FILE PHOTO: Paris 2024 Olympics - Adidas Olympics Outfits Launch - Adidas Arena, Paris, France - April 18, 2024 Adidas CEO Bjorn Gulden during the launch REUTERS/Sarah Meyssonnier
LONDON (Reuters) -Adidas CEO Bjorn Gulden said the German brand decided not to match Nike's offer for Germany's national soccer federation sponsorship after the U.S. company beat Adidas on its home turf last month to end its 70-year partnership with the federation.
Nike outbid Adidas to become the official supplier for the German Football Association (DFB) and will supply all national teams from 2027 to 2034.
"I'm not annoyed at all," Gulden said in response to a question during a press conference. "We are a company that needs to balance cost and revenue, and the price that is quoted in the press that our competitor paid is not something that we will pay."
Asked about media reports that Adidas has signed a kit deal with Liverpool, taking over from Nike, Gulden said there was nothing to announce.
Adidas, Nike, and other sports brands are constantly vying for kit deals with the biggest and best soccer teams, as replica shirts can boost their revenues, especially during big tournaments like the World Cup or the Euros.
But core products like footwear are ultimately a bigger driver of the business.
"All these sponsorship deals are about brand recognition and brand sentiment," said Tom Scott, CEO of sports-focused communications consultancy Trippant in London.
"(But) market share is not driven by which shirts you are sponsoring, it's about which sneakers you are selling week in and week out."
(Reporting by Helen Reid; additional reporting by Linda Pasquini; editing by Jason Neely and Jan Harvey)
