Despite the presence of an eight-year US$40 million ($6.4 billion) offer still on the table from rival sports goods manufacturers Adidas, the Jamaica Observer has been reliably informed that the Jamaica Athletics Administrative Association (JAAA) has already extended its contract with longtime sponsors Puma.

The extension was reportedly finalised before Adidas’ offer and ahead of the period stipulated for contract renegotiations and proposals from competing brands and will undoubtedly raise concerns about competitive fairness.

The JAAA’s deal with Puma was scheduled to expire on December 31, triggering a fresh approach from decade-long suitors Adidas, which made a similarly impressive offer to the JAAA in 2014, which was eventually rejected.

And according to information from several sources close to the situation, that courtship will again end in disappointment for Adidas, as the Garth Gayle-led JAAA has already decided to continue its long relationship with Puma.

It is not clear how much money the JAAA will receive from this new Puma deal, but the old arrangement which was scheduled to expire at the end of this year was believed to be valued in the region of US$1 million ($159.3 million) a year inclusive of cash and equipment.

Gayle was not available for comment Sunday as several calls and texts to him went unanswered. Calls and texts to JAAA Treasurer Ludlow Watts also went unanswered.

In April this year when it was first revealed that Adidas had made an offer to the JAAA with improved terms compared to the expiring Puma deal, Gayle made it clear that he would respect the conditions of their existing arrangement, which among other things, and in line with industry convention, prohibits negotiations with competing brands until six months prior to the expiration of the contract.

Importantly, the Puma deal also included a ‘Right of First Refusal’ clause, which compelled 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.

The latest Adidas offer, which reportedly was submitted a few weeks ago, covers an eight-year period, effective January 1, 2025 to December 31, 2032, pulling in US$5 million ($800 million) in cash, equipment, marketing support and other benefits on a yearly basis.

It proposes an annual retainer of US$2.5 million ($398.4 million), plus an additional US$2 million ($319 million) per year in general product supply.

US$2.4 million ($383 million) was also proposed for a facility creation budget, which would be disbursed in yearly increments of US$300,000 ($48 million) with other perks such as a US$100,000 ($16 million) a year fund for footwear supply to be used in development programmes or for upcoming athletes; US$30,000 ($4.8 million) a year towards programmes identified by the JAAA top brass, travel and expenses valued at US$160,000 ($25.5 million) over the life of the contract and US$400,000 ($64 million) towards marketing and promoting the JAAA.

Adidas also offered the use of its training facilities at Herzogenaurach, Germany for training camps ahead of World Athletics Championships with some costs being covered by the shoe company.

The proposal also includes cash bonuses for athletes for individual and relay medals won at major championships including the Olympic Games and World Championships.

The Annual General Meeting of the JAAA is set for November 23, where it is likely the issue of sponsorship will be addressed.