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Adidas $150 Million Dollar Deal with MLS

An old story but worth mentioning as we tie together our soccer finance section.  Adidas put a big chunk of money on the table to support the MLS and keep the Adidas name at the forefront of the US soccer market.  What was Nike's response? More importantly, what shoes do you were, Nike, Puma, or Adidas?

As Adidas looks to capitalize on the growing U.S. soccer market, the company has signed a 10-year, $150 million sponsorship deal with Major League Soccer.

Under the wide-ranging agreement, Adidas, whose North American headquarters is in Portland, becomes the league's official athletic sponsor and licensed product supplier, and will eventually have its brand on every MLS team, as the league will phase out its other apparel partners.

Additionally, through its marketing arm, Soccer United Marketing, MLS was able to offer the Germany-based sports apparel firm exclusivity on English-language U.S. telecasts during the 2006 World Cup. The move fortifies Adidas' position in the U.S. soccer market, but Beaverton-based Nike Inc. -- via deals with the United States Soccer Federation and several marquee American players -- will remain competitive in what both companies see as a lucrative growth area in the years to come.

Source: Biz Journal


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