If all cuckoo clock manufacturers in the Black Forest, Lufthansa, and the Hofbräuhaus in Munich were simultaneously sold to overseas buyers, the outcry would not be much greater. Even politicians became worked up about the decision by the German Football Association (DFB) to part ways with Adidas. Industry leader Nike has been awarded the contract as the future kit provider, having previously attempted to outbid its rival all the way back in 2006. The Americans had offered much more money even then, but a court of arbitration obliged the DFB to stand by a commitment to old friend Adidas.

"The DFB and Adidas simply belong together": This was the credo of former CEO Herbert Hainer, which his successor Kasper Rorsted also referred to when extending the contract in September 2018. The close partnership has lasted since 1950, blending nostalgia, tradition, and a touch of patriotism. A legendary highlight of the early days was the final of the 1954 FIFA World Cup in Bern, when the German team led by captain Fritz Walter defeated the highly favored Hungarians 3-2 – in the rain with screw-in studs from company founder Adolf (Adi) Dassler.

The last great day of glory for the DFB men's team is already ten years in the past -the 1-0 victory in the World Cup final against Argentina. This was followed by the embarrassing exits in the group stage in 2018 and 2022, with elimination in the round of 16 of the European Championship in between. The women's team has also been disappointing lately. It's surprising, then, that Nike is paying significantly more to the DFB for the eight-year period from 2027 to 2034 than the 50 million euros per year previously paid by Adidas. Figures of around 100 million euros are mentioned.

Given a marketing budget of 2.5 billion euros last year, Adidas could have afforded to pay even more. However, the question arises whether that would be appropriate given the sporting plight of the DFB – even though recent victories in the test matches against France and the Netherlands offer hope for this summer's European Championship. Börsen-Zeitung understands that Adidas did not have the opportunity to increase its initial offer, to outbid Nike. Apparently, the financially strapped DFB decided to proceed based on the initial offers. Nevertheless, the association angered its partner with its poor communication: Adidas was only informed on the same day as the public announcement.

Kit contracts typically pay a fixed sum, but also depend on sporting success which influences the level of football shirt sales. Specific numbers are no longer disclosed. In 2014, Adidas reported that around 3 million Germany shirts were sold before and after the World Cup victory in Brazil. It remains the absolute record for DFB football kit.

Adidas presented the new tops, shorts, and socks for the European Championship just a few weeks ago. The away jersey, with its unusual colour choice blending pink and purple, has attracted attention. Apparently, it appeals to many: According to Adidas, the new away kit sold better in the first few days of trading than any other in this category before. In the past, black and green were the dominant colors, with the away jersey being red once – in 2008. It remains to be seen whether the new kit marks the beginning of a surprise effect trend, or whether it will later be seen as a one-time outlier.

Since the decision to go with Nike has been made three years before the start of the contract, the close friendship between the DFB and Adidas looks to be over. There could be frosty relations at the leadership level. But both sides need to keep it together, because there is still a big tournament ahead during the remaining time together after the European Championship in June and July: The 2026 World Cup in Canada, Mexico – and Nike's home country, the USA. Naturally, the German team needs to qualify first.

Adidas experienced a moment of glory in February in the US – without any marketing effort. More than 120 million viewers in the US, and 60 million in other countries, watched the Super Bowl, the season finale of American football. Taylor Swift, currently the hottest star in pop music, was seen in the stands alongside Blake Lively. Marketing strategists couldn't have scripted it better: Lively casually wore a bright red tracksuit top and trousers with the three stripes.

The actress is among the celebrities in the entertainment scene who wear Adidas fashion without an advertising contract. Taylor Swift is also occasionally seen in Adidas shoes. CEO Bjørn Gulden seized the opportunity, as he explained in the earnings press conference, to boost the marketing of the Adicolor jacket worn by Lively. The company pays special attention to situations such the Super Bowl on its own channels, including its website, newsletters, and emails to members of the Adidas Club, and also via contact with specialty retailers.

Retail distributors are a crucial way for Gulden to get the brand with the three stripes back on track. His predecessor Kasper Rorsted had neglected these distributors in favor of the more profitable „Direct to Consumer“ channel with its own stores and online sales. Gulden's approach to retailers has been well received. Frank Geisler, one of the three board members of Intersport Germany, notes: „Bjørn Gulden clearly puts the products in the foreground, and seeks personal contact with us to talk about the products.“ There are around 1,400 sports specialty stores in Germany.

Gulden understands that these retail channels are important partners for the brand to create visibility and proximity to the consumer. „You can see that Adidas is focusing much more on its own strengths with him, differentiating itself more from its competitors, and taking its own position", Geisler reports. Sales of products that belong to the core of the brand, such as Adidas Originals and the football segment, have picked up again. „These could be indicators that the brand is on its way back to its old strength.“

In contrast to the close relationship with retailers, Gulden's relationship with DFB leadership is likely to be tense now. But perhaps the former professional footballer will take it all sportingly.