Adidas Military Audit

1. Executive Intelligence Summary

1.1 Audit Scope and Objectives

This forensic audit was commissioned to rigorously evaluate the operational, logistical, and financial architecture of Adidas AG (“The Company”) to determine the extent of its complicity with the State of Israel’s military apparatus, the occupation of Palestinian territories, and the associated settlement enterprise. The objective of this dossier is not merely to identify superficial associations, but to map the deep-structural ties that bind global capital—specifically the Adidas brand equity—to the mechanisms of occupation.

The analysis distinguishes between three distinct vectors of complicity:

1. Kinetic/Material Complicity: Direct provision of dual-use technology, tactical gear, or logistical support to the Israel Defense Forces (IDF) or Ministry of Defense (IMOD).
2. Structural/Economic Complicity: Integration into the settlement economy through supply chain partnerships, licensing agreements, and retail operations that utilize occupied land or generate tax revenue for the occupation infrastructure.
3. Ideological/Legitimation Complicity: Corporate governance decisions, marketing narratives, and sponsorship activities that serve to normalize, whitewash, or institutionally support the state’s geopolitical narratives, often at the expense of Palestinian human rights.

1.2 Top-Level Verdict

The forensic investigation concludes that Adidas AG maintains a status of High-Level Structural Complicity (Class B) and Active Ideological Complicity (Class C), despite having ostensibly “cleansed” its portfolio of direct state sponsorships in 2018.

While the Company does not currently hold a master contract for the wholesale arming of the IDF (Class A), its operational reliance on Delta Galil Industries—a textile giant deeply embedded in the West Bank settlement industrial complex—constitutes a material financial pipeline that sustains the economic viability of the settlement enterprise. Furthermore, the Company’s 2024 capitulation to Israeli state pressure regarding the “SL72” campaign involving Bella Hadid revealed a corporate governance structure that actively polices and erases Palestinian identity to align with Zionist political sensitivities. This shift marks a regression from the “neutrality” sought during the 2018 divestment from the Israel Football Association.

1.3 Key Forensic Indicators

• The Delta Galil Nexus: Since 2022, Adidas has engaged in a global licensing agreement with Delta Galil Industries for the manufacture of underwear and intimates. Delta Galil operates facilities in the Barkan Industrial Zone (West Bank) and retail branches in illegal settlements (Ma’ale Adumim, Pisgat Ze’ev). Adidas profits directly from this entity via royalties, effectively laundering settlement-generated value into its global revenue stream.¹
• Retail Militarization: The Adidas GSG9 Tactical Boot remains a procured asset within elite IDF units (e.g., Yamam, Sayeret Matkal) and police counter-terror units. While procurement appears decentralized (unit-level purchase rather than IMOD tender), the product is marketed and designed specifically for state violence professionals, and its presence in the Israeli security apparatus is ubiquitous.⁴
• Ideological Capitulation: The removal of Bella Hadid from the July 2024 campaign, following direct criticism from Israeli officials regarding the 1972 Munich Olympics, demonstrated the Company’s willingness to enforce a “hierarchy of victimhood” that prioritizes Israeli historical narratives over Palestinian cultural representation.⁶
• Retail Geography: Through its franchisee Electra Consumer Products, Adidas is expanding its footprint. Electra’s parent company is a primary contractor for IDF infrastructure, linking Adidas retail revenue to a conglomerate building the physical walls of occupation.⁸

2. Operational Methodology and Geopolitical Framework

2.1 The Forensic Logistics Approach

Standard Environmental, Social, and Governance (ESG) audits often rely on self-reported data and superficial policy statements. This audit utilizes a Forensic Logistics Assessment (FLA), which treats corporate operations as a biological system. We trace the “nutrients” (capital, brand equity, legitimacy) and the “waste” (political cover, tax revenue, infrastructure utilization) to understand how the host organism (Adidas) interacts with the parasitic environment (the Occupation).

