Chairman Robert Louis-Dreyfus told Reuters that the company would delay a decision on whether to sign up as an official sponsor of the World Cup after 2002 until it had further details from soccer's organising body FIFA about its future plans.
Louis-Dreyfus said that he expected Adidas and Nike to become the twin giants of their sector, with other companies relegated to second-division status.
"The market is becoming a bit like the market for drinks with Coca-Cola and Pepsi and then some niche players. Only two really play in the big boys' yard. In my opinion, with the costs of sponsorship, there is more chance that there will just be two," Louis-Dreyfus said.
He ruled out any new acquisitions after the recent purchase of Salomon ski manufacturers.
Adidas spent 600 million francs ($98.54 million) on the current World Cup being played in France to pay for the right to be one of the 12 official sponsors and for publicity.
Louis-Dreyfus said the competition had provided the group with a good platform for advertising its brands but that he was unhappy at the way official sponsors were treated.
Adidas has renewed its contract as supplier of official equipment to FIFA until 2006, but it is awaiting more details from FIFA and its marketing partner ISL Worldwide before committing itself as official sponsor of the World Cup from 2002 onwards.
"We need to look calmly at the new plan by FIFA and ISL for 2002 and 2006. There is no doubt that there was some disorder in this 1998 World Cup," Louis-Dreyfus said, adding that while Adidas had believed they were the "top sponsors" they had discovered afterwards that the French Organising Committee (CFO) had its own "sub-sponsors".
"I have no problem with the CFO. In future, we will have to find a system in which the top sponsors are really top sponsors and maybe have a better distribution of revenues with the organising committees. Maybe we have to give them all the income from tickets, or certain discounts but you cannot mix everything up."
He said that international commercial rights should be reserved for official sponsors.
The CFO signed contracts with 33 companies as well as the 12 official sponsors. ($1=6.089 French Franc).
Reuters
Sports equipment group Adidas said it had benefited from the 1998 soccer World Cup but added that in future only official sponsors should have international commercial rights.
