Adidas facing huge losses
ADIDAS are facing losses of nearly half a billion pounds which could threaten their status as one of football’s premier brands.
The German company are set to post their first annual loss in 30 years due to a failed collaboration with Kanye West, who made a series of antisemitic remarks in interviews and on social media last year. Adidas, who have been left with £1.1billion of unsold stock, revealed yesterday that they will reduce dividends to shareholders as they ponder how to deal with the ‘Yeezy’ merchandise. If they choose to write off the products it could lead to the company’s operating profit being lowered by £446million.
Lionel Messi, Mohamed Salah and Paul Pogba are among the high-profile players who have boot deals with adidas, and they provide Manchester United’s kit in a contract worth £750m. However, Puma have emerged as a major rival to adidas and Nike in recent years. They confirmed Jack Grealish as their latest acquisition earlier this week and also sponsor Neymar. Puma’s kit deal with Manchester City is worth £650m.