Team sales nike. Nike Team Sales: Exploring the Success of USWNT Jerseys and Custom Uniforms

How has the USWNT’s success impacted Nike’s jersey sales. What factors contribute to Nike’s dominance in the athletic apparel market. How can custom team uniforms benefit organizations and foster inclusion.

The Rise of USWNT Jersey Sales: A Record-Breaking Phenomenon

The United States Women’s National Team (USWNT) has not only been making waves on the soccer field but also in the realm of merchandise sales. Nike, the official supplier of USWNT jerseys, has reported unprecedented success in this area. Let’s delve into the specifics of this remarkable achievement.

• The 2019 USWNT stadium home jersey has become the best-selling soccer jersey ever on Nike.com in a single season.
• Sales of USWNT jerseys have surpassed those of the men’s team and all other U.S. soccer jerseys.
• According to Fanatics, another official licensed seller, USWNT jersey sales have increased by over 500% compared to the same period in 2015.

This surge in popularity can be attributed to the team’s outstanding performance in the Women’s World Cup, where they reached the finals for the third consecutive time. The increased visibility and success of the team have clearly translated into a significant boost in merchandise sales.

Impact on Nike’s Business

The success of the USWNT has had a ripple effect on Nike’s overall business strategy and performance. How has this impacted the company’s approach to women’s sports?

• Nike’s women’s business grew by double digits in fiscal year 2019, with acceleration in the latter half of the year.
• The company achieved the number one market share position for bras in North America for the first time in its history.
• Nike’s renewed focus on women’s sports has led to thoughtful design, powerful brand messages, and digitally-led distribution.

Mark Parker, Nike’s president and CEO, emphasized the importance of this year in the evolution of the women’s offense at Nike. The energy surrounding the World Cup, with Nike kits worn by nearly two-thirds of the teams and Nike boots worn by half the players, has significantly contributed to this success.

Nike’s Dominance in the Athletic Apparel Market

Nike’s success with the USWNT jerseys is just one facet of its overall dominance in the athletic apparel market. What factors contribute to Nike’s position as a global leader in this industry?

• Extensive product range: Nike offers a wide variety of athletic shoes, apparel, and sports equipment.
• Strategic acquisitions: The company has acquired several footwear and apparel brands, including Converse, Hurley International, and Umbro.
• Strong brand recognition: The Nike swoosh is one of the most recognized logos worldwide.
• Celebrity endorsements: Nike uses sponsorship agreements with celebrity athletes, professional sports teams, and college athletic programs to promote its products.
• Global presence: As of 2021, Nike employed over 73,000 people and operated more than 1,000 retail stores worldwide.

These factors have contributed to Nike’s ability to maintain its market leadership position in a highly competitive industry. How does Nike’s revenue break down by segment in North America?

In 2021, Nike’s North American revenue from footwear alone amounted to approximately 11.64 billion U.S. dollars. This figure underscores the company’s strong performance in its home market and its ability to generate substantial revenue from a single product category.

The Evolution of the Sports Apparel Industry

The sports and fitness clothing industry is characterized by intense competition and evolving consumer demands. How has the industry landscape changed in recent years?

• Increased fragmentation: Many brands, from basic discount options to high-end fashion names, compete in the market.
• Demand for versatility: Consumers are seeking more versatile wear with wider functionality.
• Fusion of sports and fashion: Some companies are collaborating with fashion designers to produce new clothing styles and expand their product lines.
• Trend towards casual wear: Consumption is driven by a trend toward less formal dress in the workplace.
• Demographic targeting: Specific demographics, such as teenagers and baby boomers, are influencing demand.

These changes have forced even well-established brands to continually innovate and adapt to maintain their market share. How have other key players in the industry responded to these shifts?

Companies like Reebok, Adidas, Puma, and Under Armour have also been actively participating in mergers and acquisitions, expanding their product lines, and exploring new market segments to stay competitive in this dynamic industry.

The Power of Custom Team Uniforms

While professional sports jerseys like those of the USWNT drive significant sales, custom team uniforms also play a crucial role in the sports apparel market. How can organizations benefit from custom team uniforms?

• Foster inclusion: Custom uniforms can create a sense of unity and belonging within a team or organization.
• Enhance brand identity: Uniforms can be designed to reflect an organization’s unique brand and values.
• Improve team spirit: Wearing matching uniforms can boost morale and team spirit.
• Create memorable experiences: Custom uniforms can contribute to unique and lasting experiences for team members.

Many companies now offer online platforms for ordering custom team uniforms, making the process more accessible and efficient. What features do these platforms typically offer?

• Easy design tools: Users can often customize colors, logos, and other design elements online.
• Wide range of products: Options may include jerseys, shorts, socks, and other team gear.
• Bulk ordering: Platforms usually allow for ordering multiple uniforms at once, often with discounts for larger orders.
• Direct shipping: Some services offer to ship uniforms directly to individual team members.

These features make it easier for organizations of all sizes to create professional-looking, cohesive uniforms for their teams.

The Impact of Major Sporting Events on Apparel Sales

The success of the USWNT and the subsequent surge in jersey sales highlight the significant impact that major sporting events can have on the apparel industry. How do events like the World Cup influence consumer behavior and sales trends?

• Increased visibility: Major events draw global attention to teams and athletes, boosting interest in related merchandise.
• Emotional connection: Fans often purchase jerseys and other apparel to show support for their favorite teams during high-stakes competitions.
• Limited-edition items: Brands may release special edition products tied to specific events, creating a sense of urgency among consumers.
• Post-event momentum: Successful performances can lead to sustained interest and sales even after the event concludes.

The USWNT’s journey to the World Cup finals serves as a prime example of how on-field success can translate into off-field commercial success. What other factors contributed to the team’s ability to capture public attention and drive sales?

The USWNT’s strong social media presence and engagement, combined with their advocacy for gender equality in sports, helped to create a narrative that resonated with many fans. This increased emotional investment likely contributed to the surge in jersey sales and overall support for the team.

The Role of Technology in Sports Apparel Innovation

As the sports apparel industry continues to evolve, technology plays an increasingly important role in product development and marketing. How are companies like Nike leveraging technology to stay ahead of the competition?

• Advanced materials: Companies are developing new fabrics that offer improved performance, comfort, and durability.
• Data-driven design: Brands are using athlete data and feedback to inform product design and improvements.
• 3D printing: This technology is being used for prototyping and even producing certain components of shoes and apparel.
• Augmented reality: Some brands are experimenting with AR for virtual try-ons and enhanced shopping experiences.
• Wearable tech: Integration of sensors and smart fabrics into apparel for performance tracking.

These technological advancements not only improve the functionality of sports apparel but also create new marketing opportunities and ways to engage with consumers. How might these innovations shape the future of the sports apparel industry?

As technology continues to advance, we may see even more personalized and performance-oriented products. This could include apparel that adapts to an individual’s body temperature, shoes that adjust their cushioning based on running surface, or jerseys with built-in biometric sensors for real-time performance tracking.

