Kylian Mbappé Joins On as Brand Launches Ambitious Soccer Division

Swiss sportswear brand On is making a bold move into the competitive world of soccer, and it's doing so by aligning with one of the sport's brightest talents: Kylian Mbappé. Announced on Friday, this partnership coincides with the official launch of On's football division, setting the stage for a seismic shift in the realm of soccer sponsorship.

As part of this initiative, On revealed that French icon Thierry Henry will serve as the director of football. Henry, a World Cup winner and one of the all-time greats, has been involved with the company since late 2025, contributing his expertise behind the scenes. Alongside him, Sydney Schertenleib of FC Barcelona will also play a vital role, enhancing On's push into this new category.

The company's ethos shines through with its statement: “On is bringing a fresh perspective to football—that the game is more beautiful when you can focus on the simple joy of play, enhanced through product innovation and meaningful connections with communities around the world.” This philosophy speaks to the heart of soccer, a sport often overshadowed by commercialism and overwhelming competition.

End of an Era with Nike

For Mbappé, this signing represents a significant departure from a relationship with Nike that began at age 9. His evolution from a promising youth prospect to a global superstar has been closely intertwined with the brand, which leveraged his rise during France’s triumphant World Cup campaign in 2018. Nike acknowledged the end of this partnership, expressing pride in their collaboration and wishing him success in this new chapter.

The timing of this transition isn’t just personal for Mbappé; it’s a hard blow for Nike, which has been grappling with a concerning decline in market share. With shares falling more than 50% in the past year, this latest loss adds to the company's struggles. Compounding this situation, Nike is set to drop from the S&P 100 list, reflecting a tumultuous period for the sportswear giant.

Strategies in a Crowded Market

On's entry into the soccer market is ambitious, considering that the company was founded only in 2010 and has historically concentrated on running, tennis, and lifestyle footwear. Analysts are cautiously optimistic about this strategic move, highlighting that while soccer is heavily dominated by established powerhouses like Nike and Adidas, it holds different dynamics compared to the fragmented running shoe market where On has thrived.

Evercore ISI analysts noted that the soccer category could be a boon for On. They suggested that this investment might act as a short-term positive catalyst for the company's stock. Shares showed a minor uptick following the announcement, pointing to a degree of excitement surrounding Mbappé's involvement. However, the analysts also pointed out the potential challenges On faces, especially regarding profit margins in low-gross categories like soccer cleats and fan merchandise.

On’s headway into soccer won’t be without hurdles. Analysts have expressed concerns that entering such a costly sector may require a recalibration of their gross margin expectations, which have seen positive upward trends in previous quarters.

Market Risks and Comparisons

Not everyone shares the optimism reflected by Evercore. Analyst Randal Konik from Jefferies cautioned against placing too much confidence in celebrity partnerships alone, likening the situation to Under Armour’s association with Stephen Curry, which ultimately did not establish a strong foothold in basketball. Konik posits that football is among the toughest categories to penetrate, where performance credibility can’t simply be bought.

He also highlighted that while On has carved a niche in premium performance running shoes, it recently missed earnings expectations in the second quarter of this year. This situation implies that the company is seeking alternative avenues for growth as the running sector matures and becomes saturated.

Looking Ahead

As On embarks on this exciting yet daunting journey into soccer, the stakes are high. The success of this venture will depend not only on how well they can leverage Mbappé's star power but also on meticulously executing in a landscape dominated by established competitors. Should they navigate these waters successfully, On has the potential to expand its footprint in sports, but caution remains warranted as they adjust strategies to suit this challenging environment.

The coming months will be pivotal for On as it transitions into a fully-fledged player in the soccer realm, making it essential to keep an eye on their innovation, product offerings, and how well they resonate with the global football community.