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Last March, the German national team caused reactions, not for its competitive behavior, but for its…appearance. For the first time in 70 years, the German Football Association (DFB) has decided to leave Adidas and from 2027 to be dressed, for the next seven years, by the American Nike. It is said that for this commercial agreement DFB will be paid double the price that Adidas was giving.

This is a cross-section as, if nothing else, Adidas is part of modern football history in Germany. Many remember that in 1954, the German sports goods company had played a decisive role in the victory of the “Nationale Mannschaft” in the muddy (due to the weather) pitches of Switzerland, as it had provided the German players with football boots with screw caps that ensure better “hold”. on heavy terrain. With the help of the innovative technology for that time, Germany gained an advantage against Hungary’s Puskas, who was theoretically the favorite in the final in Bern. In the following decades, the cooperation of the German National Team with Adidas developed into a permanent symbiosis.

Nike and BYD dominate the game

And now suddenly comes Nike? Many football fans, but even politicians in office expressed their indignation at the new customs. “It is wrong to destroy traditions by trade” said the Social Democrat Minister of Health Karl Lauterbach, while even the “green” Minister of Economy and Vice-Chancellor Robert Habeck wanted to intervene to remind that “Adidas and national colors go together, they are element of German identity”.

Only a few weeks passed, until the next “shock” came: The main sponsor for motoring at Euro 2004 in Germany will be the Chinese car manufacturer BYD, which provides the organizers with a whole fleet of electric vehicles. China’s BYD instead of Mercedes or Volkswagen? Normally the news shouldn’t come as a surprise. After all, there is the precedent of the 2006 World Cup, again on German soil, when the corresponding sponsorship was undertaken by the Korean Hyundai. Despite this, everyone is keeping a fishy silence about the deal with BYD. The German Football Association did not want to answer a related question from DW, referring to the headquarters of the World Football Association (FIFA) in Nyon, Switzerland.

But even there the question was not answered. The only answer was a short list of five sponsors of the event: Adidas who “will provide balls and sports appearances for volunteers and partners”, Atos who takes over the IT sector, BYD with electric vehicles, Coca Cola “who will protect fans, volunteers and officials from dehydration’ and Deutsche Bahn (DB), which has ‘specially priced’ tickets for travel within Germany.

Adidas, the most famous sponsor

Research by the University of Hoffenheim under the auspices of Professor Markus Voth, published recently, points out that the best-known sponsor is Adidas. 56% of respondents in Germany know that the company supports the event. In contrast, says Professor Vaught, “only 3% of respondents are aware of the sponsorship activity of companies such as Betano and Atos”.

The expectation that a major sports event in Germany should also have sponsors coming from Germany is probably “unrealistic”, economist Henning Feppel, director of the Freiburg-based Center for European Policy, tells DW. As he says, “the market for consumer goods extends all over the world and the Euro is a sporting event of global scope, therefore it is logical that the sponsors also address a global market. The globalization of the economy and the commercialization of football go hand in hand.”

But by what criteria is the decision made, by which a sponsor is approved or rejected? As the German economist explains, “Here UEFA decides on two main criteria: Who offers the most for us? The logical consequence.” is that five sponsors of the event come from China. Of course, the sponsor does not look forward to immediate collection, but to a strategic investment, which strengthens his recognition in the market he is interested in.

How does Henning Feppel comment on the “changing of the guard” from Adidas to Nike for the German national team? “It certainly makes sense for a longer-term commitment in order to develop trust and consolidate the value of the brand,” he points out. “After a point, however, the benefits dissipate, and that’s when there’s movement in the market.”

Secrecy about the money

But why is there so much secrecy about the financial value of a sponsorship?There are many possible reasons. First, many sports clubs are organized as non-profit organizations and therefore pay minimal taxes. They often make it a condition for participation in major events, such as Euro 2004 in Germany, that their income is not taxed in the host country.

Another reason is that many sports fans may be bothered by the huge amounts of sponsorship money. Even the prices for fan memorabilia are particularly high, because, as marketing expert Peter Rohlmann explains on WDR television, “the emotional charge is so strong, it overrides rational thinking about the pricing of the product.”

But is it good for businesses to have so much money for sponsorship? Here is the saying of the legendary Henry Ford, who said that “50% of what I spend on advertising is wasted money. But I don’t know which 50% that is…” However, Marcus Voth, who has conducted a related research, claims that “only 12% of the respondents buy products and services based on the sponsorship of the European Football Championship”.

Edited by: Yiannis Papadimitriou