Chelsea and Adidas Terminate Partnership Agreement: Latest Details, Reaction

Chelsea and Adidas will end their partnership next summer, six years ahead of schedule. The kit manufacturer confirmed the end of a business relationship that has run since 2006 via a statement on its official site.

The agreement will officially come to an end on June 30, 2017. As part of the mutual decision to terminate the contract early, Chelsea will pay Adidas AG a compensatory fee in 2017.

Adidas AG's statement outlines the motivating factors behind the decision. It also makes clear how the Stamford Bridge club will be free to pursue its sportswear needs with a rival brand:

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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.

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The manufacturer also referenced the highs of its relationship with Chelsea, specifically the west London club's two Premier League titles since 2006, along with winning the UEFA Champions League in 2012.

Meanwhile, Chelsea issued a statement expressing gratitude, per Squawka News:

Sky Sports News reporter Kaveh Solhekol confirmed Adidas AG's plans to streamline its business and representation model:

Sara Germano of the Wall Street Journal offered some thoughts on why the end has come so early for this deal:

Being free to pursue a new agreement will let Chelsea explore a more lucrative kit deal. Premier League rivals Arsenal and Manchester United both benefited from new agreements in recent seasons.

The Gunners secured an agreement reportedly worth £30 million annually with Puma back in 2013. Meanwhile, United separated from Nike and joined Adidas in a 10-year, £750 million deal in 2014.

Chelsea's now former kit supplier brokered an even bigger deal with Real Madrid earlier this year, per Marca (via Ed Malyon of the Daily Mirror).

Blues owner Roman Abramovich will surely want his club's annual coffers to be swelled significantly by any new deal.