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Tuesday, 2 January, 2001, 15:53 GMT
Adidas loses kit appeal
adidas french website
Adidas has now changed its marketing strategy
The sportswear giant Adidas-Salomon has been fined 2.4m euros ($2.3m) by a French court after losing an appeal over a contract to kit out French footballers.

The fine was originally imposed in 1996 after the French football federation gave Adidas exclusive supplier rights to provide the kit for all the teams in the French first division.

Although the contract was never applied, competitors Nike and Umbro took legal action, claiming that it was against competition rules.

A spokesman for Adidas said that the firm had not made any similar attempts since then.

He said it had changed its sports sponsorship strategy to focus on the biggest names in a variety of sports, with Anna Kournikova and David Beckham among those currently sporting its sportswear.

Until last year, he told BBC News Online, the company supplied kits to 14 out of 18 teams in the French league.

The figure has fallen to three after the company changed its marketing strategy.

The French national team also wears Adidas, he added.

The ball keeps rolling

In the UK at least, it is down to the individual football clubs to decide who produces their kits and markets their merchandise.

The biggest deal recently has been Manchester United's with Nike, worth about �300m over 13 years.

anna kournikova
Adidas is now targeting big-name stars like Anna Kournikova

The deal dwarfs previous Nike football sponsorship deals, such as its �7m-a-year sponsorship of Brazil's national team, and is thought to be the biggest of its kind ever signed.

It effectively handed control of Manchester Utd's global replica-kit and merchandising business to the sportswear giant.

Before that, the largest UK deal for kit sponsorship was that between Liverpool FC and Reebok, worth �21m over three seasons.

The rights to supply the kit for a Premier or First Division club is a real moneyspinner as the company which lands the contract can also produce the official shirt.

Football clubs tend to change at least one of their home and away strips every season.

With shirts costing about �40 for adult sizes, �30 for children, it is a lucrative business, leading to accusations that fans are being ripped off.

"It looks as if the French football league tried to take things one step further, to say that they had the right to decide who manufactured the kits over the individual clubs," Andy Korman, head of sponsorship at UK sports lawyers, Townleys, told BBC News Online.

In the UK, Adidas currently supplies kits to Newcastle United in the Premiership and Fulham, at the top of Division One.

Adidas-Salomon is the second-largest company in the sporting goods industry - measured in terms of worldwide sales - with revenues at 5.4bn euros ($5.08bn).

Its share of the world market for sporting goods is estimated at about 15%.

Adidas shares were down 1.88% at 64.76 euros in trading on Tuesday.

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See also:

03 Nov 00 | Business
Man Utd in �300m Nike deal
15 Sep 00 | Golf
The art of sponsorship
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