Why Is Nike So Calm In The Face Of The Big Cake In The Football Market?

Now, the competition of sports brands has entered the Warring States era. Especially in the field of football, more and more "rookie" began to rob the cake.

Take the Premier League as an example, Adidas can still maintain its hegemony. Puma has also increased its investment. The New Balance, Under Armour and other American colorful new favorites have quietly joined the battle for the territory.

At this point, however, the existence of another sports brand guy, Nike, has been greatly weakened.

In fact, looking at the whole European football world, the cards that Nike can play is only Barcelona, Manchester City, Inter Milan and Paris Saint Germain. It is impartial. The four major leagues have one big house representative.

However, compared with Adidas, which is increasingly large in resources, it still appears a lot thinner.

While many brands are rushing to enter the market, Nike has shown a low profile concession.

What kind of medicine does this sporting goods sell in the gourd?

Adidas's winning of Manchester United's jersey contract from Nike at the price of 10 pounds and 750 million pounds has been a great sensation.

The contract, a high sum, has set a new record for football club jerseys sponsorship.

And Adidas provides 31 million pounds a year for Real Madrid, even less than half of Manchester United's new contract.

You know, Manchester United and Nike have maintained 13 years of cooperation, and the sponsorship fee has reached 23 million 500 thousand pounds.

In front of Adidas's golden bomb, Nike did not resist too much.

From a numerical point of view, Adidas has indeed made a nearly crazy move, but Nike obviously has its own considerations.

Last year, when Manchester United began planning a New Jersey sponsorship contract, it was in the turbulent period after the Ferguson era. The League performance was bad and did not win the Champions League. The new coach Van Gaal could not make any changes.

{page_break}

Of course, Manchester United has a large number of fans all over the world, which is the biggest capital in their negotiations.

However, in the past two seasons, though they began to wave money in the pfer market to get rid of the plight at the fastest speed, there is still a long way to go before we can regain the strength of the Ferguson era.

Nike is also out of concern about the future of Manchester United.

Nike said in a statement that any cooperation with the club must be mutually beneficial. The terms we receive are not in the interests of Nike shareholders.

It is evident that Nike shareholders are not optimistic about the potential returns of such a high investment by Manchester United.

The same problem also appeared in another Premier League Arsenal.

Before joining Puma, Nike and Arsenal also had seven years of cooperation, but the annual sponsorship amount was only 8 million pounds.

But when Puma launched an offensive with a contract of 5 years and 170 million pounds, Nike chose to quit.

As a result of the construction of the new stadium, Arsenal began to seek financial balance in the pfer market, which seriously affected the competitiveness of the team.

Arsenal can't win any trophy for nine years, and the Champions League is also mediocre. This situation is obviously unable to impress Nike to make more investment and break up is inevitable.

At this stage, the major European leagues and clubs have intensified their commercial development efforts.

Sports sponsorship is a seller's market in the field of sportswear brand, and the influence of excellent clubs on sports brand is huge. Therefore, increasing the amount of sponsorship has become the demand of the most powerful stage.

From the multiple increase of the value of the competition copyright, we can see that the appetite of football in the commercial field has been greatly improved compared with the original. The jump in the price of the sports brand has also made Nike somewhat unprepared.

However, from another point of view, the US market is still the base of Nike, where Nike's shot is far more decisive than that in European football. Of course, Nike is also under more competitive pressure.

When the NBA alliance entered the countdown with Adidas's 11 year Jersey Supply Agreement, Nike decisively killed and grabbed the fruit from its competitors.

Adidas has paid nearly $40 million a year in the past 11 years. It is understood that Nike's new contract is much higher than this figure.

{page_break}

Of course, this is only the tip of the iceberg.

Last year, Andrew made Durant feel the pressure of 10 years with a high price of $285 million for Nike. In order not to let the fast growing new brand continue to expand, Nike also had to match the offer.

In addition, Nike's sponsorship of American university sports has never ceased. This is also a very important part of their strategic layout in the local market.

This year, Nike signed a billion dollar contract with University of Texas and University of Michigan respectively, and completed a contract extension with Duke University.

It is the huge investment and energy involved in the local market that Nike has to choose to give up in the face of high price competition in the football market.

Of course, even in the football market, Nike has not yet been cut off.

In terms of cooperation with players, Adidas still has plenty of resources, but only Messi's contract amount is outstanding.

Nike holds two heavy weapons, C lo and Neymar.

Nowadays football is in a period of talent shortage. Although the competition between C and Messi is still brilliant, but think of C's thirty year old, Messi is no longer young. The world football needs new young idol to take over.

Although the distance to C Luo and Messi's height still has a distance, but young is his biggest capital, and behind the back of the football Kingdom Brazil, this may make Neymar become the new trump card in Nike's hands.

There will also be more outstanding young players coming to the fore, and then there will be a war between Nike and the big brands.

As the largest sports company in the world, Nike's positioning is not only for sporting goods, but also for sports technology and sports marketing. Nike is very important.

At present, Nike is providing the match ball for the three major league matches of the Premier League, Serie A and Spanish League. Every year, Nike shows its new pursuit of sports technology in football.

In the field of sports marketing, it is only the first step to integrate its own brand into the equipment of the players. How to make use of existing resources for proper product development and market promotion is the key to success or failure.

Taking me as the main concern and looking forward to the future, Nike is not necessarily a loser in football market.