This approach rejects the notion of “passive neutrality.” In a zone of belligerent occupation, any commercial activity that does not actively distinguish between the Occupying Power and the Occupied Territory becomes, by default, a mechanism of normalization. The audit utilizes open-source intelligence (OSINT), corporate registry filings, supply chain disclosures, and civil society databases (e.g., Who Profits, BDS Movement) to triangulate findings.

2.2 Geopolitical and Legal Baseline

The audit operates under the following legal consensus, which defines the “Red Lines” for complicity:

• UN Security Council Resolution 2334 (2016): Reaffirms that the establishment of settlements in the Palestinian territory occupied since 1967, including East Jerusalem, has no legal validity and constitutes a flagrant violation under international law.
• The International Court of Justice (ICJ) Advisory Opinion (2004 & 2024): Confirms the illegality of the separation wall and the settlement regime.
• UN Guiding Principles on Business and Human Rights (UNGPs): Requires companies to conduct enhanced due diligence in conflict-affected areas to ensure they are not aiding or abetting human rights violations.

Under these frameworks, “Business as Usual” with entities operating in settlements is not merely a political stance; it is a legal liability. A company that pays royalties to, or receives royalties from, a settlement-based entity is effectively a shareholder in the illegal enterprise.

2.3 The Evolution of Adidas in the Levant

Adidas has a long history in the region, transitioning from a wholesale exporter to a direct operational player. The establishment of Adidas Israel Ltd. as a wholly-owned subsidiary marked a shift from “distant supplier” to “local stakeholder.” This incorporation subjects the parent company, Adidas AG (Germany), to direct liability for the actions of its Israeli arm. The recent shift to franchising via Electra Consumer Products indicates a strategy of “asset-light” expansion, which reduces direct capex exposure but increases reputational risk by tying the brand to local conglomerates with deep ties to the security state.

3. Structural Complicity: The Delta Galil Industrial Complex

The most significant finding of this forensic audit is the ongoing, high-value contractual relationship between Adidas and Delta Galil Industries. This is not an incidental supplier relationship; it is a strategic partnership that integrates the Adidas brand into the settlement economy.

3.1 Profile of the Partner: Delta Galil Industries

Delta Galil (TASE: DELG) is one of the world’s largest manufacturers of intimate apparel, headquartered in Tel Aviv. However, its operational footprint extends significantly across the Green Line into the Occupied West Bank.

Forensic Evidence of Settlement Operations:

• Barkan Industrial Zone: Delta Galil maintains a logistical and operational presence in the Barkan Industrial Zone.³ Barkan is a settlement industrial park located deep within the West Bank. These zones are strategic assets for the occupation; they allow Israeli companies to exploit cheap Palestinian labor (often lacking the protections of Israeli labor law or union representation) and low-cost land seized from nearby Palestinian villages (e.g., Haris, Bruqin). By operating here, Delta Galil directly incentivizes the confiscation of Palestinian land for industrial expansion.
• Retail Branches in Settlements: Delta Galil operates retail stores under its various brands (Delta, Fix) in major settlement blocs, including Ma’ale Adumim (Adumim Mall) and Pisgat Ze’ev (East Jerusalem).³ These branches provide services to the settler population, normalizing their presence and contributing to the economic viability of these illegal communities.
• UN Database Inclusion: Due to these activities, Delta Galil is frequently cited by human rights organizations and is a prime candidate for inclusion in the UN Office of the High Commissioner for Human Rights (OHCHR) database of business enterprises involved in certain activities relating to settlements in the Occupied Palestinian Territory.

3.2 The Licensing Agreement (2022-2027)

In 2021, Adidas announced a global licensing agreement with Delta Galil to design, manufacture, and distribute Adidas-branded underwear and women’s intimates.¹ The collection launched in Spring 2022.

