Key facts
- Kylian Mbappe has ended a 20-year partnership with Nike to join Swiss sportswear brand On.
- On plans to launch its first soccer boots in 2027.
- Thierry Henry has joined On as its Director of Football.
- On's US-listed shares pared premarket gains and were slightly higher in trading on Friday.
French soccer star Kylian Mbappe has ended a 20-year partnership with Nike to join the fast-growing Swiss sportswear brand On. The financial terms of the deal were not disclosed but include both cash and equity components. The move signals On's ambitions to expand beyond running and tennis into soccer, with plans to launch its first boots in 2027. Thierry Henry, former France star, has joined On as its director of football.
Mbappe's departure from Nike, which dates back to when he was nine years old, comes as Nike faces pressure from newer brands making inroads into the global sportswear market. Nike recently lost Spain's Lamine Yamal to Adidas. Nike stated it wished Mbappe continued success in his next career phase. Despite the loss of a marquee athlete, Nike shareholders are unlikely to view the move as a significant blow, with sentiment already negative and focus shifting to product innovation, according to Mari Shor, senior equities analyst at Columbia Threadneedle.
On's US-listed shares pared premarket gains and were slightly higher in trading on Friday, while Nike shares were little changed, indicating a limited immediate impact on investors. On is seeking growth in the Americas, which account for more than half of its revenue.