In March 2018, 130 Palestinian football clubs urged adidas to end its sponsorship agreement due to the Israel Football Association's (IFA) complicity in violations of international law. According to the letter, “[t]he IFA sponsors football matches in illegal Israeli settlements in the West Bank.” The letter claims that “[a]didas is lending its brand to cover up and whitewash Israel’s human rights abuses…giv[ing] international cover to [its] illegal settlements.” The letter cautions that adidas may be  eligible for inclusion in the UN’s database of complicit companies doing business in or with Israel’s illegal settlements.

Adidas responded to these allegations after which the Palestinian Campaign for Academic and Cultural Boycott of Israel (PACBI) prepared a rejoinder in response. Both statements are available below. In July 2018, the IFA announced that Puma would be replacing adidas as its kit partner. Adidas has stated that their decision was not politically motivated.