Kylian Mbappé signs with On, the Swiss sportswear brand, after Nike chose not to renew its long-standing endorsement deal with the footballer, a person familiar with the matter told CNBC. On confirmed the agreement on Friday, describing it as the brand’s first signing in football.
On (pronounced like the English word) is a Swiss running and sportswear company founded in 2010. According to CNN Business, the brand gained wider recognition when Swiss tennis star Roger Federer became an investor in 2019. The Mbappé deal represents its most ambitious push yet beyond its core running market.
Why Nike walked away from the Mbappé deal
The person familiar with the matter, who spoke to CNBC on condition of anonymity because the discussions were private, said Nike felt it had already benefitted from the prime years of Mbappé’s career and decided to redirect its endorsement budget elsewhere. Mbappé is currently 27. He will be 31 when the 2030 World Cup kicks off, meaning Nike calculated the best of his commercial peak had already passed.
Mbappé’s relationship with Nike stretched back to 2006, when he was still a child. In a statement, the company acknowledged the length of the partnership. ‘Over nearly two decades, we’ve shared moments that shaped the game and he has been an important part of Nike Football,’ 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.’
Nike is going through a wider period of change. The company has been working to rebuild brand loyalty and drive product innovation under chief executive Elliott Hill. Sluggish sales, including particular struggles in China, have contributed to its stock falling about 50% in the past year.
Mbappé signs with On: what the deal means for both sides
For On, this is a landmark moment. The brand also announced on Friday that it has named retired French star Thierry Henry as director of football, signalling that it is building a serious football operation rather than simply attaching a famous name to an existing product range.
David Allemann, founder and co-CEO of On, framed the signing as a deliberate challenge to the established order in football kit and sportswear. ‘Football doesn’t need another sportswear brand to do more of the same,’ Allemann said in a statement. ‘Football needs new ideas and a challenge to what is possible.’
Mbappé himself said the opportunity to build something new was what attracted him to On. ‘I want to bring my experience and perspective into what we create, push what’s possible through innovation, and always stay true to the joy of football. We have a shared dream, and this is only the beginning,’ he said.
The Real Madrid star is the all-time leading scorer for Paris Saint-Germain, the French national team and the FIFA World Cup. He won the World Cup with France in 2018.
Not everyone is convinced On can convert star power into sporting credibility, however. In an analyst note, Jefferies warned that football is one of the most expensive categories to enter and that ‘performance credibility cannot simply be bought.’ The bank drew a comparison with Under Armour’s past partnership with Stephen Curry, describing it as a case of ‘a star athlete who failed to establish the brand as a dominant player in the sport.’
Nike’s existing football roster still includes Erling Haaland, Vinicius Junior, Alexia Putellas and Sam Kerr, so the loss of Mbappé does not leave the company without high-profile faces in the sport. But it does underline how the endorsement landscape is shifting, with newer brands willing to take on established giants for football’s biggest names.
On has said it wants to bring a ‘fresh perspective’ to football. The next test will be whether that perspective translates into boots and kit that players and fans actually choose to buy. The Jefferies note, naming the Under Armour parallel, sets a clear benchmark the brand will need to clear.