Sustainability in Sports Apparel: A Growing Concern

As environmental awareness increases globally, sustainability has become a significant factor in the sports apparel industry. How are major brands addressing this issue?

• Use of recycled materials: Many companies are incorporating recycled plastics and other materials into their products.
• Sustainable manufacturing processes: Brands are working to reduce water usage, energy consumption, and waste in their production processes.
• Circular economy initiatives: Some companies are implementing take-back programs to recycle old products into new ones.
• Eco-friendly packaging: Efforts are being made to reduce packaging waste and use more sustainable materials.
• Transparency: Many brands are increasing transparency about their supply chains and environmental impact.

Nike, for instance, has set ambitious sustainability goals as part of its “Move to Zero” initiative. How might this focus on sustainability impact consumer choices and brand loyalty in the coming years?

As consumers become more environmentally conscious, sustainability practices may become a key differentiator for brands. Companies that can effectively communicate their sustainability efforts and demonstrate tangible results may gain a competitive advantage in the market.

The Intersection of Performance and Sustainability

One of the challenges in the sports apparel industry is balancing performance with sustainability. How are brands addressing this challenge?

• Innovative materials: Development of high-performance, eco-friendly materials that don’t compromise on quality.
• Durability focus: Creating longer-lasting products to reduce overall consumption and waste.
• Multi-functional designs: Producing versatile apparel that can be used for multiple activities, reducing the need for separate items.
• Repair services: Some brands are offering repair services to extend the life of their products.

These efforts demonstrate that sustainability and performance are not mutually exclusive. As technology advances, we may see even more innovative solutions that address both environmental concerns and athletic performance needs.

The Global Expansion of Sports Apparel Brands

While Nike’s success with the USWNT jerseys highlights its strength in the U.S. market, the company, like many of its competitors, has a significant global presence. How are major sports apparel brands approaching international markets?

• Localization strategies: Adapting products and marketing to suit local preferences and cultural norms.
• Strategic partnerships: Collaborating with local athletes, teams, and influencers to increase brand relevance.
• E-commerce expansion: Investing in online platforms to reach consumers in markets where physical retail presence may be limited.
• Emerging market focus: Many brands are targeting rapidly growing markets in Asia, Africa, and South America.
• Global events sponsorship: Leveraging international sporting events to increase brand visibility across multiple markets.

These strategies allow brands to tap into new consumer bases and diversify their revenue streams. What challenges do companies face when expanding globally?

Global expansion comes with its own set of challenges, including navigating different regulatory environments, managing complex supply chains, and competing with established local brands. Companies must also be sensitive to cultural differences and adapt their products and marketing strategies accordingly to succeed in diverse markets.

The Rise of Local Competitors

While global brands like Nike dominate many markets, local competitors are increasingly making their mark in the sports apparel industry. How are these local brands competing with multinational corporations?

• Leveraging local knowledge: Understanding and catering to specific regional preferences and needs.
• Agility: Smaller local brands can often respond more quickly to market trends and consumer demands.
• National pride: Some consumers prefer to support domestic brands, giving local companies an edge in certain markets.
• Niche focus: Many local brands succeed by targeting specific sports or consumer segments that larger brands might overlook.

The success of these local competitors is reshaping the global sports apparel landscape, forcing multinational corporations to rethink their strategies and adapt to local market conditions.

As the sports apparel industry continues to evolve, driven by factors such as technological innovation, sustainability concerns, and changing consumer preferences, brands must remain agile and responsive to maintain their competitive edge. The success of products like the USWNT jerseys demonstrates the potential for significant growth when brands effectively align with consumer interests and values. Whether through custom team uniforms, high-performance athletic wear, or iconic professional jerseys, the sports apparel industry continues to play a crucial role in shaping athletic culture and consumer fashion trends worldwide.

• Nike’s North American revenue, by segment 2021

This timeline presents Nike’s North American revenue from 2009 to 2021, by segment. Nike’s North American revenue from footwear amounted to about 11.64 billion U.S. dollars in 2021.

Nike and Athletic Apparel

Sports and fitness clothing is highly fragmented, with many brands competing, from basic discount brands to high-end fashion names. Even well-established brands have to work hard to maintain their share of the market. Consumers are demanding more versatile wear with wider functionality, which means retailers continue producing new styles of sports apparel for men and women.

Nike, Inc. is a sportswear and equipment supplier based in the United States that was founded in January 1964. The company’s headquarters are located near Beaverton, Oregon. Nike is the world’s leading supplier of athletic shoes and apparel and a major manufacturer of sports equipment.

US-based Nike is the world leader in athletic footwear and apparel. The company, which is traded as NKE on the New York Stock Exchange (NYSE), has acquired several footwear and apparel companies over its history such as Cole Haan, Bauer Hockey, Converse, Hurley International, Starter and Umbro. The Nike swoosh is one of the most recognized logos, as well as one of the most reputable athletic sponsors in the world. Nike employed over 73,000 people and operated more than 1,000 retail stores worldwide in 2021. Much of Nike’s success can be attributed to the brands worldwide marketing campaign which uses sponsorship agreements with celebrity athletes, professional sports teams and college athletic programs to use their products for the promotion of their technology and design.

Over the years, the sporting goods industry has seen many mergers and acquisitions. Other key players in the industry include Reebok, Adidas, Puma, and Under Armour. Some of these companies are joining up with fashion designers to produce new clothing styles and widen their product lines. As a result, consumption will continue to be driven by a trend toward less formal dress in the workplace and demand from specific demographics such as teenagers and baby boomers.

Jersey sales soaring for USWNT, setting records

Sales of the USWNT jersey have outpaced all other U.S. soccer jerseys, including those of the men’s team, according to statistics from Nike and Fanatics, two of the official licensed sellers.

Nike said in its earnings report that the women’s 2019 stadium home jersey is now the No. 1-selling soccer jersey, men’s or women’s, ever sold on Nike.com in one season. Fanatics said this is the top-selling U.S. Soccer national team, men’s or women’s, of all time, with sales more than 500% greater this year vs. the same period (through the semifinals) in 2015.

The U.S. women beat England 2-1 on Tuesday to reach the finals of the Women’s World Cup for a third straight time. The team also has sparked reaction and engagement all over social media.

“It’s hard to overstate how important this year has been to the evolution of the women’s offense at Nike,” president and CEO Mark Parker said on the earnings call. “The business grew double digits in fiscal ’19, accelerating in the back half of the year. Our momentum in women’s [sports] is a great example of how our renewed focus is really moving the needle through thoughtful design, powerful brand messages and digitally led distribution.”

The success of the United States women’s national team has helped drive business for Nike even past the jersey, which retails for $90. Parker said the energy around the World Cup, with nearly two-thirds of the teams wearing Nike kits and half the players wearing Nike boots, has pushed the company to the No. 1 position in market share for bras this quarter in North America for the first time in the company’s history.

That statistic is impressive given the exposure Nike gained in 1999, when Brandi Chastain scored the winning goal against China in a shootout and tore off her jersey, revealing her sports bra — and leading to one of the most iconic photos in women’s soccer history.

