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🇩🇪 The German national football team is bidding farewell to its enduring partnership with Adidas, marking a significant shift as Nike steps in to make their kits starting from 2027. Under the new agreement, Nike will be the exclusive supplier of the team's attire until 2034, replacing Adidas, which has held this role since 1954. 💲The decision might have been influenced by amidst financial challenges for Adidas, evident in their recent €58 million ($63 million) net loss for 2023. Reports suggest that Nike's commitment includes an annual payment of around €100 million (£86m & $108m), a substantial increase compared to Adidas's previous contribution of €50 million. 📊 In 2018, it was reported that Adidas signed an eight-year contract with the German Football Association (DFB) worth approximately €50 million annually for the rights to supply the German national team's kits. From a financial perspective, the DFB’s decision will not have any immediate impact on Adidas as its contract covers this year’s Euro 2024 tournament which will be hosted by Germany as well as the 2026 World Cup. 🤝🏽 This transition signals a new chapter for both the German team and the sports apparel landscape, as Nike takes the helm in outfitting one of football's most iconic squads.

Germany’s longstanding tie up with adidas is set to come to an end and Nike will make its football kits from 2027. adidas last signed an eight-year contract with the Germany Football Federation in 2018, meaning the men’s 2026 men’s World Cup will be one of the last times the German team’s kit will be worn. During adidas partnership with Germany, which has spanned more than 70 years, the team has won four men’s World Cups, three men’s Euros, two women’s World Cups and eight women’s Euros with the collaboration responsible for many iconic shirts during the 1980s and 1990s. The Adidas-Germany partnership has been deeply ingrained in the cultural fabric of German football and the kits have become synonymous with the team's identity, representing their values, heritage, and traditions. Two questions arise for me. 1) Is this another signal of the well publicized tough times adidas is experiencing and 2) do fans really care who makes their favorite kits as long as they’re cool and fashionable ? What do you think ?

After 70 years, the German Football Association (DFB) is ending their relationship with Adidas and switching to Nike to supply their national team kit. This is a big deal for German sports as a whole and has even prompted some German politicians to publicly criticize the decision. Germany's Vice Chancellor Robert Habeck said that he "would have hoped for more patriotism." Adidas is a German national treasure, one of the most recognized brands in the world and indisputably the biggest German sports brand. Putting aside German teams and athletes themselves, Adidas basically IS German sport. But at a certain point, economics do matter. Nike is going to pay DFB €100 Million a year, double the €50 Million Adidas was paying. The Athletic Interest is a great media brand that breaks down the business of sports. Their article below outlines some key points: -In 2006/2007, Nike offered to sign DFB for double the price Adidas was paying, but the deal was rejected. This decision resulted in legal disputes implying something shady was going on. -As an overall bigger company, Nike can provide a bigger distribution network for DFB. Nike has over double the revenue of Adidas, greater market share, and is a more recognizable brand. -The DFB also points to their ability to better fund grassroots German football as a result of this deal. Sports is an integral part of culture but balancing cultural interests with economic interests is tough for any sports organization. For the DFB leadership, I can see why this decision makes sense for them. https://lnkd.in/evPWp4d2 #nike #adidas #germany #dfb #germanfootball #sports #footwear #sneakers

ADIDAS have just lost their most historic sports partner. It's just been announced that the German National Team will be ending their 77-year partnership with Adidas, to move to their largest competitor, Nike. This news comes on the back of what's been an incredibly turbulent two years at Adidas. The German sportswear giant posted its first annual loss in more than 30 years earlier this month after having to deal with the fall-out of cutting ties with Kanye West and suspending its highly profitable Yeezy line. However, the recent announcement regarding the German National Team switching to Nike is incredibly symbolic of the brand's recent downfall... Germany and Adidas go hand-in-hand. The National team currently trains at the Adidas facilities in Herzogenaurach. Bayern Munich, Germany's most successful football team, is part-owned by the sportswear brand. As a football fan, I struggle to imagine the German team playing without the three stripes on their shirt. The switch is set to take place in 2027, so we'll still see the national team play in Adidas during the upcoming UEFA Euro 2024 and at the World Cup in 2026. #news #sportsbusiness #partnerships

Soccer is filled with competitiveness, drama and layered stories. Derbies between teams. Histories of clubs and the people that built them. Styles of play. Drama around player transfers. The sport has it all. And one of the things it has in droves are deep rooted rivalries. Enter Nike and adidas. adidas v Nike The two biggest brands in global soccer might be as big as any rivalry that the sport has to offer. On and off the field, both brands have enjoyed tremendous success as product suppliers to the world's biggest national teams, clubs, players and so on. And each brand has deep rooted ties to two of the most successful soccer nations in the world... https://lnkd.in/geF3D2Sw

