Adidas and Nike, household names that have dominated the sports scene for decades, started with shoes catered to professional athletes and are now huge brands in sports that sponsor the biggest sporting events in the world. Instilling themselves emotionally into people, Adidas and Nike go beyond mere names; they create identities. However, with growth comes competition, and soon enough, the jungle seemed a bit small for the two titans. Snatching away deals, battling for the next Jordans and Messis, the conflict was destined to come. The tension between them is a tale as old as time. However, recently, things have escalated.

Born, bred, and raised in Germany, Adidas has always been the heart of German sports. They literally wrote history together. Adolf Dassler, the founder of Adidas, saw his nation lift the World Cup, representing his company on their shoes from the bench of the German national team in 1954. He was, however, a member of the Nazi party, but his legacy in the company soon paved the way for greatness. German teams later wore Adidas gear for all four of the men’s World Cup titles, their three European titles, and the women’s two World Cup and eight European titles. Toss the coin as many times as you want; even the grandest of luck couldn’t separate these two.

So, it’s clearly obvious that Adidas holds the hearts of the people of Germany. When Nike came flying in and took over Germany, it was not taken lightly. In fact, the magnitude of such a deal made even the higher officials angry. German politicians have reacted strongly against the move, too. The Economics Minister Robert Habeck proclaimed in disbelief that he had to imagine the German jersey without the legendary three stripes and called the act a blow to patriotism. Anger, disbelief and annoyance.

So why did the German Football Association choose to break away from years of history and fame? Simply put finances. According to the DFB (which is what the German Football Association calls them), Nike’s offer was way better in terms of the financial support and vision it needed. The deal also comes with the promotion of amateur football and women’s football in Germany. The new deal is supposed to run until 2034. According to media reports, the deal is supposed to be around $108 million — leaps above what Adidas used to provide them.

The timing is also a key indicator of the new partnership, which will start in 2027. Germany’s recent performance in international tournaments has been abysmal, to say the least. The 2014 champions have failed to push through the group stage in Russia in 2018 and Qatar in 2022. But before 2014, they were a force known to be feared by all the other teams. Their performance didn’t fall short of it either. Hence, until 2014, they took in 61 million Euros. But after that, only 27 million in bonuses. A staggering difference. The DFB also has criminal tax proceedings against them and their new expansion plans with their new headquarters in Frankfurt — something that set them back by 180 million. Hence, the Nike deal should be able to steer them in a much sounder direction, a problem they couldn’t solve before. This deal is spectacular for reasons aside from financial motives. For starters, Nike has been trying to get into Germany’s skin for some time now. In 2006 and 2007, DFB was presented with big deals and fancy contracts. However, it bore no results, as nothing could shake them from their allegiance to Adidas. The German football association was so driven towards one brand that it even barred Nike-sponsored players from wearing its boots during National team duty at the beginning of the 2000s. So when Nike finalized the deal, the DFB had to publicly publish a detailed Q&A section on their official website to clarify their stance and the commitment between the two stakeholders.

What does this mean for Adidas? This news comes at a time when Adidas is battling with the aftermath of its complicated relationship with controversial rapper Kanye West and his Yeezy line. Adidas has reportedly posted a net loss of 58 million euros in 2023 because of lower sales from the Yeezys. Even though they were the ones who convinced Kanye to sign with Adidas, it has backfired after a decade, and, as mentioned before, Adidas has faced its first annual loss in the last 30 years. To sum it up, they are facing losses from the Yeezy line and the German national team contract running out in 2027. So, how is Adidas handling it? They could. Firstly, while it’s a nail in the coffin to years of history, they still have other collaborations going strong. They have deals with other National Teams that are performing remarkably well, like Argentina and Italy. Adidas is as strong as ever with Messi. It will also sponsor the 2026 World Cup.

The deal itself makes the people of Germany emotional since one of their very own will no longer represent them. This makes people more inclined towards Adidas than Nike. German citizens have also been boastful of their very own. The mass production of Volkswagens and the luxury brand Mercedes are symbols of success that speak about how well German manufacturers know how to rule their industries. Even if they won’t represent the German national team anymore, it is very likely that they will still have the people’s approval.

While it’s a bit dark-tinted for the time being, from an overall point of view, Adidas is flying high. The political vent with the deal is likely to drop off after some time, and Germany’s recent performance shows a bit of promise. The next World Cup, where Adidas is still the only logo beside their national flag on the jersey, can be the final redemption before both parties go their separate ways.

So, for Nike, wrapping this deal sends a powerful message that they are now the leading brand in the world of sports. Adidas, though not far behind, is merely facing a slight slump in their attempt to win back the people Nike swayed to their cause. But it needs to come back from the Kanye catastrophe and the losses it will incur. They can go only so far with shoes and new releases.

Author – Malik Araf