After the news broke this week that Nike removed Adidas’ historic 77-year sponsorship of the German national soccer team uniforms, the commercial dispute between the American and German brand was put on the table once again. In reaction, Nike shares gained 0.6% in New York after Adidas closed down 0.4% in Frankfurt.
And, like any market, moves from one sponsorship to another are common among football teams. Now, with the transfer of Germany from Adidas to Nike, it is left with the largest number of World Cup teams. Thus, Nike carries its logo in t-shirts of teams such as Germany, Brazil, France, England, while Adidas Italy, Spain and Argentina.
But why did this commercial shift in Germany take place?
The German Football Association, DFB, explained in a statement on its website that Nike presented “the best offer economically by far.” It also included a commitment to support the organization’s amateur sports activities and encourage the development of women’s football.”.
And how negative is this for Adidas? “ANDs negative in the sense that Adidas and Germany were an almost indissoluble marriage. But in these advertising matters what matters is money. For Adidas this will be a blow that forces them to look for important teams and not be left with only Colombia and Spain, said Andrés Charra, sports lawyer.
In terms of marketing investment, Nike leads Adidas. While the German company invests around US$2.9 billion, which is 12% of its sales, Nike is investing US$3.9 billion in marketing and communications (8%). And in terms of income, Nike also wins the fight against Adidas. In 2023, the first had a turnover of more than US$51,000 million, while its rival US$23,000 million, even with falls. This all has to do with Nike making steady progress in international soccer since its first breakthrough in 1996, when it struck a deal with Brazil.
But these moves, as said, are more common than you think in the football business.
For example, in early 2023, the Italian soccer team reported a new phase for your image. He presented his new t-shirt with Adidas, after almost 20 years with Puma, other major national team sponsors. Another example is also given in 2023, when it was indicated that Puma will be the new brand of the Portuguese team, a decision that will become effective when the relationship between Nike and Portugal, a decades-long agreement, ends this year.