Mbappé Ditches Nike for On: Can Star Power Fuel Soccer Sales?

French soccer star Kylian Mbappé has left Nike (NKE) after a two-decade partnership to sign with Swiss sportswear brand On (ONON). According to Reuters, the deal includes both cash and equity that gives On its first major star as it enters the soccer market for the first time.

On's LightSpray manufacturing process and its partnerships with Roger Federer and Thierry Henry are expected to help the company gain credibility in the soccer world. Mbappé's global profile could also attract younger customers, retailers, and soccer talent to On as it develops new footwear technologies.

Nike (NKE) still retains a powerful soccer platform despite losing Mbappé, with agreements to supply France's national teams through 2033-34 and Germany's national teams starting in 2027. However, the company has lost other athletes and contracts in recent times, which could weaken confidence in its turnaround efforts.

On (ONON) must now prove that investing in star power can generate profitable soccer sales, a challenging task given the dominance of established brands like Nike (NKE), Adidas, and Puma. The company's core Americas business is also facing pressure due to uncertain consumer spending.