have ended their sponsorship deal with adidas after almost two decades, the Italian Serie A club confirmed Tuesday.

    The German sportswear giants had agreed a new 10-year deal worth over 200 million euros ($235 million) in 2013. The partnership began in 1998.

    “AC Milan has mutually agreed with adidas to prematurely terminate their technical sponsorship deal at the end of the season 2017/2018,” the club said in a statement.

    The seven-time European champions have not finished higher than sixth in any of the last four seasons in Serie A but an ambitious close-season recruitment drive saw them splash some €230 million euros ($270 million) on new signings under new Chinese owner Li Yonghong.

    He paid €740 million to buy the club last April from former Italian Prime Minister Silvio Berlusconi.

    The northern Italian side are reported to have reached a new agreement for less money with adidas’ German rivals Puma.

    Berlusconi, meanwhile, claimed that his former club were in financial difficulty.

    “I knew AC Milan have financial problems and I am worried about the silence of Mr Li,” Berlusconi told Telelombardia.

    “Whoever would buy the club next would pay less than the club’s value but will also have to pay debts for several years, influencing the growth of the club, that’s not a nice perspective.”

    Berlusconi spent over 30 years as Milan president, leading the club to great success.

    But despite their recent spending spree they are languishing in the bottom half of Serie A, already nine points adrift of the top four.​

    Meanwhile, Puma reported on Tuesday leaping profits in the third quarter after celebrity tie-ins from partners like Rihanna and Usain Bolt fired sales.

    Net profit reached €62 million ($73 million) between July and September, 57 per cent higher than the same period last year, the Bavaria-based firm reported.

    The result comfortably outperformed predictions from analysts surveyed by financial data firm Factset. Puma’s performance was even stronger over the first nine months, with net profit doubling compared with last year to €134 million.

    The firm with the pouncing cat logo released some third-quarter results early last week, saying surging revenues and profits prompted it to increase its forecast for the full year.

    Puma now expects to make between 235 and 245 million euros in operating profit this year, almost double 2016’s figure.

    Revenues at the firm swelled in the past three months, juiced by Bolt’s final competition appearances at the IAAF world championships in London and Rihanna’s fourth puma collaboration dazzling crowds at New York Fashion Week.

    Puma, a subsidiary of sports and luxury group Kering, also partnered with US singer and actress Selena Gomez in the third quarter.

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