Now that the Americans have a shot at winning the World Cup, the numbers could go even higher for Nike.

“For me, personally, the groundswell of support around the world for the athletes and teams has been truly inspiring,” Parker said.

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Create unique experiences for everyone in your organization – regardless of their role. Coupons sent directly and anonymously through the platform allow ALL kids to have their apparel shipped directly to their homes.

Your logos, your fonts – No more templates

Controlling your brand means using your colors, your fonts, with the logos that you designed. At SquadLocker, we won’t ask you to compromise. We’ll support your brand with our in-house art services team by providing custom brand guidelines and unlimited iterations of your logos. Free of charge.

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How to Become One of Nike’s Athletes!

04 Jun Nike Athletes: A Guide to Sponsorships & Endorsements

Nike, the sports brand giant, while commonly known for its great sportswear and sneakers, is also well-known for its endorsements and sponsorships. From collaborating with NBA legend Michael Jordan to working with golf legend Tiger Woods down to sponsoring great NFL players, a Nike sponsorship is a dream for any athlete — regardless of their sport.  

But ultimately, becoming one of the great Nike endorsed athletes people look up to is no easy feat. Despite this, athletes shouldn’t feel discouraged from getting the sportswear brand’s lucrative sponsorships. 

If you want to become one of Nike’s sponsored athletes and want to learn how you can gain endorsements later on, here’s your comprehensive guide! 

But before we go into the details of sealing a deal with Nike, let’s first discuss the brand’s history with sponsorships and endorsements. 

Nike, Sponsorships And Endorsements

Early on its career, Nike was considered an up-and-coming sports brand with a rather quirky looking logo. Things didn’t really change until the brand signed a deal with NBA legend Michael Jordan in 1984 and the Jordan brand was born! 

The apparel line known for its signature shoes that carried the now well-loved “Jumpman” logo right after the player was contracted with Nike. Later on, the Jordan shoes became one of the sports brand’s best-sellers, bringing around $2.2 billion annually! Even now, despite being retired, Jordan still rakes in $100 million per year for the brand. 

After that, Nike’s great sponsorships just came flooding in. The brand started making multi-million deals with athletes in the world like Tiger Woods and Joey Barton. While some of them fell through due to controversies, the brand was able to strike what would be their second greatest deal after Jordan, LeBron James. 

But as the market became saturated, the brand started to feel an increasing pressure from its competitors Under Armour and Adidas. Both brands were growing significantly and Nike wanted to make sure it kept its spot.

With that in mind, the brand decided to spend more than $9 billion on sponsorships and endorsements in 2016 — double from its $4.7 billion spending in 2014. As a result, the value of the brand’s sponsorships and endorsements increased by more than 50%.  

Today, athletes would need solid strategies just to be considered by the sports brand giant. 

How to Get Sponsored By Nike

If you look up Nike sponsorships on Google, you’re likely to come across a page from the brand’s official site saying that they don’t accept unsolicited requests, explaining that they are the ones who usually reach out to athletes.

As we mentioned earlier, young professional players who want to catch the attention of the sportswear giant would need a solid marketing strategy. Here are some of the important things you need to keep in mind to be signed a lifetime deal by Nike! 

Understand What Nike’s Sponsorships Are Really For

Ultimately, the purpose of the brand’s sponsorship scheme is to sell more products. Nike likes approaching athletes who are not only doing extremely well in their respective games but also has a great following. They want professional players who are passionate about their sport, someone that people can look up to.  

But aside from increasing sales, Nike also uses its sponsorship scheme to boost its brand image and increase credibility. While the brand has ultimately gained the trust of consumers, the market is becoming more competitive as years go by. Nike wants people to know that while brands may come and go, they remain to be the most trusted brand by great athletes! 

Build An Audience

Because of the increasingly competitive market and the growing number of digital marketing strategies available today, Nike wants to ensure they’re getting their money’s worth by signing someone who has carved an audience for themselves. As we’ve mentioned earlier while a player’s performance matters, the following he or she has play a crucial role as well. 

Luckily, professional athletes now have the power of the internet and social media to help them cultivate a great following! Start by creating your social media accounts if you are yet to create one for yourself. Afterwards, you can start working on a social media management campaign that allows you to gain engaged followers.  

A point often overlooked when it comes to cultivating a following is the importance of engagement. As a sponsored athlete, you must be able to entice your followers to purchase from your sponsor. That’s why you must also spend ample amounts of time learning how you can convert your followers into purchasing consumers. 

Leveraging Social Media for Endorsements

The great thing about having an engaged following is it opens an athlete’s doors to endorsements! Just take a look at what happened to Michael Jordan. 

Driving insane amounts of sales to the brand, Jordan started making money off the court! Endorsements is one of the several ways professional players can gain profit during off-seasons and if you show great ROIs, brands won’t think twice about offering you endorsement deals in the future! 

Get Your Head in The Game

Ultimately, great focus on your performance is needed for you to truly get Nike’s attention. But admittedly, juggling one’s personal brand and winning games is not easy.

Luckily, there are great sports digital marketing companies like Creatitive more than willing to help you land that golden deal! Once you collaborate with their team, you can rest easy and focus all of your energy in winning your games. Their marketing experts will help you cultivate a great following on social media and develop a solid online presence! 

Admittedly, the answer to getting a Nike sponsorship lies in having passion for sports and creating a community wherein you can share that same love with a loyal following!

Nike Reports All-Time High $10.7 Billion Revenue

Nike’s fiscal first quarter earnings have topped analyst expectations once again. The company reports a $10.7 billion revenue, topping the expected $10.44 billion thanks to product innovation and online sales.

According to CNBC, following the news, Nike’s shares rose more than 5.5 percent, a new record high for the brand. Its revenue is up by a total of 7.2 percent, growing from $9. 95 billion a year ago to $10.66 billion. The brand’s net income also welcomed massive growth in this year’s first quarter, rising by 25 percent to $1.4 billion, driven by revenue growth and gross margin expansion.

Nike reports quarterly sales and earnings after the market closes. Analysts expect $10.44 billion in quarterly revenue, $0.70 EPS. Nike has beaten expectations 14 of the past 20 quarters on revenue, 19 of the past 20 on earnings. $NKE

— Matthew Kish (@matthewkish) September 24, 2019

The sportswear company is putting the tremendous growth down to the brand’s investments to sell more sneakers and apparel in its stores and online, which are now paying off. “Our targeted strategic investments are accelerating Nike’s digital transformation and extending our competitive advantage,” explained Andy Campion, Executive Vice President and Chief Financial Officer at Nike.

Nike CEO Mark Parker said that product innovation, like Nike’s new Joyride running shoe, and stronger e-commerce, helped boost results.  “Our strong start to FY20 highlighted the depth and balance of NIKE’s complete offense,” he said. “Nike’s strong product innovation, combined with our industry-leading digital experiences, continue to deepen our consumer relationships around the world.”

The company also sites full price sales, the expansion of its women’s business, and brand ambassadors such as tennis champion Serena Williams as other key factors in its fiscal growth. Converse is also up by a significant eight percent, resulting in a $555 million revenue.

