Adidas is outplaying Nike in the World Cup
Rival athleisure titans Adidas and Nike are in competition once again – this time over soccer World Cup shirt sponsorship deals. Each time the event rolls around, Adidas and its much larger rival compete to see who can get the most exposure. This time around, Adidas has come out on top, kitting out 12 teams in contrast to Nike’s 10. However, Adidas CEO Kasper Rorsted isn’t expecting a huge financial windfall from the victory, as this year’s host, Russia, is struggling economically.
Adidas is also beating Nike in the share price performance stakes this year – although both companies are seeing double digit improvements
Source: Yahoo Finance
Rorsted told reporters eager for a comment that: “The World Cup in Russia does carry lower financial opportunities than the similar event four years ago in Brazil. At the same time, we’re looking forward to it. It’s going to be a fantastic way of bringing our brand to life globally.”
Adidas has traditionally been a “football-first” (meaning soccer) brand, although in the last four years, it has grown sales significantly in other areas. In 2014, Nike (which only got into soccer sponsorship in 1994, when the U.S. hosted the World Cup) sponsored more teams than Adidas for the first time ever. This year, Adidas is striking back – and between them, the two companies are sponsoring 22 of the 32 teams competing.
Nike CEO Mark Parker spoke to the attraction of the World Cup in March, saying: “The World Cup is such a powerful moment in sport, and we look forward to amplifying its energy.”
Dominion holds both Nike and Adidas in its Global Trends Luxury Fund.
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