The German national football team will end its 77-year sponsorship with Adidas, switching to Nike in 2027. This move marks a significant change as Nike secures a seven-year deal as the main supplier for all national football teams. German economy minister Robert Habeck expressed surprise at the break with Adidas, calling it a part of German identity. Nike's financial offer and commitment to support grassroots sports and women's football contributed to their selection. The DFB did not disclose the financial terms of the deal, but emphasized transparency and gratitude for securing a stable financial future. Adidas, facing a blow with this loss after seven decades of partnership, stated that the change would not affect them immediately, as their contract extends to Euro 2024 and the 2026 World Cup. Nike aims to elevate the German team's global brand and athletes to global heroes. The economic effect on Adidas due to losing the sponsorship of the German national football team to Nike could potentially impact the brand's visibility and sales, especially in the football market. Adidas will lose the association with one of the most prestigious national teams in football, which might affect its brand image and sales in the long term. On the other hand, Nike's partnership with the German national football team will likely boost its visibility and sales, especially in the football market. This deal allows Nike to strengthen its presence in the football industry and increase its market share, potentially leading to higher revenues and brand recognition globally. Some sites say that the contract exceeds 100 million euros annually https://lnkd.in/dvYvyThB

In 2004, Nike was getting crushed by Adidas in European football. Then they made ONE genius move and stole Adidas' football empire. Here's the full story: 👇 The early 2000s were brutal for Nike in Europe: Adidas owned EVERYTHING: - Real Madrid - Bayern Munich - UEFA Champions League - FIFA World Cup But Nike saw something everyone missed: Football wasn't just a sport. It was entertainment. And they had the perfect star for their plan... A Brazilian magician named Ronaldinho. Nike's plan was revolutionary: Don't just sponsor football. Create a whole new football culture. They called it "Joga Bonito" (Play Beautiful). What happened next was incredible... They created something nobody had seen before: A video of Ronaldinho hitting the crossbar 4 times. People said it was impossible. It became YouTube's first viral hit. 1 million views.In 2005! But that was just the beginning... Nike signed the most entertaining players: Ronaldinho's magic Henry's elegance Young Cristiano's flair And then it happened: 2004: Struggling in Europe 2006: Overtook Adidas in market share Nike Football revenue? Passed $1B They'd created a movement. The best part? A whole generation grew up wanting to "Play Beautiful" like their Nike heroes. The kings of football weren't just winning. They were entertaining. Today: Nike owns football culture. All because in 2004, they realized: To win in sports, Don't just sell the game. Sell the dream.

The German Football Association (DFB) has decided to end its 70-year contract with the German company Adidas to supply the German national team with uniforms and equipment, and to sign a contract with the US company Nike for the period 2027-2034. The announcement of the switch in support of the German national team from Germany's leading sportswear manufacturer, Adidas, to its biggest rival, US-based Nike, just before the European Championships hosted by Germany this year, sent shockwaves through Germany and abroad. With the German Football Association (DFB) in financial difficulties partly due to the poor performance of the German national team and other factors, Nike apparently won the new contract with an offer of €100 million a year, twice as much as Adidas (€50 million). Adidas' trademark 'three stripes' had become a German football tradition, but now Adidas has introduced a rather bizarre pink and purple uniform for away games in the European Championships in an attempt to appeal to the ticktock generation. This was controversial, with some saying the color scheme went against German football tradition. Adidas shares reacted surprisingly positively to the news of the DFB's change of partner on 22 March, rising +0.5% on the day. Nike shares, on the other hand, reacted quite negatively, falling -7.7% on the same day. The causal relationship is not clear, but it could be a warning that an American company will not get much in return for its support of the German national team. Towards the end of 2026, when the supply contract expires, the last of the national team's 'three stripes' could become as popular a collector's item as the 'Berlin Wall'. I secretly hope that the German national team will do well in the European Championship and that the surge in sales of uniforms and beer will boost German consumer spending, which has been slow to recover after a positive turnaround in real wages.

German soccer and Adidas are breaking up 💔 American sportswear giant Nike will supply all of Germany's national teams with its apparel and equipment from 2027, as announced by the German Soccer Federation (DFB). The new deal will continue for 8 years till 2034 and ends Germany's long-standing association with Adidas which last for the past 70 years. German Soccer is looking to work with Nike as they have made the best financial offer and impressed the Federation with the content of their vision. Under the deal, Nike will not only provide apparel and equipment to all DFB national teams but will also promote amateur football and ensure that women's football in Germany continues to develop sustainably. The media reports that the DFB stands to receive more than €100 million ($108 million) – around twice as much as it currently receives from German outfitter Adidas. In 2023, Nike generated sales of more than $51 billion (€47 billion), an increase of 10% compared to 2022. While Adidas reported a loss that represents a further setback in already difficult economic times as the sales fell slightly to around €21.4 billion. For the first time in over 30 years, Adidas slipped into the red, with a loss of around €75 million after it ended its collaboration with Kanye West. Now it will be interesting to know how Adidas will maintain its market share and save itself from financial loss after losing consumer trust. Hope you find this post interesting! Follow me (Mohit Rajani) for more: #investmentbanking #finance #investing #equityresearch  

Big news in the world of sports! Nike has just replaced adidas as the new shirt sponsor for the German football team after a relationship spanning over 77 years. This comes as a surprise, the link between German football and adidas is a relationship that most sports fans will recognize, having been forged over many decades. Fortune has more details on this major change in brand sponsorship. Check it out! #brandloyalty #brandsponsorships #brandmanagement