22 February 2011 , the French Football Federation yields an unequalled offer from Nike: the brand proposes 42 billion euros per year, until 2018, to have the “swoosh” tagged on the National shirt and, in the mean time, to erase Adidas’ logo, to tear a 30 years old branding contract.
The two giant’s battlefield is inarguably professional sportsmen’s equipment and the most successful they are, the fiercest the struggle is.
Because labelling the winners transforms the brand into a winner’s brand, and nothing magnetizes more the consumer.
It is also the reason why sport idols are offered staggering amounts of money to lend their image to brands : Zinedine Zidane to Adidas, Rafael Nadal or Cristiano Ronaldo to Nike.
They confer to the equipment manufacturers a semi-heroïc dimension, hence not just helping to sell Football or Tennis stuff but also giving a huge added value to all the products of the brand.
Besides, a sponsored shirt, as national as it is, will always belong to the brand selling it . Actually only a very small percentage of the profit margins go to the sponsored team, for instance every shirt sold from Olympique de Marseille’s store brings 6 euros to the club, whereas 54 euros go to Adidas.
Undeniably sponsoring is a very profitable activity as it fills brand’s pockets as it enshrines them, though we should not overlook the other side of the coin, the embarassing details such as the 1997 scandal about the working conditions of Nike manufacturers in Asia.
Today, many organizations claim that few changes have been observed in China or Thailand, where workers are employed 7 days a week, 12 hours per day, therefore violating the Nike code but also the local legislation.
22 February 2011 , the French Football Federation yields an unequalled offer from Nike: the brand proposes 42 billion euros per year, until 2018, to have the “swoosh” tagged on the National shirt and, in the mean time, to erase Adidas’ logo, to tear a 30 years old branding contract.
The two giant’s battlefield is inarguably professional sportsmen’s equipment and the most successful they are, the fiercest the struggle is.
Because labelling the winners transforms the brand into a winner’s brand, and nothing magnetizes more the consumer.
It is also the reason why sport idols are offered staggering amounts of money to lend their image to brands : Zinedine Zidane to Adidas, Rafael Nadal or Cristiano Ronaldo to Nike.
They confer to the equipment manufacturers a semi-heroïc dimension, hence not just helping to sell Football or Tennis stuff but also giving a huge added value to all the products of the brand.
Besides, a sponsored shirt, as national as it is, will always belong to the brand selling it . Actually only a very small percentage of the profit margins go to the sponsored team, for instance every shirt sold from Olympique de Marseille’s store brings 6 euros to the club, whereas 54 euros go to Adidas.
Undeniably sponsoring is a very profitable activity as it fills brand’s pockets as it enshrines them, though we should not overlook the other side of the coin, the embarassing details such as the 1997 scandal about the working conditions of Nike manufacturers in Asia.
Today, many organizations claim that few changes have been observed in China or Thailand, where workers are employed 7 days a week, 12 hours per day, therefore violating the Nike code but also the local legislation.
Alexandre L.
Sources:
http://www.fiba.com/asp_includes/download.asp?file_id=406
http://www.bizmology.com/2010/06/25/nike-vs-adidas-the-battle-for-buzz-in-the-world-cup/
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