Nike recently teased a collaboration with Lebron James.

For a bigger scoop of Nike, watch below.

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90,000 Adidas surpasses Nike in the number of sponsored teams participating in the 2018 World Cup

By Reuters Staff, Reuters

Adidas boots ahead of the company’s press conference in Herzogenaurach on June 24, 2014. REUTERS / Michaela Rehle / Files

BERLIN (Reuters) – Adidas may declare victory over longtime rival Nike in the upcoming FIFA World Cup ahead of the tournament as it supplies most of the teams competing in the World Cup.

However, the German apparel maker, which is also the official sponsor of the tournament, expects only a limited impact on its financial results from the World Cup, in part due to the fact that the world championship will be held in Russia, which is facing a weakening economy.

“The World Cup in Russia does carry lower financial opportunities than a similar event in Brazil four years ago,” Adidas CEO Kasper Rorsted said earlier in May.

Since the previous World Cup in 2014, Adidas has been rapidly increasing sales in other segments, but football remains important to the image of the German brand, which has been supplying the official World Cup ball since 1970 and will sponsor the tournament under the current contract until 2030.

Nike overtook Adidas for the first time in 2014 by contracting equipment for more World Cup teams, but this year Adidas took revenge by sponsoring 12 of the 32 teams in the tournament, including teams from Germany, Spain and Russia.

Nike will dress 10 teams, including Brazil, France and England.

“The World Championship is such a highlight in the sport and we look forward to increasing its energy,” Nike CEO Mark Parker said in March.

At the same time, contracts are more important for the sale of boots, not with national teams, but with leading players, such as Portuguese-sponsored Cristiano Ronaldo, who is sponsored by Nike, and Argentinean Lionel Messi, who has a contract with Adidas.

Nike estimates that 60 percent of all players going to the World Cup in Russia will wear the boots produced by the company, including almost half of the teams in Germany and Spain and three quarters of Russian players, who will wear Adidas shirts.

Emma Thomasson. Translated by Marina Bobrova

Nike can beat the football giant Adidas at the World Cup

(Repeat. The third paragraph is given in a refined wording – “The eighth team – Uruguay – sponsored by Puma SE”.)

Nike Inc may defeat football giant and its arch rival Adidas AG in the battle for national team sponsorship in a World Cup rife with unexpected defeats.

Nike logo adorns the kits of Brazil, France and England – favorites of the World Cup quarterfinals among bookmakers, as well as Croatia.

German sports brand Adidas sponsors Belgium, Russia and Sweden in the quarterfinals. The eighth team – Uruguay – is sponsored by Puma SE.

The overall achievements of Nike-sponsored teams in Russia symbolize great success for the American sportswear manufacturer as the company strives to increase football-related global sales. In the current fiscal year, they exceeded $ 2 billion.

Sports brands typically sell most of the fan merchandise ahead of the FIFA World Cup, but team successes on the pitch may generate additional demand for badge and flower-adorned prefabs, especially if victories are unexpected.

For the first time, Nike equipped more teams than Adidas at the 2014 FIFA World Cup Brazil. Adidas fought back this year by sponsoring 12 of the 32 participating teams.

Nike supplied this kit for 10 countries.

However, the championship took a disastrous turn for Adidas last Wednesday, when the 2014 champion, Germany, unexpectedly dropped out of the world championship. Team sponsor Adidas was down 2.7 percent the day after the defeat.

Germany accounted for a third of the German national team’s 9 million T-shirts sold by Adidas in 2014, wrote Wedbush analyst Christopher Sweetsia. Ten percent of this volume was sold thanks to the German victory.

Adidas sponsored Argentina and Spain were eliminated from the championship over the weekend. Mexico lost to Nike-sponsored Brazil on Monday.

In addition to the production of jerseys for national teams, sponsorship of individual footballers is vital to the promotion of athletic footwear.Prior to the championship, Nike assumed that 60 percent of players traveling to Russia would wear boots it produced.

Nike shares are up 3 percent since the start of the championship on strong quarterly report and sales forecast released last Thursday. Adidas shares lost about 5 percent.

World Cup 2018: how Messi and Ronaldo’s departure hits Adidas and Nike

• Fernando Duarte
• BBC

July 2, 2018

Photo author, Getty Images

Photo caption,

Messi – one of the main superstars Adidas

The directors of sponsoring companies tend to be more reserved than football fans.But on June 29, some of them must have lost their composure after all, when two superstars – Lionel Messi and Cristiano Ronaldo – were knocked out of the World Cup after the defeat of the national teams of Argentina and Portugal.

Both of these players are multiple holders of the Ballon d’Or, the annual award for the best footballer in Europe. They are not only among the highest paid athletes in the world, but also receive considerable income from sponsorship deals.

And in the world of sports, it’s hard to imagine a more valuable sponsor than Adidas and Nike.

For these major sporting goods manufacturers, the World Cup is not only about the ability to sell their products.

This is also a great reason to promote the brand, and this requires the successful performance of the players and teams with which sponsorship agreements have been concluded.

Photo Credit, Getty Images

Photo Caption,

Every World Cup Becomes Brand Sponsorship Race

“Both Adidas and Nike are choosing to sponsor teams and players that can win the tournament to promote their brand.They want their brand to be associated with success, so that the company remains visible and grows, “says São Paulo marketing consultant Amir Somozh.

Messi and Ronaldo are key players for national team sponsors Adidas and Nike. Argentina and Portugal

Huge Profit

In 2014, Adidas reported that it had $ 2.5 billion in soccer apparel and merchandise sales, not least due to the Brazilian FIFA World Cup.In the same year, Nike reported that net profit increased by 23% during the championship.

At the World Cup in Brazil, Nike surpassed Adidas for the first time in the so-called brand sponsorship race. Of the 32 national teams that took part in the tournament, 12 entered the field in the form with the Nike logo, and with Adidas – only 10.

Ultimately, the advantage was on the side of the German company Adidas, the official partner of the Brazilian World Cup. In this capacity, the firm was responsible for soccer balls and official merchandise.

The national teams of Argentina and Germany, sponsored by Adidas, made their way to the final of the tournament. It was the third adidas-sponsored team win since 1998.

Nike has only one World Cup win so far – with Brazil in 2002.

Billion contract Ronald y

At the World Cup in Russia, the situation has changed again, and under the wing of Adidas again there are more teams (12) than Nike (10).

But if you count individual players, the advantage is on the side of the American company: about 60% of football players play in Nike boots.

Photo author, Getty Images

Photo caption,

Ronaldo’s contract with Nike is estimated at $ 1 billion

According to a study by the CIES Football Observatory, of the 200 most valuable players who came to Russia, 132 play in Nike shoes, while adidas sneakers – at 59 footballers.

Among those who play for Nike is Cristiano Ronaldo, who has a lifetime contract with the company valued at $ 1 billion.

The logo on the national team jersey is not cheap for companies.Nike reportedly pays $ 50 million annually to the French football federation for a contract expiring in 2026, and tens of millions more to the federations of England and Brazil.

