Nike and Adidas: The International Trade during the FIFA World Cup

The 2026 FIFA World Cup, set to be the biggest tournament yet with 48 participating countries, will make history as the first to be hosted across three nations: the United States, Canada, and Mexico. This global event is expected to captivate more than six billion people, surpassing any previous World Cup viewership.

Two major players in the sportswear industry, Adidas and Nike, are expected to seek visibility during this marketing bonanza. The FIFA World Cup serves as the biggest stage for companies selling jerseys, and these two brands are most closely tied to the tournament.

In the past, the World Cup year has proven to be a significant period for both companies. Soccer revenues for Nike and Adidas rose by 21% in the World Cup year of 2014. Sales tied directly to the occurrence of a match get a quick boost during the tournament for both brands.

The marketing costs for Nike and Adidas are incurred immediately and before the tournament. The combined performance of Adidas and Nike has historically beaten the market around World Cups, despite individual slips. Owning both Adidas and Nike stocks during the World Cup may provide exposure without the need for guesswork about which brand will perform better. A 50/50 split of Adidas and Nike stocks may provide protection from a win-lose or a lose-win situation in the context of the World Cup.

The official German suppliers of jerseys for the 2026 FIFA World Cup include Adidas, a major German sportswear manufacturer based in Herzogenaurach, known for outfitting many football teams and providing official match balls for multiple World Cups. JAKO, another German sportswear company, supplies kits to various clubs, but there is no direct confirmation it is an official World Cup supplier.

The broader ripple effect from brand recall distills into financials over the course of a year after the final whistle for Nike and Adidas. The end date for every strategy was fixed at one year after the World Cup end date. The starting point for the analysis could vary from one year before the tournament to the day it ended.

It's important to note that the securities discussed in this article do not trade on a major U.S. exchange, so readers should be aware of the associated risks.

The 2022 World Cup saw more than five billion people watching some part of the FIFA World Cup. As we approach 2026, it's clear that the tournament will continue to be a significant event, not just for football fans, but also for companies like Adidas and Nike.

In conclusion, the 2026 FIFA World Cup promises to be a major marketing opportunity for Adidas and Nike, with the potential for significant financial gains for investors who strategize appropriately.