After months of negotiations, the German Football Association (DFB) and the sporting goods manufacturer Adidas have agreed on an extension of the sponsoring agreement on the 2018 addition. The Bureau of the DFB has approved the agreement with the three-stripe mark on Sunday at its meeting in Paris on the edge of the football championship. According to information from FAZ.NET Adidas will pay around 50 million euros annually for the equipment contract, the contractual maturity just over four years. This is significantly shorter than the ten years of the current agreement. The volume, however, is twice as high, which currently amounts to only 25 million euros a year.
Author: Michael Ashelm, editor in business.
Author: Rüdiger Köhn, economics correspondent, based in Munich.
The participants gave on Sunday night to no observations. DFB and Adidas have invited at short notice for a press conference on Monday afternoon in Paris, with DFB president Reinhard Grindel and Adidas CEO Herbert Hainer. With the conclusion of the contract Adidas continues its decades of cooperation with the biggest national football association in the world. The American competitor Nike, which was the only bidder in the game, again has thus left behind.
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Nike had tried with a high bid of around 500 million euros over a period of eight years Adidas outdo already of 2008. Even then, the price was significantly above the now agreed. The Americans did everything possible to obtain the contract to equip the German national team on the doorstep of the rival.
Hainer negotiated personally
The negotiations of the DFB had to review in particular in the German Football League (DFL) out, which has been criticized especially the intransparent haggling over the contract. Unlike then it is now seeking part of the association, to make the process this time open and transparent. Already more than a year ago the now retired DFB president Wolfgang Niersbach opened the bidding round knock out in the hope that the highest possible price. As serious bidders but came only Adidas and Nike in question, not just name the field accommodated manufacturer Puma or Under Armour from the United States.
Because of the football scandal surrounding the awarding of the 2006 world Championships in Germany, the process was delayed, however, continues. Last was expected an agreement after the European Championship in France. But he is still time before the departure of Adidas CEO Hainer, who assigns the end of September for reasons of age and had a degree made yet been fixed.
An agreement between DFB and Adidas, however, was expected. For Adidas had a right of first refusal (Matching Offer Right). The is the football business practice and makes it possible still to beat the competing offer of another. A defeat for the franc would have an enormous loss of prestige means. Hainer personally had led the talks with representatives of the DFB with a team.
jersey sold by 2014 three million
“The German national team is a showcase for Germany, we are a model company with German roots, “the CEO said once. So plan Adidas to manufacture the DFB jersey again in Germany. It is a lucrative business with soccer shoes, jerseys and memorabilia. The World Cup jersey of the German team in 2014 was sold three million times, twice as often as not the 2006 World Cup in Germany. Full of hope looks Adidas at the European Championships in France. Only last Thursday, the Group announced its intention to achieve 2.5 billion euros in sales this year, 13 percent of the consolidated volume of 19 billion euros. The company is the clear market leader in the segment before Nike.
But for Hainer there is a pain threshold, how much is paid for a contract. It was after all the shareholders accountable. Would Hainer coat, takes his successor and former Henkel CEO Kasper Rorstedt the pay for. With now some 50 million euros agreed, however, probably the price now move within the normal range after having hyperinflation used in recent years with highly doped contracts for national teams, club teams and football players.
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