UPDATE 3-Adidas curtails Chelsea shirt deal, lifts profit forecast
* Chelsea deal to end in 2017 instead of 2023
* Adidas wants to limit marketing budget for sports deals
* Chelsea compensation to boost Adidas profits from Q2 (Adds details, background)
By Emma Thomasson
BERLIN, May 11 (Reuters) - Adidas AG is ending its shirt sponsorship deal with English soccer side Chelsea six years early as part of a shift to partner with fewer clubs, prompting the German firm to raise its full-year profit forecast.
Chelsea, which won the Premier League title last season, has had a poor run of form which means it will not compete in European football next season under new boss Antonio Conte.
Adidas has poured cash into soccer deals as it fights to retain its leading position in the sport in the face of increased competition from Nike as well as relative newcomer Under Armour and German rival Puma.
It agreed in 2014 to pay 750 million pounds ($1.1 billion) to replace Nike as sponsor of Manchester United for a decade, a record kit deal for the sport that Adidas says is paying off despite the club's dip in form since then.
That deal has prompted sports marketing experts to warn of an inflationary spiral as other clubs push for more, with Spain's Real Madrid reported to be seeking to force Adidas to top the Manchester United deal when it comes up for extension. Continued...