The German Football Federation receives $ 58 million a year from Adidas, Spain $ 47 million and Argentina $ 11 million.

Germany Kick Off

Germany’s retirement from the group stage didn’t please Adidas, but the overall skyrocketing sales of German jerseys will probably be some consolation for the company.

Photo author, Getty Images

Photo caption,

132 of the strongest football players at the World Cup in Russia wear Nike boots

During the 2002 World Cup, 8.6 million German national team jerseys were sold, and in 2014 this figure increased by almost twice – to 14.2 million. The average cost of a T-shirt is $ 66, according to the German PR Marketing agency.

Sponsorship contracts with national teams govern the uniform of the team, and personal contracts govern the footwear of the player. Therefore, not all players on a team wear boots of the same color.

Shoes

In the final stage of the World Cup, which included 16 teams, the ratio between Adidas and Nike was almost the same.

The national teams of Brazil, Croatia, England, France and Portugal play in Nike jerseys. In T-shirts Adidas – Argentina, Belgium, Colombia, Japan, Mexico, Russia, Spain and Sweden.

Photo author, PA

Photo caption,

Nike is the sponsor of England captain Harry Kane

The German company Puma, founded, like Adidas, by the Dassler family, sponsored the national teams of Uruguay and Switzerland.The Danish national team is sponsored by the local company Hummel.

When it comes to football stars, Nike is pinning its hopes on Brazilian Neymar, Englishman Harry Kane and Frenchman Kylian Mbappé.

Many adidas sponsored stars have failed to qualify for the group stage. Among them are the German Mesut Ozil and the Egyptian Mohammed Salah.

However, some eminent wards of the German company made it to the final stage, among them – the Frenchman Paul Pogba, the Uruguayan Luis Suarez and the Brazilian Gabriel Jesus.

So while the two superstars – Messi and Ronaldo – have headed home, the sponsorship brand championship continues.

90 000 40 Most Valuable Brands in Sports – 2019. Forbes Ranking

Brands, like the athletes who advertise them, can make a triumphant return – or quickly annoy the public. The brand value of a sports team is influenced by the actions of managers and players. Sports events may or may not be popular. All of this is reflected in our assessment of brands.

The clearest example: Six years ago, Puma’s profits were falling while its competitors Nike and Adidas were reporting large revenues. Puma has an incredible comeback plan that includes a collaboration with singer Rihanna and sprinter Usain Bolt. Puma shares are up 74% over the past year, while Adidas shares are up 46% and Nike shares are up 25%. Is it impressive? Puma has a price / earnings ratio of 46, making Nike (35) and Adidas (30) look cheap.

This year, for the first time, Puma is included in the Fab 40 ranking and is ranked sixth in the “Companies” category.Her brand – that is, just one name – is valued at $ 4 billion.

Downside? Take a look at Under Armor, whose brand is worth $ 3.5 billion – 36% less than three years ago. Under Armor is losing market share to brands like Puma and New Balance. There is growing concern within the company that consumers perceive Under Armor solely as a “gym wear” brand that sells sweatproof T-shirts and shorts, CNBC reports. Since the end of July, the company’s shares have fallen from $ 24 to $ 18.

In addition to Puma, this year’s newcomer to the Fab 40 ranking is Gatorade (the manufacturer accounts for 77% of the sports drinks market and we decided it could be considered a sports brand). In addition, the Kentucky Derby (last in the Fab 40 in 2013), Conor McGregor and the Los Angeles Dodgers (Fab 40 in 2016) returned to the rankings.

MLBAM (sold the BamTech brand to Walt Disney), NESN (lost in value to Gatorade and Puma), Usain Bolt (retired) and Manchester United (supplanted by the New England Patriots and Barcelona) left the list.

Companies

Budrul Chukrut / SOPA Images / LightRocket via Getty Images

1. Nike, $ 36.8 billion

Nike stock has outperformed Adidas by more than two to one and Under Armor in the past two years – more than four to one.

2. ESPN, $ 13.1 billion

ESPN’s operating income exceeds $ 3 billion thanks to monthly membership fees of $ 8 – more than any other sports network.

3.Adidas, $ 11.2 billion

In April, Beyoncé and Adidas announced a joint project in which the artist will develop branded clothing and shoes for the brand.

4. Gatorade, $ 6.7 billion

Gatorade has 77% of the American sports drinks market, while its closest competitor Powerade has only 15%.

5. Sky Sports, $ 4.4 billion

In 2018-2019, the audience of the Sky Sports Premier League TV channel in the UK grew by 12%.

6. Puma, $ 4 billion

In the first nine months of 2019, Puma shares rose 60% to $ 79.

7. Under Armor, $ 3.5 billion

Over the past two years, Under Armor’s operating income (income excluding interest, taxes, depreciation and amortization) has declined 72% to $ 157 million

8. UFC , $ 2.4 billion

Earlier this year, the UFC and Disney signed a seven-year contract that earns the UFC a commission on paid broadcasts on ESPN +.

9. YES, $ 1.5 billion

In September, a consortium of investors led by the owner of the New York Yankees bought YES Network from Disney for $ 3.47 billion.

10. Reebok, $ 800 million

Reebok’s sales were down 3% in 2018, but the company is still profitable again.

Sports Events

Okan Özer / Anadolu Agency / Getty Images

1. Super Bowl, $ 780 million

Kantar Media estimates that CBS received $ 382 million in ad revenue during the last Super Bowl.A year earlier, NBC earned $ 408 million from the decisive game.

2. Summer Olympics, $ 375 million

NBC raised $ 1.2 billion in advertising sales in America during the 2016 Games in Rio de Janeiro – slightly less. than at previous Summer Games in London.

3. Final Round NCAA Division 1 Men’s Basketball Tournament, $ 300 million

According to Kantar Media, TV advertising revenue during the March Madness ranged from $ 1.3 billion to $ 1.6 billion.

4. FIFA World Cup, $ 282 million

About 2.49 million people watched at least 30 minutes of broadcasts of the 2018 World Cup in Russia – a 27.7% increase over the previous World Cup in Brazil.

5. National College Football Championship , $ 255 million

In 2014, ESPN began paying $ 470 million annually for the right to broadcast the College Playoffs under a contract that runs until 2025.

6. WrestleMania, $ 245 million

This year, WrestleMania at Metlife Stadium earned $ 16.9 million, second only to $ 17.3 million at WrestleMania three years ago.

7. UEFA Champions League, $ 168 million

Revenues from broadcast rights and sponsorship contracts for the Champions League and Europa League are expected to average $ 3.52 billion in a single season from 2018 to 2021.

8. Kentucky Derby, $ 155 million

In 2018, the Churchill Downs Racetrack underwent a $ 37 million renovation, adding more than 1,800 seats in 32 new boxes and a third floor grandstand.

9. Winter Olympics, $ 150 million

The 2018 Games became the largest Winter Olympics in terms of social media hype – official content attracted 300 million users and videos received over 1.6 billion views.

