Nike suffers a significant 2.3% drop at the close of the markets: this is how Mbappé's departure to On affects it after nearly 20 years of relationship
The New York Stock Exchange does not open on Saturdays, so the reference is Friday, September 18's closing price
K ylian Mbappé announced this Friday, September 18, his departure from Nike and his arrival as the public face of On's project for the football industry. The American brand and the French player had been linked for more than 20 years. Leaving aside LeBron James and Cristiano Ronaldo, pillars of the project because of their longevity and status, Mbappé was the brand's most recognizable face.
It cannot be claimed that Mbappé's departure has dealt a heavy blow to Nike, since the company was already going through financial troubles. According to Reuters, the company is trading near 12-year lows. In other words, its shares are hovering around $36. In addition, it should be taken into account the drop in sales they are facing this year.
Thus, this Friday, September 18, Nike fell sharply, by approximately 2.3%. It should be noted that the New York Stock Exchange is not open on Saturdays, which means that to see the real impact of Mbappé's departure, we will have to wait until Monday the 21st. Nevertheless, this drop already shows certain financial weaknesses of the company. Reuters believes that, just as On's rise may be related, the market does not seem to have interpreted the departure as a major financial blow.
Mbappé's departure puts Nike at a crossroads
The consequences of Mbappé's departure from Nike can be seen from two different perspectives. On the positive side, the company will have greater room to maneuver to invest in other stars and significant savings in sponsorship costs . On the other hand, it must be taken into account that it has an impact on the sale of boots and merchandising , in addition to losing a key figure in the sports industry.
It should also be taken into account that the Real Madrid footballer had not announced his departure from Nike (though not his arrival at On) until this Saturday, September 19. “Nike has been part of my life since I was a child. I w as 7 years old when this story began. At that age, I had many dreams… but of course, I could never have imagined everything we would experience together,” he says in part of this statement.
