Adidas’ reported $5.9-billion offer to sponsor Jamaica’s athletics programme is the latest in a decade-long courtship of the Jamaica Athletics Administrative Association (JAAA) by the German sports goods company, which has reignited discussions about the JAAA’s sponsorship decisions, while raising concerns about the nature of the brand’s approach.

News of the mega-offer to the cash-strapped JAAA follows a similar proposal in 2014, which was rebuffed by the then Warren Blake-led administration. On Thursday, former general secretary and current JAAA boss Garth Gayle acknowledged the offer but underlined that he is not at liberty to discuss the matter due to contractural constricts.

“It cannot be discussed at the level of the JAAA because, simply, we are in contract and we have to abide by all the principles that govern that contract,” Gayle told the Jamaica Observer.

According to documents obtained by the Observer, Adidas has crafted an eight-year offer
— effective January 2025, valuing US$22.2 million ($3.4 billion) in cash over the period and an additional US$16.6 million ($3.4 billion) in products for a total investment of US$38.8 million ($5.9 billion) or US$4.85 million ($749 million) a year.

This dwarfs the value of the JAAA’s current deal with Puma, which is believed to fall in the region of US$1 million ($154 million) a year and is set to expire in December.

It is believed that there was an informal discussion between Gayle and members of the Adidas top brass during the World Athletics Championships in Budapest, Hungary in 2023, however, the JAAA is not legally permitted to engage in negotiations with competing brands until six months before the expiration of their deal with Puma, which also has a ‘Right of First Refusal’ clause in its deal.

This clause, which is commonplace in major international sporting contracts, compels the JAAA to inform Puma of any competing offer and also means that if Puma matches said offer, the JAAA would be obligated to accept.

Interestingly, Adidas Chief Executive Officer Bjorn Gulden, who joined the ‘Three Stripes’ brand in November 2022, was still in charge at Puma when Adidas presented an offer upwards of US$2 million in cash per year, plus US$750,000 in gear to the JAAA in 2014 ahead of the 2016 expiration of the previous Puma-JAAA contract. The JAAA had also received a US$3-million a year offer from Chinese brand 361 Degrees.

Gulden, at that point, had written to Adidas demanding that it cease and desist from engaging with the JAAA outside of the legally allowed period, which is six months prior to the expiration of the contract.

In the end, the JAAA, which was at that point receiving close to US$750,000 per year from Puma, decided to extend the contract with the brand to December 2024.

With Adidas again showing interest in the island’s track and field product, questions are again being raised about whether or not the JAAA should continue with longtime partners Puma, or follow the dollars with Adidas.

In addition to a major increase in the cash value on the current contract, the Adidas offer also includes licensing and digital rights, as well as royalties at 10 per cent of net sales on all JAAA-branded products on a yearly basis.

The proposal also includes bonuses for medals won at the Olympic Games (US$25,000 for each gold medal; US$15,000 for silver; and US$10,000 for bronze); World Championships (US$15,000; US$10,000 and US$8,000); World Indoor Championships (US$10,000; US$8,000; US$7,000); World Junior Championships (US$7,500; US$5,000; US$2,000); and the World Relay Championships (US$7,500; US$5,000; US$2,000).

The JAAA and Adidas have worked together in the past with the brand sponsoring the administration up to the early 1990s before ending ties with the organisation.

Adidas is reportedly paying American sprinting star Noah Lyles approximately US$2 million a year in what has been described as the best individual contract in the sport since the retirement of Usain Bolt, who was sponsored by Puma.