The national coach appeared in front of the press, the test match in Lyon against France is coming up on Saturday (9 p.m., in the WELT sports ticker). But there was of course another topic on the agenda that Friday afternoon: the Nike coup. After more than 70 years of loyal partnership, the sporting goods giant beat out its German rival Adidas at the German Football Association. The DFB is letting the contract with the Herzogenaurach-based group expire and will be equipped by the Americans from 2027. It is the end of a German-German relationship that seemed to last forever.
So what motivated Julian Nagelsmann in this case? “I will still love football. Nothing will change,” said the 36-year-old. He can “understand every opinion. From a trainer’s perspective, it is important to include all opinions. But it’s not my construction site. We now have two important games and then an important interim phase to analyze the course. Then we head towards the EM. I want to use up enough capacity for football, not for everything else.”
In order to end the question-and-answer game on the sensitive topic for the DFB, his press spokeswoman referred to the FAQ on the association’s website, “where all questions about the change of supplier are answered.” For example, why the DFB awarded the equipment partnership at this time and communicated the award in advance of the European Championship.
“The timing of the tender,” it said, “is in line with market practice with regard to the planning and lead times and was discussed in advance with all relevant market participants. Several listed companies were involved in the process. Since experience has shown that such a conclusion can potentially have an impact on the capital markets, all participants in the process were informed in parallel and subsequently communicated publicly. This direct communication was also carried out in order to minimize any risk of insider trading and to protect existing and new partners, including their employees, as well as the DFB and its employees and committee members.”
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It was also discussed whether it is true that the future Revenues really amount to an incredible 100 million euros per year, as reported by the “Handelsblatt”. “In the tender process,” it reads, “all those involved committed themselves to confidentiality; the DFB will therefore neither confirm nor deny or comment on figures regarding the economic framework of the partnership with Nike.”
Nike wants to turn national players into “global heroes”.
Former Adidas boss Herbert Hainer did this on Friday alongside a squad of high-ranking politicians such as Economics Minister Robert Habeck (Greens) and Bavaria’s Prime Minister Markus Söder (CSU). He was surprised by the change in supplier. As the current president of FC Bayern, he also emphasized the importance of Adidas for the German record champions. “I don’t know the details or background, but I’m surprised that this decision has now been made by the DFB after a successful partnership spanning over 70 years,” Hainer told BILD.
Of course, the loyalty doesn’t come by chance. On the one hand, Hainer headed the Bavarian sporting goods company for 15 years. During this time, the company’s value increased from three billion euros to twelve times. On the other hand, Hainer was responsible for Adidas AG’s investment in FC Bayern München AG in 2002. He has been president of the German record champions since 2019. He is also chairman of the supervisory board. Alongside Telekom and Audi, Adidas is a so-called main partner of FC Bayern. Like stadium partner Allianz and Audi, Adidas has a stake in the series champion. The sporting goods group holds 8.33 percent of the shares. The main shareholder of FC Bayern München AG is the parent club, which holds 75 percent of the shares.
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But when Bayern Munich’s national striker Thomas Müller and his colleagues move into their lovely quarters in the “home ground” of Herzogenaurach in a few weeks, the check-in will take on a spicy note. The “Home Ground”, a telling name for the national team’s quarters on the campus of supplier Adidas, which has already been used for the 2021 European Championship, will soon lose part of its homely feelings for the DFB. Adidas has repeatedly hosted the DFB team. The doors are likely to close in two and a half years at the latest. Because then Nike’s CEO John Donahoe, who is under economic pressure, allegedly wants to turn German footballers into “global heroes,” as he postulated.
Changes in supplier are nothing unusual in the world of sports – especially when they happen to the industry leader Nike. Years ago, for example, when tennis player Serena Williams was no longer an aspiring teenager but a world star, Nike gave her a contract that the previous Williams partner Puma had no objection to.
Nike instead of Adidas – “It’s also about getting one over on the competitor”
The DFB surprisingly changes its supplier. The new partner Nike celebrates its success against rival Adidas. “It is also a method that you pay a premium to take an important asset away from your main competitor,” said sports economist Christoph Breuer on WELT TV.
But the marriage between Adidas and the DFB is something special, and not just because of the four World Cup titles won together by the men’s team alone. The pictures in which company founder Adolf Dassler can be seen personally screwing studs into the shoes of German national players are legendary – thus manifesting his very personal part in the “Miracle of Bern” in 1954. From then on, Adidas was essentially part of the identity of the German national football team.
