Key facts
- Nike is reportedly nearing a deal to enter Formula 1.
- Nike execs were on site at the Miami Grand Prix in May.
- Nike has held talks with Formula One Management about potential sponsorship and licensing deals.
- Nike previously sponsored F1 driver Michael Schumacher from 1996 to 2002.
- Rival sportswear brands Adidas and Puma also have partnerships within Formula 1.
Nike is reportedly in the advanced stages of securing a deal to enter Formula 1, marking a potential return to the sport after more than two decades. The sportswear giant has been engaged in discussions with Formula One Management, the governing body of the series, about sponsorship and licensing opportunities. This renewed interest is underscored by Nike executives attending the Miami Grand Prix in May, where they were seen interacting with the incoming Cadillac F1 Team. Representatives from Nike also gifted custom footwear to Cadillac CEO Dan Towriss and his wife, and drivers Valtteri Bottas and Sergio Perez were spotted wearing Nike shoes.
Nike's previous significant involvement in Formula 1 was through a personal sponsorship deal with legendary driver Michael Schumacher, which ran from 1996 to 2002. Since then, Nike has largely ceded the F1 market to rivals such as Adidas, which has partnerships with Mercedes-Benz and Audi, and Puma, which produces co-branded apparel for F1. The influx of sportswear brands into F1 has accelerated since 2020, driven by the sport's increasing commercial profile, particularly in the United States.
The potential entry of Nike into Formula 1 comes as the company's stock has seen a decline, contrasting with the significant growth of Liberty Media/F1 stock. Analysts suggest that F1 is on a credible path to increasing its annual licensing royalties significantly by 2028. The specifics of any potential deal with Nike, including its impact on existing partnerships like the one with Puma, remain unclear.