Adidas Faces Major Setback as Nike Secures German Soccer Team Kit Deal
Following a recent high-profile split with rapper Ye that contributed to a significant loss for Adidas, the renowned German sportswear brand has now encountered a substantial setback on its home ground.
Adidas has faced more setbacks recently. First, a costly split with US rapper Ye led to a rare loss for the German sportswear giant last year. And now, it has suffered a major blow on its home turf.
The German Football Association (DFB) made an announcement on Thursday. They revealed that Adidas' rival, Nike (NKE), will be the official kit supplier for national soccer teams from 2027 to 2034. This decision marks the end of over seven decades of partnership between Adidas and the sport, which included four World Cup wins for the men's team.
In a recent announcement, DFB President Bernd Neuendorf expressed gratitude towards Adidas for their partnership and acknowledged that German football has greatly benefited from it. He also emphasized the association's strong dedication to continuing to work together towards achieving more success until the contract expires in 2026.
Adidas Yeezy model trainers inside the Presented By sneaker resale store in London, United Kingdom in August 2021.
Adidas Yeezy model trainers inside the Presented By sneaker resale store in London, United Kingdom in August 2021.
Hollie Adams/Bloomberg via Getty Images
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The DFB mentioned that Nike had submitted the most appealing financial offer and showcased a strong vision for enhancing women's football, as well as amateur and grassroots sports in Germany. However, the exact value of the new deal was not disclosed.
On the other hand, an Adidas representative stated in a press release that they were notified by the DFB about the federation's decision to switch to a new supplier starting from 2027.
Germany is set to host the Euro 2024 men's championship in June and July. Adidas will provide kits for seven national teams, such as Germany, Italy, and Spain.
However, in less than three years, fans will notice Nike's iconic tick logo on Germany's national team jerseys instead of Adidas' three stripes. German economy minister Robert Habeck expressed his disbelief in this change during an interview with local news agency DPA on Friday.
Adidas and German football have a strong partnership, which he described as a part of German identity. He mentioned that he would have preferred to see more local patriotism in the collaboration.
Founded in 1949 in Herzogenaurach, a small town near Nuremberg in south-east Germany, Adidas also created its famous three-stripe logo that same year.
Adidas faced a setback recently when DFB made an announcement. The sportswear company reported a net loss of €58 million ($63 million) in its core business for 2023. This was due to a decrease in sales of its Yeezy-branded clothing and sneakers, as well as a high tax burden.
Adding to the challenges, Adidas ended its profitable nine-year partnership with Yeezy designer Ye, also known as Kanye West. This decision was made in October 2022 following controversial anti-semitic comments made by the rapper.
“We didn’t have a great year,” chief financial officer Harm Ohlmeyer told journalists last week.
Editor's P/S:
The recent news of Adidas' setback on its home turf, losing the official kit supplier role for German national soccer teams to Nike, is a significant blow to the German sportswear giant. This decision ends a partnership spanning over seven decades, which included four World Cup victories for the men's team. The financial ramifications of this loss and the blow to Adidas' brand identity are yet to be seen, but it undoubtedly represents a major shift in the German soccer landscape.
Despite the DFB's decision, it's important to acknowledge the long-standing partnership between Adidas and German football. Adidas has been an integral part of the sport's history and has played a crucial role in its success. The iconic three stripes logo has become synonymous with German soccer, and its absence from national team jerseys will be noticeable. It remains to be seen how Nike's involvement will impact the sport in Germany, but the loss of such a deeply rooted partnership will be felt by both Adidas and German soccer fans alike. and whether it can maintain its position as a leading sportswear brand in Germany.
