Adidas pays up to extend deal with German soccer
Adidas shares rise after reports it will continue to provide the outfit for national teams for four years from 2019
Germany’s Thomas Mueller, Lukas Podolski, Jerome Boateng. Under the new agreement, Adidas will continue to provide the outfit for national teams for four years from 2019. Photograph: EPA
Adidas will pay up to €70 million a year to extend its sponsorship deal with the German soccer association.
Adidas currently pays around €25 million a year to supply the world champions but faced competition from US rival Nike for the contract.
The German sportswear company declined to comment on the report which appeared in Sport Bild on Friday.
Adidas climbed 1.8 per cent on Monday after it was reported that the sports company signed a new four-year sponsorship contract for the German soccer team.
Under the new agreement, Adidas will continue to provide the outfit for national teams for four years from 2019, the newspaper said on Friday, citing sources within DFB.
A battle between Adidas and Nike for dominance of the global soccer gear market has driven a steep rise in sponsorship payments to elite clubs.
Adidas said it expects sales of soccer boots, shirts and balls to rise 14 percent to a new record of €2.5 billion in 2016, showing a return for spending more on partnerships with top teams and players.
It expects to sell 1.3 million Germany jerseys this year. That is down from the 3 million shirts it shifted in 2014, when Germany won the World Cup.
Adidas has long been the world’s top soccer brand, but it was overtaken by Nike in the market for boots in 2014, prompting Adidas to lift its marketing spending.
Adidas is kitting out nine of the 24 teams playing at Euro 2016, including reigning champions Spain and Germany.
Nike has six teams, including host France and England, while smaller German brand Puma has five, including Italy.