Adidas, a giant in the sports market, faces a challenging situation, recording its first loss in three decades, totaling 58 million euros. This negative result is largely attributed to the drop in sales in the United States, where retailers face difficulties with high inventories.
Furthermore, Adidas suffered another blow when it lost its long-standing contract with the German national football team to competitor Nike. The German Football Association has chosen to end a historic partnership lasting more than seven decades, mainly motivated by financial reasons. The contract with Nike will begin in 2027 and extend until at least 2034.
In Brazil, Flamengo, one of the main clubs sponsored by Adidas, is taking advantage of the situation to press for better contractual conditions. With the current contract running until 2025, the club rejected an initial offer from the German company in search of a more advantageous deal. Currently, Adidas pays around R$69 million per year to Flamengo.
Meanwhile, Italian company Legea entered the dispute by offering Flamengo a record contract worth R$100 million per season, the biggest offer ever made in Brazilian football. This move puts even more pressure on Adidas to guarantee a renewal with Flamengo, which is part of the select group of six main clubs sponsored by the German brand.
Flamengo stands out on the international stage, appearing alongside giants such as Arsenal, Bayern München, Juventus, Manchester United and Real Madrid in the Adidas rankings. With an average of 2 million shirts sold per year, the Rio club is looking for a contract that reflects its status and potential in the Brazilian and global sports market.
The partnership between Adidas and Flamengo
Uniting one of the biggest global sports brands with the most popular club with the biggest fans in the world, the partnership between Adidas and Flamengo is a great success. Since the beginning of the agreement in 2013, this collaboration has been marked by the development of uniforms that respect the tradition and history of the Rio club, while incorporating innovative technologies and designs. In addition to outfitting players, Adidas also caters to Flamengo’s vast fan base by offering a wide range of licensed products ranging from official shirts to themed accessories.
