On Holding secures Mbappé deal, intensifying pressure on Nike

Key points

• On Holding announced the partnership with Kylian Mbappé on September 18, 2026, ending his roughly 20-year association with Nike.
• Mbappé will serve as a global ambassador and collaborate directly with On’s product teams on footwear and apparel, including the use of LightSpray robotic manufacturing technology.
• The agreement includes both cash and equity components, though the specific financial terms and duration were not disclosed.
• On Holding is expanding its football division by appointing Thierry Henry as director of Football and deepening ties with FC Barcelona’s women’s team player Sydney Schertenleib.
• Nike shares are hovering near a 12-year low, with CEO Elliott Hill facing challenges from competitors like On and Adidas, which reported record revenue following the recent World Cup.

Background

On Holding previously faced a 22% stock drop in August 2026 after missing Q2 revenue estimates and trimming growth outlooks. Meanwhile, Nike shares had fallen to their lowest point since 2014 in August 2026, wiping out over $200 billion in market value from their 2021 peak due to weak direct-to-consumer sales and analyst downgrades. On’s strategy mirrors previous high-profile athlete switches, such as Lamine Yamal’s move to Adidas, aiming to capture market share in the football-dominated sector.

How outlets are covering it

CNN emphasizes the strategic significance of On’s move into the football apparel space, noting that the deal represents a direct challenge to Nike and Adidas. The outlet highlights On’s expansion beyond running shoes into training and tennis, citing its partnership with tennis star Ben Shelton. Yahoo Finance frames the Mbappé deal as a 'direct challenge' to established giants, focusing on the competitive implications for Nike’s struggling brand momentum. ESPN’s source was inaccessible due to a server error, providing no additional perspective. The outlets agree on the financial structure involving equity but differ in emphasis: CNN focuses on the broader market encroachment, while Yahoo Finance highlights the specific competitive threat to Nike.

Why it matters

The Mbappé deal signals a shift in the sports footwear landscape, with On Holding aggressively targeting the football market to counter Nike’s declining market share. This move could accelerate Nike’s turnaround challenges, as the brand faces competition from both Adidas and emerging players like On. For investors, On’s success in this category may determine its ability to sustain growth after recent earnings misses, while Nike’s continued decline raises questions about its long-term brand relevance.

What to watch

On Holding plans to launch football boots in 2027, followed by kits and lifestyle products, leveraging Mbappé’s involvement in product development. Nike must address its 12-year low stock performance and competitive pressures from Adidas and On. Investors will watch On’s Q3 earnings to assess the impact of the Mbappé deal on revenue and margins, while monitoring Nike’s efforts to reverse its downward trend in direct-to-consumer sales.