By Andrew Warshaw
August 8 – US sportswear giant Nike has outpaced its German rival Adidas in supplying kit to Europe’s top five leagues ahead of the 2014/15 season for the first time since 2009-10 according to new statistics supplied by Sports marketing research group Repucom and PR Marketing.
In the coming season it will only be in England of the major leagues where Adidas is the most dominant supplier. Adidas has five English Premier sides compared with four for Puma and three for Nike.
Repucom said Nike had jumped ahead of Adidas in Europe to supply 26 of the region’s top clubs, up five compared with last year. Adidas is supplying 18, down four. Although it has been a serious player in football only since 1994, this suggests Nike is now threatening Adidas’s leadership in the sport. At the World Cup in Brazil, it supplied more teams for the first time with more than half the players wearing its boots.
However, Adidas has the more lucrative deals. “Whilst Nike looks to maximise the number of teams it supplies, Adidas is going for the most popular, most followed and ultimately biggest selling clubs in the world,” Repucom football expert Andrew Walsh said.
Altogether approximately 13 million shirts were sold by the 98 clubs in the big five leagues in England, Spain, Germany, France and Italy. This figure is up over 14% on the 2011/12 season two years prior proving that fans still treat buying replica kit as a crucial part of their support.
The English Premier League clubs sold the most – more than five million – compared with La Liga (3.1 million), the Bundesliga (2.32 million), France’s Ligue 1 (1.22 million) and Italy’s Serie A (1.18 million).
Nike has signed more top teams in Spain, Germany, France and Italy, a total of 23, compared with 13 for Adidas and five for Puma.
“Adidas and Nike, with Puma in third place, have managed to keep a good headlock on the market,” Walsh said, noting that another US brand Under Armour had not managed to sign another top side other than English Premier club Tottenham Hotspur.
But it is important to stress that Adidas can still boast the most lucrative deals, notably striking a record $1.3 billion shirt agreement with Manchester United which it will be taking over from Nike beginning with the 2015-2016 season. It is also replacing Nike at Italian champions Juventus.
“In terms of revenue it is the top ten European teams which dominate, delivering 65% of total shirt sales in the five key football leagues, most of which coming from clubs in the English Premier League, adidas’ strongest market,” said Walsh. “Whilst Nike may be winning in the quantity stakes, Adidas is certainly not bowing out in the running for market superiority, far from it in fact. The brand is now starting to flex its muscles by supplying Europe’s biggest clubs.”
Currently, Nike’s top five deals worth approximately €125 million per year are Barcelona, Manchester United, Paris Saint-Germain, Juventus and Internazionale. Adidas’ top five are Real Madrid, Chelsea, Bayern Munich, Milan and Marseille for approximately €135m per year.
“Manchester United’s Nike deal is currently worth an estimated €31.5 million per year, a figure dwarfed by adidas’ new €94 million deal, a difference of over €62 million. The deal with Juventus will also increase, from €19 million to approximately €23.25 million per year,” said Walsh.
“Adidas’ position in the market is certainly one of ‘quality’, already official partner of world football’s biggest tournament, the FIFA World Cup, as well as world champions Germany and the UEFA Champions League. Now they are moving to kit out the world’s biggest clubs underlining their position as football’s leading sports brand in terms of sponsorship. A title that Nike will of course continue to rival.
“How the strategies of these big brands develop will ultimately play a defining role in shaping the commerciality of the industry itself and it is key for clubs to see how these two giants are carving up the European football apparel market. Whilst Nike looks to maximise the number of teams it supplies, Adidas is going for the most popular, most followed and ultimately biggest selling clubs in the world.”
Aside from the battle between Nike and Adidas, Puma has been able to strengthen its market position as the third major power in European football. Puma now kit out nine clubs in Europe’s top five leagues. Italian brand Kappa’s eight deals means it is the only other company to supply more than four clubs ahead of the 2014/15 season.
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