Analysis of the Contractual Mechanics:

1. Revenue Flow: Under a licensing model, Delta Galil pays Adidas a royalty fee (percentage of sales). In return, Adidas grants Delta Galil the right to use its intellectual property (IP). This means Adidas AG’s revenue stream is partially derived from the profits of Delta Galil—profits that are commingled with revenue generated from settlement operations. Money is fungible; Adidas cannot ring-fence its royalties to ensure they do not originate from Delta’s settlement activities.
2. Brand Legitimacy: By partnering with Delta Galil, Adidas provides the Israeli firm with international prestige. This “reputational laundering” helps Delta Galil obscure its settlement involvement behind the glossy facade of global sportswear.
3. Manufacturing Obfuscation: While Delta Galil manufactures the specific Adidas products in factories in Egypt, Thailand, and Vietnam ¹⁰, the corporate headquarters and the profit center remain in Israel. The “Made in Egypt” label on an Adidas boxer brief conceals the fact that the corporate entity managing the contract is headquartered in Tel Aviv and paying taxes to the Israeli state, which funds the occupation. The location of the sewing machine does not absolve the location of the bank account.

3.3 The “Greenwashing” Contradiction

Adidas aggressively markets its “Sustainability” and “Human Rights” credentials, with goals to achieve climate neutrality by 2050.¹² However, partnering with a company operating in settlement industrial zones constitutes a direct violation of these ESG commitments.

• Environmental Impact: Settlement industrial zones like Barkan are notorious for lax environmental regulations, often dumping untreated waste into Palestinian wadis (valleys). By partnering with a tenant of these zones, Adidas is complicit in environmental apartheid.
• Supply Chain Transparency: Adidas discloses its Tier 1 suppliers, but the complex nature of the Delta Galil partnership (where Delta is a licensee, not just a supplier) creates a transparency loophole. The Company has failed to publicly address the conflict between its human rights policy and its partner’s presence on stolen land.

Table 1: The Logistics of Complicity – Adidas & Delta Galil

4. Ideological Complicity: The “Bella Hadid” Incident and Historical Erasure

While material support is quantifiable, ideological support—the “soft power” of legitimacy—is equally critical in maintaining the status quo of occupation. In July 2024, Adidas engaged in a high-profile controversy that laid bare its internal political alignment.

4.1 The Campaign: SL72 and the Munich Olympics

Adidas launched a marketing campaign to revive the SL72 retro sneaker, a shoe originally debuted at the 1972 Munich Olympics. The campaign featured Bella Hadid, a supermodel of Palestinian-Dutch heritage.⁶

The Historical Context:

The 1972 Munich Olympics are historically scarred by the “Munich Massacre,” where the Palestinian militant group Black September took Israeli athletes hostage, resulting in the deaths of 11 Israelis and a German police officer. This event is a central trauma in Israeli collective memory and is frequently invoked by the Israeli state to frame Palestinian resistance solely through the lens of terrorism.

4.2 The Israeli State Intervention

Following the campaign launch, the official Israeli government account on X (formerly Twitter), along with various pro-Israel advocacy groups, publicly attacked Adidas. They argued that featuring a Palestinian model (Hadid) in a campaign referencing the 1972 Olympics was “insensitive” and “antisemitic,” solely due to her ethnicity and her vocal advocacy for Palestinian rights.⁶

• The Accusation: The criticism conflated Bella Hadid’s Palestinian identity with the actions of Black September terrorists from 52 years prior. It relied on a racist trope of collective guilt—that any Palestinian presence in the context of 1972 is inherently an endorsement of violence.

4.3 The Corporate Capitulation

Adidas AG’s response was immediate and total. Within days, the Company:

1. Removed Bella Hadid from the campaign.¹³
2. Issued a Public Apology, stating: “We are conscious that connections have been made to tragic historical events – though these are completely unintentional – and we apologise for any upset or distress caused”.⁶
3. Reframed the Narrative: By apologizing, Adidas validated the Israeli government’s premise. They accepted the logic that a Palestinian woman born in 1996 is precluded from representing a 1972 product because of the actions of a distinct group of Palestinians in that year.

