After Kaizer Chiefs did not renew their sponsorship contract with Nike that spanned just over two decades, Soccer Laduma looks at the reasons behind the separation.
Chiefs will have a new technical sponsor and licensing partner, Italian sportswear company Kappa from the 2023/24 season after they opted not to renew their contract with Nike, which expires at the end of the season.
Read: Kappa: We'll Make The Best Kits Chiefs Ever Had
Amakhosi were sponsored by the American sportswear giant since the year 2000 and the Glamour Boys Marketing Director Jessica Motaung shed some light on why they parted ways with the famous swoosh brand.
"So very proud with an association with Nike and to finish our relationship with them at the end of the season... But certainly like any partnership," Motaung tried to explain the reasons behind the separation in an interview on Metro FM Sports.
"First of all, a very long partnership. I'm very proud that we're able to retain our sponsors for a very long period of time, in terms of contracts.
"But certainly in terms of the TV changes, these things do happen, industry strategic alignment, Nike may be going in another direction, we also might be going in another direction," she said.
Soccer Laduma broke the story in edition 1295 that Chiefs had reached a deadlock in negotiations with Nike over a new contract and new players in the sportswear manufacturing space, British premium sportswear brand Castore in particular, were monitoring the developments closely.
Amakhosi eventually reunited with Kappa, and Motaung went on to suggest that their vision with Nike was no longer aligned.
"And I think you take time to evaluate the relationship when you're going through it and we decided we needed to take a different direction," she carried on.
"All of us are evolving and we definitely looked at where we want to go and this was the decision to make," she added.
Read: A Closer Look At Chiefs' Past Kappa Kits And Successes
Interestingly, Barcelona, who have also been sponsored by Nike since 1998, are in an impasse with the American sportswear giant over the renewal of a new contract. According to Spanish publication Marca, Blaugrana and Nike have been operating without a contract since 2016 and were using a pre-contract agreement over the last number of seasons due to their differences over the rights fee.
Nike are reportedly paying the Catalan giants a fixed fee of €105 million per season, with variables that can take the figure up to €155 million.
However, the deadlock in negotiations is due to the fact that Nike, as per Marca sources, believes that they are paying Barca an over the market price, while Blaugrana are holding out for more money (reports subsequently emerged that the partnership could come to an end when the season concludes, with competitors like Puma mooted as potential replacements).
That could have been the case with Chiefs, where Nike were possibly not prepared to pay a certain figure, particularly after the Covid-19 pandemic and Amakhosi have also not won a trophy in seven years.
The Glamour Boys initially lost financial services company Hollard as a sponsor last year, following the devastating effects of the Covid-19 outbreak.
With the Nike contract expiring at the end of the season, Amakhosi were entitled to explore their options for a better deal and Kappa came with a better offer that suits both parties.
You must be SIGNED IN to read and post comments.
