Puma set to be top WC supplier, replacing Adidas which expects growth

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German sporting goods company Puma, which recently announced a rise in fourth quarter profits, will boast more sponsored teams at this summer’s World Cup than any other company. Twelve teams will wear Puma kits, replacing Adidas as the top supplier.

Puma and Adidas are two of several companies that will spend considerable sums to supply and sponsor teams, trying to gain a foothold in the competitive sporting goods market. Adidas had been the leader in sponsored teams for decades at past World Cups, but experienced some bad luck with teams such as Greece not qualifying for the finals. As FIFA’s official sponsor, however, Adidas will supply the game balls, and supply referees, linesmen and ball boys with sportswear.

Analysts say sponsoring key teams such as Germany, England or Brazil and host nations of major events will help boost sales of soccer products, but they warn against overspending. Analysts expect some sponsorship changes at smaller teams that cost firms much less than big teams like Brazil, which usually have long-term contracts.

Adidas made an announcement confirming that the company expects significant sales increases this year, buoyed by the summer’s WC. An Adidas spokesman said the company expects football-related merchandise to exceed EUR 1 billion this year.

Adidas had sales of more than EUR 900 million in 2004, year of the European Championships in Portugal. The spokesman added that Adidas expects to sell more than 1.5 million football jerseys of teams it is sponsoring at the Cup, including more than 500,000 German jerseys. When Germany lost to Brazil in the finals of the 2002 World Cup, Adidas sold 250,000 German jerseys. Adidas also expects to boost its market share of football boots in Germany by 4 percent to 51 percent. Additionally, Adidas plans to boost its worldwide market share to 35 percent at the end of June.

Adidas is the market leader in football products, with Nike and Puma gaining. Both rivals have invested heavily in football products and secured more sponsoring contracts with World Cup teams than Adidas, which dominated previous events

A list of teams being sponsored by sporting goods firms at this summer’s World Cup: PUMA: Italy Three-times World Champion, Czech Republic, Poland, Switzerland Co-host of European Cup 2008 (with Austria), Paraguay, Saudi Arabia, Ivory Coast, Ghana, Tunisia, Togo, Angola, Iran. NIKE: Brazil, Netherlands, Portugal, Croatia, Mexico, USA, Australia, South Korea. ADIDAS: Germany, France, Argentina, Japan, Spain, Trinidad & Tobago. UMBRO: England, Sweden. LOTTO: Ukraine, Serbia-Montenegro. MARATHON: Ecuador. JOMA: Costa Rica.