Why I am more worried about the Future of the Adidas Brand than the Future of German Soccer

The DFB is currently being harshly criticized because of their decision to replace adidas by Nike as the sponsor of the German national football team. The timing of the announcement of the new sponsor may be indeed strange so shortly before the European Championships and in view of the fact that the national soccer team is staying at the adidas campus in Herzogenaurach during that time.

From a business and brand management point of view, however, adidas is much more open to criticism. In my opinion, it is obvious that this change will significantly damage the brand value of adidas. It is a strategic miscalculation by adidas' management to lose a centerpiece of German sport and also one of the central brand ambassadors to THE main competitor. This will widen the gap to Nike even further.

Resting on historical laurels is not enough to maintain brand strength. Interbrand estimates the current brand value of adidas to be $16.6bn. Of course, significant investments are required to at least maintain such brand values. And obviously, the main competitor saw the value of this investment for the brand.

Brand strength at risk

The decision-makers are putting the future value of one of Germany's most valuable brands at risk. We, the "older ones" ;), may still remember some brand heritage, such as stories about Adi Dassler and how his shoes helped win the 1954 World Cup, for example. But existing and future generations will now walk around in national jerseys with the "Swoosh" instead of the "Three Stripes". This will definitely damage adidas' brand strength.

I'm not worried about the future of German soccer, it will always exist. I would not blame the DFB for this decision. It is adidas who made a wrong decision. So, I'm rather worried about the future of the adidas brand than the future of German soccer.

Published on 26 March 2024 by Prof. Dr. Alexander Himme