Kylian Mbappé Ends Nike Partnership to Sign With On in Sportswear Shake-Up

French soccer superstar Kylian Mbappé has ended his long-standing partnership with Nike Inc. to sign a new endorsement deal with On Holding AG, a landmark move that signals the Swiss sportswear brand's aggressive entry into the global soccer market. The deal, reported by Reuters, represents a significant blow to Nike, which loses one of its most prominent global ambassadors.

On's Foray into Soccer

The signing is a cornerstone of On's strategy to expand beyond its core running and tennis categories into the lucrative soccer business. The Roger Federer-backed company plans to launch its first soccer boots in 2027 and has appointed former French star Thierry Henry as its director of football to lead the initiative.

While financial terms were not made public, On confirmed the agreement with Mbappé includes both cash and equity components. "Now, I find myself surrounded by innovators who dream of the same things I do," Mbappé stated on his social media accounts, alluding to the new partnership.

Another Athlete Defection for Nike

The move concludes a relationship between Mbappé and Nike that began in 2006, when the player was just nine years old. This is the latest in a series of high-profile departures for the U.S. sportswear giant, which has faced increasing competition from ascendant brands.

Recent sponsorship losses for Nike include:

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• Spanish national team player Lamine Yamal, who recently signed with rival Adidas.
• The contract to supply the Premier League's official match ball, which was awarded to Puma last year.

In a statement cited by Reuters, Nike said, "We are proud of what we achieved together on and off the pitch. As he moves into the next phase of his career, we wish him continued success for what comes next."

Investor and Market Impact

The immediate market impact appeared muted. On's U.S.-listed shares saw a slight increase in trading following the news, while Nike's shares were little changed, according to Reuters. The loss of Mbappé adds pressure to Nike's turnaround efforts, which include a strategic refocus on key sports like soccer.

However, some analysts believe investors are more concerned with broader issues at the company. Mari Shor, a senior equities analyst at Columbia Threadneedle, told Reuters that investor sentiment on Nike is already "decidedly negative" and that the market is more focused on the company's product innovation as a driver for revenue growth.