Nike Inc (NYSE:NKE) will outfit all of Germany's national soccer teams starting in 2027, marking the end of Germany's historic 70-year partnership with Adidas AG (OTC:ADDDF) (OTC:ADDYY).
German Soccer Federation's (DFB) announcement ushers in a new era with an agreement spanning from 2027 to 2034, surprising many by choosing Nike over its traditional ally, Adidas.
Germany's men's team, which will utilize Adidas' headquarters as its base for the upcoming European Championship hosted by Germany this summer, found Adidas caught off guard by the DFB's switch to its primary competitor, AP News reports
Germany's national football teams have historically donned Adidas gear, contributing to their success in securing four World Cup titles between 1954 and 2014.
The association with Adidas was extended for four more years in 2019, ensuring collaboration until the end of 2026.
The decision to switch to Nike was motivated by the substantial financial offer and Nike's vision for promoting amateur sports, women's soccer, and the sustainable development of the sport in Germany.
Adidas acknowledged being informed about the DFB's decision to switch suppliers from 2027 onwards.
This transition comes as Germany, home to the world's largest football association with over seven million members, prepares to host the Euro 2024 tournament from June 14 to July 14, showcasing its prominent role in the global football community.
Adidas faced challenges in 2023, dropping the Yeezy brand after controversial remarks by Kanye West, resulting in a $1.3 billion sales hit. However, the company is making a comeback with better-than-expected third-quarter results and a shift in focus back to sports, led by CEO Bjorn Gulden.
The sports apparel market, valued at around $200 billion annually, anticipates a boost in 2024 with the Euro 2024 football championship and the Paris Olympics.
Nike's stock has gained 11% in the last six months. Investors can gain exposure to the stock via SPDR Select Sector Fund – Consumer Discretionary (NYSE:XLY) and Hennessy Stance ESG ETF (NYSE:STNC).
Price Action: NKE shares traded lower by 7.12% at $93.64 premarket on the last check Friday.
Also Read: These Analysts Cut Their Forecasts On Nike Following Q3 Results
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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