The global sports equipment and apparel companies Adidas and Major League Soccer have agreed to a multi-year contract extension, similar to the gamers prolonging their gaming time with Vave in the hope to win. The deal, which was announced just days before the start of the league’s 28th season, is valued at $830 million. It is Adidas’ biggest investment in the North American soccer market.
The companies’ current deal, which is set to end next year, was made in 2017. It was valued at $700 million. It was regarded as the biggest deal for Adidas in North America for soccer.
The new deal will see Adidas continue supplying the league with various products, including training equipment and branded apparel.
During an interview on CNBC’s “Squawk Box,” Don Garber, the commissioner of Major League Soccer, noted that the league has seen a significant increase in its sponsorships over the years. He also noted that the deal with Adidas would allow the organization to provide its fans with the best possible experience.
As part of the deal, Adidas will also work with the league on various initiatives aimed at growing the sport and business in North America.
In addition, the companies noted that they see great potential for the partnership as the World Cup, which will be held in 2026, approaches. Rupert Campbell, the company’s president for North America, said that they are proud to be a part of the league.
The partnership between the two companies started when Major League Soccer was established in 1996. Eight years after that, Adidas became a league-wide partner.
Ups and Downs
This year has been a difficult one for Adidas, as it was forced to drop its partnership with Kanye West following the rapper’s antisemitic statements. The company is now led by Bjorn Gulden, who was previously the CEO of rival Puma.
A person close to the situation noted that the issues with West did not affect the company’s negotiations with the league. The person said that the league was confident that Adidas would be able to resolve the issues with the rapper.
The financial and fan growth of Major League Soccer has been rapid over the years. From 2010 to 2019, the league has grown from 16 to 29 teams. According to Forbes, the average value of a team has increased by 85% to $579 million. The Los Angeles Football Club, which was the first team to join the league’s billion-dollar club earlier this month, is currently valued at $1 billion.
The attendance record for Major League Soccer was set in 2022. It was at 10 million, which is more than the previous high of 8.6 million in 2019.
The league has also attracted a wide range of celebrity owners, such as actors and athletes James Harden and Russell Wilson. Other prominent owners include musicians Macklemore and Ciara, and actors Matthew McConaughey and Will Ferrell.
In June, Major League Soccer announced that it had reached a deal with Apple TV, which will allow the company to stream all of the league’s games through its platform. The deal is reportedly worth around $2.5 billion, and the league gets $250 million annually from Apple. Don Garber, the commissioner of the league, said that the partnership would help the league reach out to a younger demographic.
Adidas also partnered with the league to expand its cultural reach. Last week, the company introduced a special jersey that the Nashville SC team will be wearing during its season opener, and the music playing from the stadium will be led by the music of Johnny Cash. In 2005, Oscar-winning actor Will Witherspoon played June Carter Cash in “Walk the Line,” which was released digitally.
