Nike inflicts huge home defeat on Adidas by nabbing German soccer team kit deal

Nike inflicts huge home defeat on Adidas by nabbing German soccer team kit deal - Business and Finance - News

Adidas Suffers Another Blow as German Football Association Announces Partnership with Nike

The past few months have been challenging for Adidas, the renowned German sportswear brand. Following a contentious breakup with US rapper Ye that contributed to the company’s first loss in over seven decades, Adidas has now experienced a significant setback on home soil.

On Thursday, the German Football Association (DFB) declared that Nike would assume the role of the official kit supplier for Germany’s national soccer teams starting from 2027 and lasting until 2034. This decision marks the end of an extensive partnership between Adidas and German football, which encompassed four victories in the FIFA World Cup for the men’s team.

DFB President Bernd Neuendorf expressed his gratitude to Adidas, stating that German football owes a significant debt to the partnership and remains dedicated to achieving further success together until their contract’s expiration in 2026.

In a statement, the DFB revealed that Nike presented the most financially enticing offer and impressed with its plans for expanding women’s football, as well as boosting amateur and grassroots sports in Germany. The DFB did not disclose the worth of the new deal.

An Adidas spokesperson acknowledged that they had been informed by the DFB on Thursday that a new supplier would take over starting from 2027. Adidas will continue to provide kits for seven national teams, including Germany, Italy, and Spain, up until Euro 2024.

Germany will host the Euro 2024 men’s championship in June and July of this year. However, fans will notice a shift from Adidas’ three-stripe logo to Nike’s trademark tick on the jerseys of Germany’s national teams by just under three years from now. German economy minister Robert Habeck reportedly shared his dismay, commenting that he “could hardly imagine” the prospect of Nike replacing Adidas as the official kit supplier.

The announcement arrives at an inopportune moment for Adidas, which recently reported a net loss of €58 million ($63 million) in its core business during 2023. The setback was attributed to the decline in sales for Yeezy-branded clothing and sneakers, as well as a substantial tax burden.

Last week, Adidas terminated its lucrative nine-year partnership with Yeezy designer Ye, following his string of anti-Semitic statements. The financial fallout coupled with the loss of the DFB contract represents a double blow for Adidas, leaving many wondering about the company’s future prospects.

Founded in 1949 in Herzogenaurach, a small town outside Nuremberg in south-east Germany, Adidas and its iconic three-stripe logo have long been synonymous with German identity. This partnership between the DFB and Nike marks a significant change in this historic dynamic.