10. Major League Baseball World Series, $ 122 million

The average cost to run a 30-second ad during the 2018 World Series match between the Boston Red Sox and the Los Angeles Dodgers was about $ 500,000 – almost the same amount as at the Fall Classic a year earlier.

Athletes

Zhe Ji / Getty Images

1. Roger Federer, $ 62 million

Federer’s $ 86 million off court revenue thanks to partners like Credit Suisse, Mercedes-Benz and Rolex is almost 60% higher than the total revenue of any other athlete.

2. Tiger Woods, $ 33 million

Since starting his professional career in 1996, Woods has received $ 1.4 billion from sponsors

3. Cristiano Ronaldo, $ 29 million

24 hours after the start of sales of the branded T-shirt Ronaldo with the Juventus logo has sold 520,000 copies worth over $ 60 million.

4. LeBron James, $ 28 million 90,072

In 2018, James teamed up with Cindy Crawford, Arnold Schwarzenegger and Lindsay Vonn to launch the supplement manufacturer Ladder.

5. Lionel Messi, $ 20 million

Messi signed a lifetime contract with Adidas, under which he is expected to receive more than $ 12 million annually.

6. Stephen Curry, $ 17M

In 2017, Curry founded a new company SC30 to manage his investments, brand contracts and philanthropic projects.

7. Neymar, $ 15 million

Neymar is the second most popular sportsman on social networks: he has over 200 million followers on Facebook, Instagram and Twitter.

7. Phil Mickelson, $ 15 million

Mickelson’s sponsorship contracts over his entire career brought him about $ 700 million. which is presented to the best cricketer of the year, as well as the ODI and Best Test Player of the Year awards.

10. Conor McGregor, $ 12 million

Before returning to UFC 229, the Irishman renewed his sponsorship deal with Reebok, which brings him about $ 5 million a year.

Sports Teams

Legan P. Mace / SOPA Images / LightRocket via Getty Images

1. Dallas Cowboys, $ 1.039 billion

club level) more than any other NFL team.

2. New York Yankees, $ 815 million

The Yankees earn $ 100 million more than any other Major League Baseball team.

3. Real Madrid, $ 725 million

Earlier this year, Real Madrid signed an agreement with Adidas to extend the contract for an eight-year period until June 2028. Under the terms of the agreement, the team receives a record $ 113 million a year, as well as 20% of sales of the team’s souvenirs.

4. Los Angeles Lakers, $ 674 million

The Lakers make $ 150 million a year from contracts with local television and radio stations.

5. Golden State Warriors, $ 606 million

The contract, under which the Warriors receive $ 20 million a year for the placement of Rakuten patches on jerseys, was the best agreement of any NBA team.

6. New York Knicks, $ 563 million

The Knicks earned nearly $ 60 million in stadium seat sales for the 2017-2018 season – more than any other NBA club.

7. Los Angeles Dodgers, $ 554 million

In 2018, the Dodgers earned $ 170 million selling broadcast rights to local TV channels – more than anyone in Major League Baseball.

8. Boston Red Sox, $ 532 million

In 2018, more people attended concerts at Fenway Park, home of the Boston Red Sox, than at any other baseball stadium.

9. Chicago Cubs, $ 518 million

In 2020, the club and Sinclair Broadcast Group will launch the Marquee Sports Network, which will receive the exclusive right to broadcast Cubs matches.

10. New England Patriots, $ 465 million

In February, the Patriots beat the Los Angeles Rams 13-3 at the Super Bowl to secure the title for the sixth time out of ten that the team made it to final of the NFL championship.

10. Barcelona, ​​$ 465 million

In 2018, Barcelona signed a sponsorship contract for the placement of the logo on athletes’ shirts with Turkish electronics manufacturer Beko. The three-year contract is worth $ 63 million.

How We Calculate

In the Forbes Fab 40 ranking, we calculate the value of leading sports brands by evaluating the contribution of a name or title to the value of an athlete, sporting event, company or team.

• Company brand values ​​are calculated as the difference between the value of the business under study and the average capitalization of comparable companies.
• Event Brands Value is the average daily revenue from media, sponsorships, ticket sales, and licensed merchandise.
• The value of an athlete’s brands is their income (minus salaries and bonuses in their sports discipline, as well as income from investments) minus the average income of the top ten athletes in the same sport.
• For team brands, it is estimated how much of a team’s value is unrelated to a team’s audience size, venue, or league-wide revenue.

The previous nine issues of Forbes Fab 40 can be found here.

Translated by Natalia Balabantseva

Nike won the 2018 World Cup among sports brands :: Business :: RBK

The World Cup has another winner – Nike, which won an informal competition between sports brands.RBC found out in whose boots the most goals were scored and how brands work with the main football event

Main Sports

The history of cooperation between Adidas and FIFA began in 1970, when the company began supplying the organization with official balls for the World Cup.Prior to this, the panels of the ball used during games were rounded and did not fold into an even ball. For the first time, Adidas launched a ball made of black pentagons and white hexagons. Named after Telstar’s first private satellite, it had an almost perfect spherical shape. And it was also better seen on the black and white TV screen. The company has modified its technology over the years; especially famous were the Tango, the first such product made of leather and polyurethane, and Azteca, the first fully synthetic ball.At the last World Cup, Adidas introduced the Telstar 18 ball, named after its first predecessor.

Adidas received the status of an official sponsor in 1998 at the championship in France. Since then, the company has not missed a single tournament. Adidas last extended its contract with FIFA in 2013 until 2030. “We are delighted and proud that our warm relationship with FIFA does not end,” said Herbert Heiner, who served as the group’s chief executive at the time.

The terms of sponsorship include not only the supply of balls, but also a uniform for volunteers. FIFA, in turn, grants Adidas the right to sell licensed products with joint symbols.

Adidas does not provide uniforms for national teams as part of a partnership with FIFA, but as a sponsor of individual teams or footballers. The company wore the most teams at the World Championships in Russia – 12 out of 32, including the Russian national team.

Especially for the duration of the championship in Russia, the company opened 140 pop-up stores.“In the first three days of the World Cup, sales were record-breaking. For example, the sale of one of the Moscow stores for 10 thousand square meters. m on the day of the opening match four times exceeded our expectations, ”said Adidas CEO Kasper Rorsted.

Read on RBK Pro

The company does not disclose the total costs of marketing activities at the championship. But only on the sponsorship of the native German team, Adidas spends € 50 million a year. Moreover, the direct financial benefit from participation is limited, the company said in a report.The Russian championship will provide the group with less income than the Brazilian one four years ago, Rorsted predicted before the championship began.

Final by Nike

Only ten teams played with Nike’s main rival, Adidas. However, Nike is clearly in the lead in terms of the number of footballers represented in the World Cup. 60% of the total number of players participated in the tournament wearing shoes from this company. Four years ago in Brazil the situation was similar, but the advantage was not so overwhelming (383 players chose Nike, 265 – Adidas).Nike’s quantitative leadership in Russia was also reflected in quality: the footballers playing at Nike scored more than 100 goals – more than all the others combined.

