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On Signs Mbappé in Blow to Nike

Financial Times Companies •
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Swiss sportswear brand On has signed Kylian Mbappé to spearhead its entry into football, dealing a blow to rival Nike, which has sponsored the French star since he was a child. The company plans to launch its first football boots in 2027 before developing kits and eventually lifestyle products and trainers, according to people familiar with its plans. On, which has appointed former France footballer Thierry Henry as its director of football, is betting that its Light Spray manufacturing technology can help it win significant share in a market dominated by Nike, Adidas and Puma.

The company is hoping to mirror its rapid expansion in running and tennis. Mbappé’s move is a notable loss for Nike, which had sponsored the Real Madrid forward for about two decades and made him one of the leading faces of its Mercurial boots. It follows Barcelona superstar Lamine Yamal’s switch from Nike to Adidas.

On wants to offer lightweight boots, which it says will be designed to give players a closer feel for the ball. Its Light Spray technology uses robots to spray a continuous filament to create the upper part of a shoe. Production facilities can be established within months, according to people familiar with the technology, allowing On to add manufacturing capacity relatively quickly.

Shares in On were broadly flat in early trading in New York following the announcement of the Mbappé deal on Friday. Analysts at Jefferies said the deal “looks less like a new growth driver and more like evidence that [On] must spend harder to sustain growth”. They added: “Football is one of the most expensive categories to enter and performance credibility cannot simply be bought.”The Zurich-based group intends its deal with Mbappé to be a long-term partnership modelled in part on its relationship with Roger Federer, according to people familiar with the plans.

The Swiss tennis champion became an investor in On in 2019 and has since worked with the company on product development, including its expansion into tennis.