adidas Set To Acquire Stake In Bayern Munich Soccer Club

Germany-based adidas-Salomon "is to buy a 10% stake in" German soccer club Bayern Munich for US$70M, according to Julia Day of the London GUARDIAN, who added that adidas will "issue new shares to fund the deal, which marks the company's first move into" soccer club ownership. Day added that adidas is "not planning strategic partnerships with other soccer clubs." Meanwhile, adidas execs said that the company "would remain the official sponsor, supplier and licensee of Bayern Munich until 2010" (London GUARDIAN, 9/18). Analysts said that adidas' decision to "take a stake in the club, rather than merely extend the existing co-operation, would allow it to intensify relations over and above simple brand marketing." But the FINANCIAL TIMES' Bettina Wassener writes the move "may have been partly a defensive move to prevent other competitors from moving in on the club." adidas execs also said that they "saw the purchase as a means to strengthen its position in Germany and the rest of Europe as well as helping Adidas's growth strategy in the US and Asia. It would also allow it to test the waters in new markets such as sports management and marketing" (FINANCIAL TIMES, 9/19).