Nike does not have the same licensing rights as Adidas: it is not an official partner of the championship. But despite this, it was already clear in the semifinals that the final match would most likely be played by teams sponsored by Nike. The fact is that the list of partners of the company includes the national teams of Croatia, England, and France.

Nike and Adidas sponsor individual athletes. Nike’s mentees include Brazil striker Neymar and Cristiano Ronaldo, who signed a lifetime contract with the company. The most effective Nike footballer at the World Cup was the Englishman Harry Kane. The most famous adidas partner is Lionel Messi.

The elimination game: how the richest football players in the world dropped out from the 2018 World Cup

Football shoes

To determine how often footballers playing in a particular brand of footwear hit the opponent’s goal, RBC calculated the so-called goal index.This is the ratio of the number of goals scored in the tournament, scored in the boots of each football brand, to the total number of players that represent that brand. Asics is the leader in this indicator: at the championship it was represented by two footballers of the Japanese national team, who scored three goals.

Adidas became the leader among technical sponsors – manufacturers of uniforms for football teams at the World Cup: 12 teams played in its equipment. Nike lagged behind on this indicator slightly: ten participants of the championship performed in the form of this company.In third place is Puma with four football teams. Teams sponsored by Nike were the most successful at the last tournament, winning 55% of their matches.

The last time the Nike team won the world championship was 16 years ago – in 2002, then it was the Brazilian team.

For the majority of Adidas representatives the last tournament was not very successful. Traditionally strong representatives of the brand could not go far: the German national team did not even leave the group, and the teams of Spain and Argentina were eliminated in the 1/8 finals.The Belgian national team saved the situation, which managed to get to the bronze medals.

Who else

With a large gap behind the leaders, the third place in the number of players in the championship was taken by Puma. The company has sponsored only four teams this year – the national teams of Switzerland, Senegal, Uruguay and Serbia. This is half the size of the World Cup in Brazil, when Puma was a full-fledged competitor to Adidas and Nike. Leaders wore 32% and 28% of the total number of teams, respectively, and Puma – 25%.She was unlucky at the championship: one of the company’s partners, the four-time world champion, the Italian national team, did not qualify for the tournament for the first time since 1958.

American New Balance made its debut as a football sponsor in Russia. The company provided the kit to two national teams – Panama and Costa Rica. She first announced that she plans to produce clothes and boots for professional football at all, only in 2015.New Balance got interested in the football market after buying Warrior Sports in 2004, which already supplied kits to some teams, although it never participated in the championship. Warrior Sports’ partners included Liverpool, for example.

Four more manufacturers wore one command at a time. The Danish company Hummel provided the uniform for the native team, the British Umbro for Peru, the German Uhlsport for Tunisia, and the Italian Erreà for Iceland.

Who pays FIFA

FIFA planned to receive about $ 6.1 billion in revenue from the Russian championship – 10% more than for the Brazilian tournament.But it was difficult for the organization to find sponsors before the World Cup in Russia. Difficulties arose when a corruption scandal erupted and Sony and Emirates refused to cooperate. Visa also warned about the possibility of refusal. Last year, FIFA received a loss of $ 192 million.

The corruption scandal in FIFA began in May 2015, when a few days before the election of the head of the organization, the FBI accused several of its high-ranking officials of extortion and fraud.In September of the same year, the Swiss authorities opened a criminal case against the then head of FIFA, Joseph Blatter. According to them, in 2011, he made an illegal payment, transferring the head of UEFA and Vice President of FIFA Michel Platini 2 million Swiss francs. At the end of December, Blatter and Platini were suspended from football activities for eight years, but this period was shortened in 2017.

Championship sponsors are divided into three categories. These are the official partners of FIFA – Adidas, Coca-Cola, Wanda Group, Gazprom, Hyundai Motor Group, Quatar Airways and Visa, sponsors of only the championship itself – Bud, Hisense, McDonald’s, Mengniu, Vivo.And this year, for the first time, FIFA also attracted regional sponsors – Alfa-Bank, ALROSA, Rostelecom and Russian Railways.

Closing ceremony of the FIFA World Cup in Russia. Photo report

90,000 Who will win the 2014 World Cup: Adidas, Nike or Puma? | Economy in Germany and the World: News and Analytics | DW

The FIFA World Cups are the largest sports and media events on the planet, surpassing even the Olympics in scale.Not surprisingly, a wide variety of globally operating companies are trying to use them for their marketing purposes. At the same time, manufacturers of sportswear and footwear attach particular importance to football championships. For them, such tournaments represent an ideal opportunity not only for image advertising and brand promotion, but also for direct stimulation of sales of T-shirts, boots, balls all over the world.

Nike equips the Brazilian national team, Adidas equips the Spanish team

For maximum marketing effect, it is, of course, necessary to pre-dress and shoe the most promising teams in their products.The world’s largest manufacturer of sports equipment, the American company Nike, equips the national teams of 10 countries at the current championship. This is, first of all, Brazil – the host of the championship and one of the most real favorites for the championship title, which naturally provides Brazilian players with increased attention.

Portuguese Cristiano Ronaldo (left) at the 2014 World Cup will wear Nike uniform, while Argentine Lionel Messi will be outfitted with Adidas. When they, as in this picture, play for their clubs, Real Madrid and Barcelona, ​​it is exactly the opposite.

Along with Brazilians, Nike World Cup T-shirts are worn by players from England, Holland and the USA. The German concern Adidas, the second largest representative of the industry, has equipped 9 national teams, including the German, Argentine, Russian and Spanish, which will have to defend the championship title. In addition, Adidas is the official sponsor and partner of the International Football Federation FIFA. Therefore, the German concern once again supplies the official ball of the tournament, as well as dresses and shoes for the referees, the boys who serve the balls, and the volunteers.

The German company Puma, controlled by a French investor, ranks third in the industry, although it is significantly inferior in size to its two main competitors. Nevertheless, she equips 8 national teams at the current championship, among which, for example, the Italian one. However, the main “wards” of Puma are teams from African countries.

The need to “fight back”

Company spokesman Ulf Santjer explains this with “historical reasons”: “For 15 years we have been active on the African continent and equip a total of 10 teams there.”Of these, the national teams of Algeria, Ghana and Cote d’Ivoire qualified for the 2014 World Cup final in Brazil. “Their T-shirts are immediately eye-catching because they are country specific,” says Ulf Sagnier. Thus, elephants are visible on the uniform of the Ivorian footballers.

The official ball of the 2014 World Cup Brazuca is produced by the Adidas concern

Exactly how much the manufacturers of sportswear and footwear spent in connection with the 2014 World Cup on marketing, sponsorship and advertising remains a secret. Only the head of Adidas, Herbert Hainer, once mentioned several tens of millions of euros.It is impossible to say whether this investment will pay off, said Professor Markus Voeth, a marketing specialist at the University of Hohenheim, in an interview with DW. Much, he believes, is being done only to “rebuff competitors.”

