Sources in Brazil have suggested that German sportswear giant Adidas is about to heat up the brand name ‘cold war’ with American counterpart Nike with a hostile bid that will offer the Brazilian CBF three times the amount currently offered by Nike…
Its been reported in Brazil that Adidas is to test Nike's commitment as CBF sponsor allegedly offering three times the amount currently offered by Nike.
The CBF and Nike prolonged their contract last year, signing up until 2018. However, there's nothing to stop a pre-contract been signed.
"I can’t comment on the news", responded Luciano Kleiman, Adidas’ marketing director in Brazil, "But contacts with national organisations form a regular part of our business". He refused to comment on claims that the CBF and Adidas had met several times, causing panic in the Nike ranks.
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Both firms recently clashed with Nike taking Lionel Messi to court over a pre-contract signed with Adidas when the young Barça star was in talks to renew his commitment to Nike.
The American appeal landed on deaf ears and their $7.5 million claim for damages was turned down. Just a small battle in an expanding world war, it would seem.
There’s also the recent ‘controversy’ over the seleção number 10 shirt that has been worn by Ronaldinho Gaúcho, but recently has been donned by Kaká in three friendlies.
This appears to have nothing to do with the battle for world clothing domination, but, in fact, reflects the shift in the balance of power.
R10 is the poster boy for Nike all across the world, the symbol of the brand in football terms even more so than Ronaldo Fenômeno was at the turn of the millennium.
Kaká, on the other hand, is taking space from Adidas’ other golden boy David Beckham as the dashing face gracing Adidas ads.Dunga showed barely concealed irritation when asked about who gets the number 10 shirt, the Coach evidently already aware of the commercial tug-of-war going on with both firms lobbying for their man to get the coveted jersey number. Nike appears to be unhappy with the Brazil
boss’ focus on the group – when it gives the competition the edge.
Nike have been dressing the seleção ever since 1996, taking over from British firm Umbro who’d produced the 1994 World Cup winning shirt that – worn in Nike’s back yard for the US Cup – seduced the US firm to use Brazil as the spearhead of their move into football (the one played with the feet rather than in body armour and a helmet).
The ‘duel’ between Kaká and Ronaldinho – or, more accurately, between the execs who lurk in the background – seems set to go the next stage as Adidas force their hand and try to wrest the Canarinha out of Nike’s grasp for the first time in over a decade.
Brazilian business magazine ‘Exame’ has published a report claiming that Adidas are ready to invest three times the amount Nike is currently paying the seleção backer the CBF (Confederation of Brazilian Football).
Adidas have been wining and dining very-wine-and-dineable CBF head honcho Ricardo Teixeira ever since a December 2006 meeting at the FIFA HQ in Zurich. The grapevine leaked a potential bid of $40 million annually: over triple the $12 million that Nike forks out.
The CBF and Nike actually prolonged their contract last year, signing up until 2018, and claiming – foolishly – that there was no need to analyse rival bids from other firms as the Nike offer wouldn’t be bettered. With a little sober-headed reflection, that was obviously not the case.
The CBF have got a magpie reputation – how deserved is a matter of opinion and who you listen to – for being lured by shiny coins and large piles of money. This may well sway the decision to renegotiate the Nike deal. After all, the most they can lose is a logo (and get a new one) and the chances are that the organisation will make quite a tidy profit out of the clash.
A sign that there is, in fact, a change of heart within Teixeira’s CBF and that Adidas are close to a coup that will be a real slap across Nike’s global face, is that everybody concerned is keeping mum on the subject.
"I can’t comment on the news", responded Luciano Kleiman, Adidas’ marketing director in Brazil, "But contacts with national organisations form a regular part of our business". He refused to comment on claims that the CBF and Adidas had met several times, causing panic in the Nike ranks.
The US firm had a reported five meetings in direct response to the Adidas threat, bringing the Nike top brass and Teixeira together at the HQ of the multinational in Beaverton, Oregon (USA), the Brazilian welcomed personally by Nike co-founder Phil Knight as a sign of the importance the potential ‘betrayal’ is being given.
Adidas, however, would do well to watch their backs as rival German sportswear giants Puma are also preparing a potential pounce on the famous Canarinha as the estranged ‘son’ of Adidas also recognises the strategic importance of a Brazil shirt deal.
It’s a massive market with over 6 Billion dollars of sales volume per year – more than enough to justify the huge offers made to national and club sides – and everybody wants a bigger slice of the juicy pie. Adidas is currently leading the pack with 30%, Nike with 25% and Puma with 15%.
Out of the top ten nations in Germany this past summer, Adidas sponsor four (France, Germany and Argentina – all ‘recent’ World Cup winners – plus perennial underachiever Spain), Nike two (Brazil and Portugal) and Puma top and tail the list with reigning World Cup winners Italy and Switzerland.
World Cup winners are, naturally, the biggest business on a national scale – and it’s a case of all’s fair in love and war. With Nike also attempting to snatch the Mannschaft (Germany) away from their native patrons Adidas, the football apparel world is getting shirty – and Brazil appears to be the next battleground.