Adidas says it was taken by surprise and was only informed about the signed deal. Nike’s attack against its rivals from Germany with the active consent of the DFB came from the background, like Helmut Rahn’s legendary shot to make it 3-2 against Hungary. But because the DFB is pushed into the defensive from an economic perspective, sentimentality seemed to have taken a back seat. As an association, you have to be able to afford loyalty. The DFB obviously couldn’t do that. According to industry circles, the offer was too lucrative, which is not surprising: Nike generates twice as much annual sales as Adidas with the equivalent of 47 billion euros, while Puma follows in third place with 8.5 billion euros.
Documentation highlights the DFB’s “deep red numbers”.
A report has been available in the ZDF media library since this Friday; it is entitled “European Championship Millionaire Game”. It documents how much German football and the DFB need a successful European Championship. The film sheds light on the “deep red numbers that also caused the much-discussed change of supplier. The high cost factor of the DFB Academy, the financial reluctance of the major sponsors and the threat of deprivation of non-profit status are coming into focus,” as ZDF announced. Because “other long-standing sponsors are also undergoing changes.” ZDF has the contract between the DFB and Volkswagen, which expires at the end of the year: “Instead of the 40 million euros for 2023/2024, according to ZDF information, VW only wants to transfer 18 million euros per season for sponsorship, less than half .”
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However, in the football business, Adidas is the world market leader ahead of Nike. The Franconians equip the Mexican national team, which is important for the huge North American market, and all 30 teams in the rapidly growing Major League Soccer (MLS), including Inter Miami with Lionel Messi. Nike, on the other hand, had recently behaved more defensively in the football market – Borussia Dortmund, like Manchester City, switched to Puma, FC Barcelona also left the American flag, as did Bundesliga club RB Leipzig.
The fact that Nike has landed and announced the coup now – shortly before the start of the European Football Championship in Germany – is causing anger in Herzogenaurach. Adidas CEO Björn Gulden proudly showed the German footballers’ new tournament jerseys, which had previously been kept secret, on March 12th, and they were officially presented the next day. Just a few days later, Nike boss Donahoe traveled to Germany to sign the deal that had apparently been negotiated for a long time – which raised questions online about timing and style.
“Adidas’ reaction suggests it wasn’t stylish”
“You can’t keep a deal with this dimension secret until after the European Championships,” says BILD sports director Walter M. Straten about the DFB’s change of supplier. The DFB will play with Nike instead of Adidas from 2027. The contract with the US sports manufacturer is scheduled to run until 2034.
Source: WELT TV / Nele Würzbach
For Adidas it initially has little economic significance. The German market is not of outstanding importance for the company in terms of revenue. According to Adidas, well over 90 percent of sales are generated abroad. And the DFB jerseys with the three stripes – currently a bestseller at a price of over 100 euros each – will be produced and sold until the end of 2026 – the European Championship, the Olympic Games in which the DFB women take part and the next World Cup in the USA, Mexico and Canada are still within this time window.
There is no direct refinancing of sponsorship funds anyway. The 50 million euros annually for the DFB – the most expensive equipment contract for a sports association in the world – is more profitable for Adidas through brand visibility; jersey sales only recoup a portion of the expenses.
“Adidas and Nike are strong brands. Not even the DFB can destroy it.”
The DFB will change its supplier and will play with Nike instead of Adidas from 2027. The contract with the US sports manufacturer is scheduled to run until 2034. “The DFB has been in the red for a long time on the brand account,” says Christoph Hildebrand, managing director of Busch Markenberatung, on WELT TV.
Source: WELT TV / Nele Würzbach
Nevertheless, the news of losing one of the most important figureheads for the national team is a blow to the books – and it comes at the wrong time for Adidas. Gulden, once a professional footballer himself, has a special affinity for football. The company, which he took over a good year ago, got into trouble mainly due to experiments in the lifestyle sector, and in 2023 there was even a small loss for the first time in over 30 years. After his experiences with rapper Kanye West’s products, Gulden wants to do more sport again at Adidas – and especially football. He doesn’t just show this when he demonstratively lets the ball dance on his foot for the cameras before the annual press conference.
Nike, which, like its German competitors, has been affected by global economic problems and the uncertainties of the Chinese growth market, has recently had to cope with severe losses on the stock market – and was only able to present its investors with a mixed forecast for the current year.
According to media reports, the 100 million euros per year to be paid for the kickers of the financially and sportingly starved DFB is a questionable undertaking from a commercial perspective given the ineffectiveness of at least the national team. From the DFB’s perspective, however, this seems like a jackpot. “We are grateful to be able to look forward to an economically stable future again as an association thanks to Nike’s commitment,” said DFB Treasurer Stephan Grunwald.