So, Nike has recently begun to noticeably crowd out Adidas in the football field, in which the German concern has been unconditionally in the lead for many years. “To resist this onslaught, Adidas had no choice but to invest heavily in advertising and marketing at the World Cup in Brazil,” the expert said.

The struggle for buyers is moving to the Internet

At the same time, the expert specified, the bulk of the funds goes to promoting the brand on the Internet. “We’ve practically stopped spending money on print advertising,” Adidas CEO Herbert Heiner recently said. Today, the battle for buyers takes place mainly on TV screens and on platforms such as Facebook, Twitter, Youtube and Instagram.

It seems that in this fight the advantage is still on the side of the Americans.For example, a Nike commercial called Winner Stays has already been viewed on the network about 80 million times. Adidas has a significantly worse indicator – Messi’s Dream has so far received only 31 million views. In addition, the Nike video has been reposted over 1.3 million times by users of social networks, while the German competitor has this figure not exceeding 300 thousand.

Adidas, in turn, delivers an asymmetrical counterstrike with the “Official Championship Ball”. Its name, Brazuca, was chosen in an internet vote in which one million Brazilians participated.The company is proud to announce that Brazuca is “the first ball to have its own Twitter account, where it has been talking about its adventures since December.”

Markus Feth has no doubts that the peak of the current online advertising campaign of sporting goods manufacturers is still ahead: “If you look at the vigorous activity both industry giants have launched on social networks on the eve of the championship, you can imagine what awaits us in the next four weeks during the championship “.

90,000 “This is a wake-up call.”Why football stars are leaving Nike :: Football :: RBK Sport

Over the past year, Nike has ended its partnership with many of the world’s top footballers, including one of the most influential people on the planet.The reasons for the separation and the expected negative consequences for the players – in the material of RBC

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Photo: AP

In 2020 Nike lost one of the leading football stars – Neymar.The Brazilian, after 15 years of cooperation, went to Puma, terminating the contract with the Americans ahead of schedule. With this move, the German company made the challenge dominant for a long time in the football market Adidas and Nike, whose main figures are Argentine Lionel Messi and Portuguese Cristiano Ronaldo, respectively.

Puma hasn’t had an ambassador of this caliber for a long time, as Neymar is the third most popular active athlete after Portuguese Ronaldo and Messi, according to Instagram followers.The Brazilian account has over 150 million subscribers. For example, the eighth person by subscribers is the singer Beyoncé (169 million).

The importance of the Brazilian is also evidenced by the fact that Time included him in the top 100 most influential people on the planet in 2017.

Until 2020, the Brazilian striker was consistently among the five highest paid athletes in the world according to Forbes, and in 2021 he became the sixth with earnings of $ 95 million a year, $ 19 million of which he received from advertising contracts.

In 2021, his income will increase markedly. After all, from Puma alone, Neymar will receive $ 30 million a year. This fee became a record not only for the company, but also among the athletes. Previously, the record was held by Ronaldo, who receives $ 25 million a year from Nike on a lifetime contract.

“Against the traditions of football”. Will the collapse of the Super League scare off US investors?

Mass separation from football players

Neymar is not the first famous footballer to stop working with an American company in the outgoing season.Thiago Alcantara is another Hispanic (Brazilian born in Italy, and plays for the Spanish national team), who left Nike in 2020.

You can put together a good team from footballers who have not renewed their contract with the brand. In addition to Neymar and Alcantara, it would include Rafael Varane, Sergio Ramos, Marco Asensio (all Real Madrid), Leroy Sane and Robert Lewandowski (Bayern Munich), Raheem Sterling (Manchester City), Bakari Sako (Arsenal ). And these are only world famous football players from super clubs. In reality, the list is much longer.

What is the reason for leaving

As reported by The Athletic, citing industry representatives, this marks the beginning of a major restructuring in a market that has long been a source of significant income for many athletes. It is noted that in most cases, cooperation with football players was terminated by Nike’s decision. Cuts in advertising budgets due to the pandemic have forced the company to restrict signing and renewal deals.

McGregor topped the ranking of the highest paid athletes in the world

At the same time, the players’ representatives say that this is not the only problem.Elite footballers, driven by Nike’s relationship with Ronaldo and Killian Mbappa, need more attention.

According to co-founder Phil Knight, COVID-19 hit Nike’s finances with a sledgehammer and warned of industry-wide changes. For example, according to him, analysts predicted profit for the first quarter of 2020 in the region of $ 130 million, as a result, the company suffered losses of $ 790 million. “This is quite a big difference. – quoted by Knight portal Sportbusiness. “It will change the whole face of business.”

Adidas was no exception, its revenue in the first quarter of 2020 fell by 90%. Also, the adjustment of the company’s budget was influenced by the postponement of the European Football Championship and the Tokyo Olympics from 2020 to 2021.

At the same time, a senior source from a rival brand insists that the refusal to renew contracts is less related to the pandemic. According to him, Nike has changed its strategy – the company plans to focus on fewer star athletes and adhere to racial and gender equality.

Types of sponsorship contracts in sports

Traditionally, there are three sponsorship models in the major market players such as Nike, Adidas, Puma, New Balance and Under Armor.

Elite. Designed for superstars. The brand pays the player a large sum, supplies him with the company’s products, while the athletes participate in advertising campaigns. Typically, these deals represent 10-15% of a player’s income at a club.

Such agreements are usually designed for four years so that the company can profit from cooperation during major international tournaments – world and continental championships.

Fees may increase depending on the number of goals, team and individual titles. In the event of a decrease in playing time in a club or national team, sponsorship payments may be reduced. And penalties are provided in case of appearance of other brands in clothes.

Having the same sponsor for a club and a star can play into everyone’s hands. For example, after the acquisition by the French Paris Saint-Germain of Neymar and currently the most expensive footballer according to KPMG, Kilian Mbappe (Nike ambassadors), the American company re-signed the contract with the club, increasing payments threefold.

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Second level. Agreements with less popular footballers, but well-known in their countries. The brand supplies the player with equipment worth several thousand dollars. In response, the athlete participates in advertising campaigns.

Third level. Least popular footballers on the list of ambassadors who receive less equipment than second-tier players and participate in local advertising campaigns. In connection with the pandemic, companies have significantly cut the number of third-level contracts.

How the changes will affect the players

Brands are no longer interested in signing six-figure contracts with defensive players, they want to focus on talented attacking players.

At the same time, the companies refuse contracts with young players. “The market is shrinking,” said one agent, speaking on condition of anonymity. “Brands want the return on investment they know they can get from elite footballers, but is the teenager the driving force behind that? The market was unrealistic and misled.This is a huge wake-up call for families and agents. ”

Unlike Zenit and Spartak. Which club is the most effective

Over the next five years, we will see “a huge shift in the way the sector works,” and for many players this could mean lower revenues, according to an industry expert.

Thus, a major restructuring is envisaged in the sports equipment market. It is likely that player revenues will shrink significantly, and the hegemony of Nike and Adidas in the football market will end. At the same time, a number of experts point out that the reduction in the total number of sponsorship agreements will lead to an increase in the amount of contracts with star players.

.