Adidas and the German FA (DFB) on Monday officially renewed their long-term partnership for a further four years, though it was not the long-term deal the German sportswear company was hoping to sign. Adidas will remain the official kit supplier of Germany’s national football teams until ’22, following the expiration of its current deal in ’18. Outgoing adidas CEO Herbert Hainer ended speculation about the financial terms of the renewal by stating the company offered a package to the DFB that totals €50M ($57M) per year starting in ’19. Recent reports suggested the deal could be worth between €65M-€70M ($74M-$79M) annually. The figure nonetheless represents a 100% increase for the DFB, which currently receives an estimated €25M ($28M) a year from adidas. Having been a partner of the federation for more than 60 years, Hainer made clear adidas intended to reach a long-term extension with the DFB. “We would have loved to extend our partnership with the DFB beyond 2022,” he said at the deal's official announcement in Paris. “That is not what the DFB wanted at this point in time, and we respect that.” The DFB did not respond to a request for comment.
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Adidas CEO Herbert Hainer and
DFB President Reinhard Grindel.
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TOP DOLLAR: The financial component of the agreement makes it the most lucrative kit deal in the history of the DFB. It also surpasses Nike’s €42.6M ($48M)-a-year deal with France as the highest-valued national team kit contract. However, the figure is still far behind Nike’s recently announced 10-year extension with Barcelona, reported to be worth $175M annually. The U.S.-based company was also thought to be very interested in partnering with the defending World Cup champions, and was reportedly even willing to pay a higher fee than adidas. Knowing of the increased competition from Nike and other rival brands for the world's largest football federation, Hainer said, “I will not be responsible for the next contract extension because my term of office as adidas Group CEO ends at the end of September. But I truly do believe that adidas will then again make the DFB an attractive offer, both content-wise and in financial terms. Because the DFB and adidas simply belong together.” DFB President Reinhard Grindel said that part of the money will be used for the construction of the federation’s new academy in Frankfurt.
MORE DEALS: The DFB also announced on Tuesday that supermarket chain Rewe has renewed its partnership as the federation's official nutrition partner through '18. Rewe has been a partner of the DFB since '08. The company will continue to feature German national team chef Holger Stromberg in its activations through recipe ideas and practical tips for a healthy diet. The DFB did not disclose any financial terms.