4.4 Forensic Analysis of Ideological Complicity

This incident represents a Class C (Ideological) Complicity of the highest order.

• Erasure of Identity: Adidas effectively declared that Palestinian identity is “brand toxic” when juxtaposed with Israeli historical trauma. This is a form of corporate censorship that enforces the occupier’s narrative.
• Double Standards: Adidas has previously weathered controversies with other ambassadors (e.g., Kanye West) for extended periods before acting. In the case of Hadid, who has never uttered hate speech but merely advocated for Palestinian liberation (“From the River to the Sea”), the termination was instantaneous upon Israeli state pressure.¹⁴
• Political Obedience: The speed of the capitulation suggests that Adidas AG’s crisis management protocols are heavily influenced by fear of the “antisemitism” label weaponized by the Israeli Ministry of Strategic Affairs. By complying, Adidas allowed itself to be used as a tool of Israeli public diplomacy (Hasbara), punishing a prominent Palestinian voice to appease the Israeli government.

5. Historical Forensic Audit: Sponsorships and “Whitewashing” (2010-2018)

To understand the current posture, one must audit the Company’s past entanglements. Adidas has a history of meaningful complicity followed by reactive divestment, proving that pressure campaigns (BDS) are the primary driver of corporate policy change in this sector.

5.1 The Israel Football Association (IFA) Sponsorship

For years, Adidas was the exclusive sponsor of the Israel Football Association (IFA).¹⁶

• The Violation: The IFA admits six football clubs located in illegal West Bank settlements (e.g., Ma’ale Adumim, Ariel, Givat Ze’ev) into its official leagues. These clubs play their home games on seized Palestinian land. By sponsoring the IFA, Adidas provided the kits, balls, and branding that normalized these settlement teams as “ordinary” Israeli clubs. This effectively erased the Green Line in the realm of international sports.
• The Campaign: A global coalition, led by Palestinian sports clubs and the BDS movement, targeted Adidas. They argued that under FIFA statutes, a member association cannot operate on the territory of another member without permission—a rule Israel violates by operating in the West Bank (Palestine).¹⁸
• The Divestment (2018): In July 2018, Adidas announced it would not renew the IFA sponsorship.¹⁶ While the Company claimed the decision was commercially driven and “not politically motivated,” the timing—following the delivery of 16,000 petition signatures to Amsterdam HQ—indicates otherwise.
• Current Status: CLEANSED. The IFA contract passed to Puma (who subsequently faced massive boycotts and dropped it in 2023/2024) and then to Erreà (who withdrew almost immediately in 2025 due to pressure).²⁰ Adidas successfully exited this specific liability, but the stain of years of support remains.

5.2 The Jerusalem Marathon Sponsorship (2011-2012)

Adidas served as the main sponsor for the Jerusalem Marathon.²²

• The Route: The marathon route is politically designed to assert Israeli sovereignty over Occupied East Jerusalem. It winds through the Old City and settlement neighborhoods like French Hill and Pisgat Ze’ev.
• The Implication: Sponsoring this event is a direct endorsement of the annexation of East Jerusalem. It presents the occupied city as the “united capital” of Israel, a violation of international law.
• The Fallout: In 2012, sports ministers from the Arab League threatened a total boycott of Adidas in the Arab world if the sponsorship continued. Saudi Prince Nawaf bin Faisal explicitly linked the boycott to the “Judaization” of Jerusalem.²³
• The Withdrawal: Adidas pulled its sponsorship, again citing commercial reasons, but clearly bowing to the threat of losing the lucrative Gulf market.¹⁹
• Current Status: CLEANSED. However, Adidas continues to sponsor the Tel Aviv Marathon, which, while less legally contentious (within 1948 borders), is still targeted by BDS as a “Brand Israel” normalization event.²⁵

6. Kinetic Material Support: Tactical Equipment and Dual-Use Goods

A defense logistics audit must evaluate the flow of “hard” assets. Does Adidas supply the boots that march into Gaza or the West Bank?

