Last season’s Premier League winner will finish its current contract next summer but will need to pay compensation to the German sportswear company.
Chelsea has ended its kit sponsorship deal with adidas six years early.
Last year’s Premier League champion had a $43 million-a-year contract in place with the German manufacturer until June 2023, but has now mutually agreed to terminate that deal at the end of next season.
As part of the arrangement, Chelsea will pay adidas an undisclosed compensation fee. The sportswear giant has also confirmed that the move is based on the Blues’ decision to sign a new deal with an unnamed competitor.
A statement from adidas read: “Chelsea Football Club and adidas AG announced today that they have mutually agreed to terminate their existing partnership agreement prematurely. The agreement will now end on June 30, 2017 and not, as originally agreed, on June 30, 2023.
“adidas has been sponsor and sportswear supplier for Chelsea Football Club since 2006. This mutual agreement on early termination of the agreement will allow Chelsea Football Club to enter a new equipment agreement with a competitor of adidas AG.
“It will allow adidas AG to continue to implement its sports sponsorship strategy as set out in its strategic business plan ‘Creating the New.’ Under this plan, adidas AG will partner with fewer assets on a team level.
“As compensation for the early termination of the contract, the adidas Group will receive a payment from Chelsea Football Club in 2017 that will already positively impact the Group’s net income this year.”