Adidas has unveiled a deal worth about £100 million (€143m-$200m) to become one of the lead sponsors of the London Olympics in 2012. Under the agreement, Adidas will provide three-striped outfits for about 70,000 officials and volunteers, it will be the exclusive supplier of branded and unbranded sports merchandise at all the Games' venues, with the right to organize its own marketing activities around the event.

Adidas is the third lead sponsor to have been recruited by Sebastian Coe, chairman of the London Organising Committee of the Olympic and Paralympic Games (LOCOG), who was one of Nike’s most prominent endorsees as a runner in the ‘eighties. Joining Lloyds TSB Group and Electricité de France, Adidas has been picked as the official sportswear partner of the Games.

Adidas has already struck a similar deal for the 2008 Beijing Olympics, and hopes that it will help the brand to snatch the market leadership from Nike in the country. On the back of their deal with LOCOG, Adidas executives now have the same expectations for the United Kingdom. For the time being, as detailed in our report on Nike’s quarterly performance, the American brand is gaining share in both markets.

Some British newspapers reported that LOCOG would receive about £70 million (€100m-$140m) from Adidas in cash, equipment and projected royalties on London 2012 merchandise, while the remaining £30 million (€43m-$60m) would go to unspecified grassroots investments.

Adidas had prepared a large-scale event for the announcement, supported by former athletes like Daley Thompson, double decathlon champion, and by several sports exhibitions around London. Unfortunately the news was somewhat overshadowed by the shock departure the same day of the coach of the Chelsea football club, José Mourinho, who ironically has a hefty personal deal with Adidas.