6.1 The GSG9 Tactical Boot Platform

The Adidas GSG9 series (currently GSG 9.2, 9.4, and 9.7) is a specialized tactical boot designed originally for the German counter-terrorism unit GSG 9.⁴

• Design Specifications: The boot features a full-grain leather upper, an abrasion-resistant “adiTUFF” insert, and a specialized outsole for fast-roping and rappelling operations. It is “silent,” durable, and lightweight—optimized for urban warfare and counter-insurgency operations.²⁶
• Classification: This is a Dual-Use Item. While sold to civilians, it is explicitly engineered for combat and policing applications.

6.2 Presence in the Israeli Security Apparatus

There is no evidence in the public procurement database (IMOD tenders) of a “Authorized Vendor” master contract awarding Adidas the role of sole supplier for IDF footwear. The standard-issue IDF infantry boot is typically a generic combat boot manufactured by US contractors (funded by Foreign Military Financing) or local Israeli firms like Noga Einat.

However, forensic observation confirms the widespread use of Adidas GSG9 boots within:

1. Special Forces (Sayeret): Elite units like Sayeret Matkal, Shaldag, and Shayetet 13 have discretionary budgets to purchase non-standard gear. The Adidas GSG9 is a “legendary” status item in these circles.⁵
2. Yamam (Police Counter-Terror): The Israeli National Counter-Terrorism Unit (Yamam) frequently utilizes high-end tactical footwear, with Adidas being a preferred brand due to its athletic design suitable for rapid urban raids.⁴
3. Private Purchase: IDF soldiers often use personal funds to buy “Shadrag” (upgraded) equipment. Tactical supply stores in Israel (e.g., “Rikoshet” or independent dealers) stock Adidas tactical boots.

Verdict on Kinetic Support:

This constitutes Incidental Material Association. Adidas is not strategically arming the IDF in the way a defense contractor like Elbit Systems does. However, the Company profits from the militarization of the market. The availability of their mil-spec gear in Israeli tactical shops means Adidas technology is physically present during incursions into Jenin or Gaza. Furthermore, the “Y-3” fashion line’s militarized aesthetic 28 capitalizes on the “cool factor” of special ops, culturally reinforcing the glorification of state violence.

7. Retail Geography: The Normalization of Annexation

The physical location of retail outlets is a key indicator of complicity. A store is not just a point of sale; it is a permanent flag planted in the territory.

7.1 The “Adidas Israel Ltd.” Subsidiary

Adidas operates in Israel through a wholly-owned subsidiary, Adidas Israel Ltd., registered in Holon.²⁹ This entity manages the import, marketing, and distribution of goods.

• Financial Integration: Being 100% owned, all profits generated in Israel—including those from settlement sales—are consolidated into the Adidas AG global balance sheet. There is no firewall.

7.2 Settlement Penetration via Franchisees

Adidas has adopted a franchise model for expansion, notably partnering with Electra Consumer Products.⁸

• The Electra Connection: Electra is a subsidiary of the ELCO group. The parent company, Electra Ltd., is heavily involved in the construction of checkpoints, the separation wall, and settlement infrastructure. By designating Electra as a key franchisee, Adidas is channeling revenue to a corporate group that actively builds the apartheid apparatus.
• “Arab Sector” Whitewashing: Recent reports indicate Electra is opening Adidas stores in Arab towns like Tamra and Taybeh.⁸ This is a classic “purplewashing” or “diversity washing” tactic—using expansion into Palestinian-Israeli communities to mask the deeper alliance with a settlement-building conglomerate.

