Sporting goods brand adidas will take legal action against the Royal Spanish Football Federation (RFEF) to ensure that it complies with the national team kit supply deal signed between the two parties in 2015.
The RFEF claims the deal, from 2019 to 2026, undervalues the asset and wants a new kit supplier installed before the 2020 European Championship.
According to report in Spain’s El Economista business news service, the RFEF currently receives around €14m ($15.8m) per year from adidas, but believes it could generate €30m under a new contract with another brand.
Read this: Adidas nets extension to long-running Spanish Football Federation partnership
In an official statement issued last week, adidas said there was no break clause in the contact and that the agreement is legally binding.
The statement read:
“In 2015, adidas and the RFEF signed an extension of the current contract, extending its duration from 2019 to 2026.
“It is a binding agreement that does not include an exit clause for any of the parties, Adidas has always acted in good and I would like to continue with the successful support provided to the RFEF and Spanish football.
“Unfortunately, due to the recent actions taken by the RFEF and to preserve the legitimate interests of the brand of the three bands, adidas is forced to take legal action to ensure that the RFEF complies with the contract established until the end of the agreed period, therefore, adidas today begins an arbitration process, as provided in the contract.”
According to El Economista, the federation has already attracted proposals from up to 11 sports brands since it signalled its intention to break the adidas deal in May.