Kylian Mbappé signs with On after Nike deal ends
On’s first football signing brings Kylian Mbappé aboard as the Swiss brand expands beyond running, while Nike reportedly chose not to renew.
By Maya Lindqvist · Senior Technology Correspondent
2 min read
Kylian Mbappé signs with On in the Swiss sportswear company’s first football agreement, giving the running-focused brand a prominent player for its entry into the sport. On also named retired France international Thierry Henry as its director of football, according to the company’s announcement reported by CNBC.
The agreement ends Mbappé’s long association with Nike. CNBC, citing a person familiar with the private discussions, reported that Nike did not renew the Real Madrid forward’s endorsement contract after it expired in July.
Why did Nike reportedly not renew Kylian Mbappé’s deal?
According to CNBC’s unnamed source, Nike decided it had benefited from what it considered the prime years of Mbappé’s career and would direct its endorsement spending elsewhere. That account is not a joint public explanation from Nike and Mbappé.
Nike’s public response did not give a reason for the contract’s end. The company said Mbappé had been an important part of Nike Football over nearly two decades and wished him success in the next phase of his career, CNBC reported.
What Mbappé brings to On’s football plans
On has built its profile primarily in running and has been expanding into other categories, CNBC reported. Its agreement with Mbappé is its first signing in football, while Henry’s new role gives the company a former French international to lead its football effort.
Mbappé joined Nike in 2006 as a child, according to CNBC. In a statement carried by the outlet, he said he was attracted by the chance to help create something new, contribute his experience and perspective, and pursue innovation while retaining football’s sense of enjoyment.
David Allemann, On’s founder and co-chief executive, said the company wanted to bring new ideas to football. Financial terms, the length of Mbappé’s agreement and any product plans were not disclosed in the information reported by CNBC.
The business challenge for On
Jefferies cautioned in an analyst note that football is costly for brands to enter and that athlete endorsement alone cannot establish credibility in performance products, CNBC reported. The note drew a comparison to Under Armour’s former partnership with Stephen Curry, saying a star athlete did not make that brand a leading force in basketball.
The change comes as Nike seeks to rebuild brand loyalty and product innovation under chief executive Elliott Hill, CNBC reported. The outlet said Nike has faced weak sales, including in China, though neither Nike nor On publicly framed Mbappé’s new agreement as a response to those pressures.
This story draws on original reporting from CNBC.