Break with Blues hits Umbro

SHARES in the sportswear firm, Umbro, fell sharply after Chelsea yesterday ended a sponsorship deal with the company five years earlier than planned.

Umbro said the ending of the Chelsea contract in June 2006 would cut its pre-tax profit for this year by up to £2m. Neither side gave a reason why the lucrative deal to supply playing and training kit and sell and distribute replica products ended.

Sales of Chelsea-branded Umbro products came to £8.2m - or 6.1% of the company’s British turnover - in 2004. However, the company, which listed on the London Stock Exchange last May, said Chelsea would pay £24.5m as compensation next June.