Friday, March 22, 2024

Nike celebrates shock deal with German FA but backlash continues

2024/03/22
The American athletic footwear Nike's logo seen above the entrance to the department store in downtown Hamburg. 
Axel Heimken/dpa

US sportswear giant Nike has celebrated its shock deal with the German Football Federation (DFB), but the backlash in Germany against the decision to ditch an over 70-year partnership with Adidas continued on Friday.

Thursday's announcement from the DFB about a change in Germany kit suppliers from 2027 caught the football world by surprise given the iconic status of Adidas in Germany.

"It was a remarkable team effort and a great proof that when Nike brings out our best, no one can beat us," Nike chief executive John Donahoe said in a conference call with analysts after the presentation of its latest quarterly figures.

"We feel honoured and privileged to partner with the German Football Federation, starting in 2027."

No financial details were given but German business newspaper Handelsblatt, citing industry sources, said Nike will pay the cash-strapped DFB more than €100 million ($108 million) per year between 2027 and 2034. Bild reported that the current Adidas deal is worth €50 million a year.

The Germany men's team have crashed out of the last two World Cups in the group stage and the women's side suffered the same fate last year, hitting DFB revenues.

The Nike head said the firm had demonstrated its ability to turn the German team back into a "global brand" and the footballers into "global heroes." Nike also took over the France and England contracts in 2012 and 2013.

But German politicians are not happy with the DFB's decision.

Vice Chancellor Robert Habeck accused the governing body on Thursday of being unpatriotic while the Bavarian state premier Markus Soeder, whose local side Bayern Munich have a big deal with Bavarian-based Adidas, was aghast on Friday that a 70-year success story was ending.

"It is wrong, a shame and also incomprehensible that this piece of history should end now," the CSU politician wrote on X (formerly Twitter).

"The national team plays in three stripes - that was as clear as the ball being round and a game lasting 90 minutes. German football...is not a pawn in international corporate battles. Commerce is not everything. Despite all the economic challenges, the DFB would have benefitted from more straightforwardness."

German opposition leader Friedrich Merz said: "This is a completely incomprehensible decision for me. And I have to be honest - it's also unpatriotic."

A spokesman for Chancellor Olaf Scholz meanwhile said the decision was the DFB's to make and would not comment further.

But Hesse premier Boris Rhein, whose state is the home of the DFB in Frankfurt, railed: "The three stripes go hand in hand with the four stars we wear on our chest. World champions wear Adidas, not some American fantasy brand.

"That's why I think what the DFB is doing is a huge change. I very much regret it and can't imagine that the DFB will be able to stick to the new deal."

The American athletic footwear Nike's logo seen on the shop 
on 5th Avenue in Manhattan. 
Michael Kappeler/dpa

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