French soccer genius Kylian Mbappé signs new sponsorship deal with On nike A person familiar with the situation told CNBC that the international superstar’s contract has been chosen not to be renewed.
Early Friday morning, Swiss sportswear company On announced that it had reached an agreement with Mbappe, marking the brand’s first deal in football. The company also announced the appointment of former French star Thierry Henry as director of soccer.
With Mbappé’s contract ending in July, Nike felt it had benefited from the prime years of his career and decided to use the endorsement money elsewhere, said the person, who requested anonymity because the negotiations were private. At 27 years old, he will be 31 when the 2030 World Cup begins.
The move marks another major shift for Nike, which is seeking to rebuild brand loyalty and product innovation under CEO Elliott Hill. The company’s weak sales, particularly its struggles in China, have caused its stock price to fall by about 50% over the past year.
On entered the football world after signing Kylian Mbappe.
on Jurgen Teller |
On the other hand, this is a coup for On, which is expanding further outside of its core running segment.
Mbappé joined the Swoosh in 2006 while still a child and has since emerged as one of the sport’s hottest stars. The Real Madrid star is the all-time top scorer for Paris Saint-Germain, the French national team and the FIFA World Cup, and won the tournament with France in 2018.
Mbappe said in a statement that he was attracted by the opportunity to build something completely new.
“I want to bring my experience and perspective to what we create, push possibilities through innovation and always stay true to the joy of football. We have a common dream and this is just the beginning,” he said.
On said he wanted to bring a “new perspective” to the sport.
“Football doesn’t need another sportswear brand to do the same,” On founder and co-CEO David Alleman said in a statement. “Soccer requires new ideas and the challenge of possibilities.
Over the years, Nike has represented many of the world’s top soccer stars, including Erling Haaland, Vinicius Jr., Alexia Putelas and Sam Kerr.
In a statement, Nike wished Mbappé all the best.
“For nearly 20 years, we have shared moments that shaped the game. He was an integral part of Nike Football,” the company said. “We are proud of what we have achieved together on and off the field and we wish him continued success as he moves on to the next stage of his career.”
In an analyst note assessing On’s ambitions in sports, Jefferies warned that football was one of the most expensive categories to enter and that “credibility in track record simply cannot be bought”.
“We see similarities with (Under Armor’s past partnership with Stephen Curry), a star athlete who was unable to establish his brand as a dominant player in this sport.”