7.3 Mall Forensics: The Grey Zones

• Ma’ale Adumim (Adumim Mall): This is a definitive settlement location in the West Bank. While there is no corporate-owned “Adidas” flagship here, authorized retailers (e.g., “Sport Hod”) and the Delta Galil (Delta Israel) branch sell Adidas products.³ The supply chain actively services this illegal outpost.
• Pisgat Ze’ev: A settlement neighborhood in East Jerusalem. Delta Galil operates a branch here.⁹ Adidas products flow into this annexed territory, treating it as indistinguishable from Tel Aviv.
• Hadar Mall (Talpiot): Located in the Talpiot Industrial Zone, West Jerusalem.³² While ostensibly in “Israel Proper,” Talpiot is built partly on “No Man’s Land” and lands expropriated from the Palestinian village of Beit Safafa. The presence of an Adidas Outlet here ³³ services the settler population of the southern Jerusalem periphery (e.g., Har Homa, Gilo). It acts as a logistical hub for the “Greater Jerusalem” settlement bloc.
• Mamilla Mall: Located right on the Green Line outside the Old City. This mall was built on the ruins of the Mamilla neighborhood (ethnically cleansed in 1948) and the historic Mamilla cemetery. It is a prime location for “Brand Israel” tourism. Adidas maintains a high-profile store here.³⁴

8. Risk Assessment and Future Outlook

8.1 The “BDS List” Status

Currently, Adidas occupies a Tier 2 status in the global BDS (Boycott, Divestment, Sanctions) hierarchy.

• Tier 1 (Full Boycott): Companies like HP, AXA, Puma (formerly).
• Tier 2 (Pressure Target): Adidas. The 2018 divestment from the IFA bought the Company “goodwill” with the movement.
• Escalation Warning: The combination of the Delta Galil contract (2022) and the Bella Hadid purge (2024) has severely eroded this goodwill. Activist chatter in late 2024 and 2025 indicates a push to upgrade Adidas back to a Tier 1 target.²⁵ The “organic boycott” movement is already targeting the brand due to the Hadid incident.

8.2 Legal Exposure

• German Supply Chain Due Diligence Act (Lieferkettensorgfaltspflichtengesetz): As a German company, Adidas is legally obligated to identify and mitigate human rights risks in its supply chain. Partnering with Delta Galil—an entity operating on stolen land in violation of international law—creates a direct legal liability. Civil society groups could potentially sue Adidas in German courts for failing to address the human rights violations inherent in the Delta Galil partnership.
• UN Database: Continued association with Delta Galil risks dragging Adidas into the orbit of the UN OHCHR database of complicit entities.

9. Conclusion and Final Verdict

9.1 Summary of Complicity Vectors

9.2 The “Sanitization” Strategy

The audit reveals a sophisticated strategy by Adidas AG. The Company has sanitized its visible portfolio (removing the IFA logo from its marketing) while deepening its invisible supply chain (partnering with Delta Galil). It trades public sponsorship for private profit. The 2018 divestment was a tactical retreat to save brand image, not a moral realignment. The 2024 Hadid incident proves that when the mask slips, the Company’s default allegiance is to the Israeli state narrative.

9.3 Final Verdict: MATERIAL AND IDEOLOGICAL COMPLICITY CONFIRMED

Assessment:

Adidas AG is not merely a passive observer. Through its Delta Galil partnership, it is a financial beneficiary of the settlement enterprise. Through its Ideological Policing of Bella Hadid, it is an active participant in the erasure of Palestinian narrative. Through its Retail Logistics, it normalizes the annexation of East Jerusalem and the West Bank.

Actionable Intelligence:

For stakeholders operating under ethical investment mandates or boycott guidelines, Adidas AG presents a confirmed risk profile. The Company has failed to ring-fence its operations from the illegal occupation and has actively collaborated with settlement-entrenched partners to secure market share. The “neutrality” claimed by the Board of Directors is contradicted by the logistics of their supply chain.

End of Forensic Report.

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