By Barry Janoff
June 16, 2016: Following what it called a "complete re-start of (our) football footwear business," and led by deals with FIFA, Leo Messi and Manchester United, adidas Group said that its global soccer sales are expected to top a record $2.78 billion in 2016, up more than $300 million from the company's $2.45 billion in sales last year.
“I am proud to report that our complete re-start of the football footwear business twelve months ago is paying off," Herbert Hainer, adidas Group CEO, said during a company media event today (June 16).
Adidas Group said that its soccer consumer is "constantly looking for newness," adding that "these young players expect fresh innovations, products and colorways on a regular basis, especially in footwear."
At the event in Paris, Hainer pointed out that the rise in soccer sales is being felt across the brand and is helping adidas to build its reach among key consumer demographics.
"We spend a load of money on soccer, but soccer sells other products," said Hainer. "We have gained market share in key markets and our footwear offering is resonating well among our young target audience."
Adidas specifically pointed to the current UEFA EURO 2016, where adidas is an official partner, and Copa América, where rival Nike is an official partner but adidas is aligned with several federations and players, as being key drivers for sales in 2016.
In addition to FIFA and UEFA, adidas is also an official partner for MLS; numerous national federations, including reigning FIFA World Cup champion Germany; and numerous clubs, such as ManU, Real Madrid, AC Milan, Chelsea FC, FC Bayern Munich and Juventus.
Adidas global soccer brand ambassadors include Messi, Steven Gerrard, Gareth Bale, Robin van Persie, Oscar dos Santos, Krim Benezema, Frank Lampard, Philipp Lahm and Mesut Ozil; as well as soccer legend David Beckham.
Messi has a line of signature shoes and apparel and stars in multi-media marketing for the brand.
Adidas has the three most expensive kit deals in the world, according to industry analysts, topped by Manchester United ($105.5 million annually, 2015-25), Bayern Munich ($59.8 million annually, 2015-30) and Real Madrid ($47.9 million annually, (2012-20).
Nike will take over the mantle of most expensive kit deal in 2018 when its ten-year pact with FC Barcelona, estimated at $140.9 million annually, kicks in.
“We listened closely to our consumers.," said Markus Baumann, GM for adidas Football. "Based on these insights, we have successfully re-positioned our football footwear offering over the last year. Our recent gains in market share in key cities across Europe are a clear sign that our strategy is paying off."
"We have gained market share in key markets and our footwear offering is resonating well among our young target audience."
Sponsorship spend on soccer in the U.S. is expected to set a record, reaching upward of $333 million in 2016.
That is up nearly 10% from 2015 and is outpacing both the 5% growth in overall sports spending and the 4.5% increase in North American sports sponsorship spending this year, according to research, sponsorship and consulting firm IEG, Chicago.
According to research firm Statista, which provides information to companies and universities around the world, global sponsorship spend on soccer will hit a record $60.2 billion, up from $57.5 billion in 2015.
According to adidas Group, based on market share, adidas Football footwear "had the clear lead across Western Europe’s top five markets in Q1 2016 (and in) Western Europe’s five key cities: London, Paris, Barcelona, Milan and Berlin."
"With a much stronger focus on our consumers’ needs, we are now perfectly positioned to win additional market share in key cities and markets around the world,” said Baumann.
Hainer is leaving his position of 15 years as adidas Group CEO in October and will be replaced by Kasper Rorsted.
Adidas is ending its alliance with the NBA following the 2016-17 season, when Nike will take over; but is replacing its Reebok division's official status with the NHL beginning in 2017-18, as well as the World Cup of Hockey this September-October.
Soccer Deals Top $330M In U.S., $60B Worldwide
Back to Home Page