Photo Credit: Adidas
The CEO of the German sportswear giant Bjorn Gulden said in an interview that the sum reportedly paid by Nike to lure the German football team away from its historic partner Adidas was "inexplicable''.
Defending the company's decision not to enter into a bidding war with its fierce US rivals, Gulden said the German sport outfitter would continue to go after major kit deals, including the franchise for France, but only if the price is right. News of the breakup with the German football team came at a bad time for Adidas, which had slumped to its first annual loss in over three decades in 2023.
The German Football Association (DFB) said last month it would end its partnership of over 70 years with Adidas, selecting Nike as its kit provider from 2027.
The DFB said the decision was made in the interests of the domestic game and grassroots football. But the shock announcement, just a few weeks before Germany is set to host the 2024 European football championships, prompted an outcry from politicians who accused the DFB of a lack of patriotism.
"Nike won with, by all accounts, a huge offer," said Gulden, referring to reports that the US giant will pay around 100 million euros ($106.5 million) a year in the deal that runs from 2027 through 2034
"If the numbers are right for what Nike paid the DFB, they are inexplicable for us'' on the back of Adidas's own calculations, the Norwegian CEO said. International football was not everything, Gulden said, lauding the "advertising impact" made by Adidas's partnerships with clubs like Real Madrid and Bayern Munich.
Demand for national kit or federation merchandising is "much lower than it is for clubs", he added. "We try always to invest where one gets the best advertising impact and can make the highest sales, and we'll continue to do that.
In seeking other big kit deals therefore, Adidas will only pay what it deems reasonable, including for France potentially. "We make offers where we are interested at a price that we believe is the right one," he said, underlining that "over that we won't go there." Gulden, who took over the reins of Adidas in 2023, also sketched out a plan to shift Adidas' focus from major disciplines like football to a more comprehensive scope.
For Adidas, 2024 has already witnessed the start of a turnaround after a period marred by struggles. The group raised its revenue and profit outlook for 2024 this week on the back of a better-than-expected first quarter.
Lewis Musonye
