Nike pursues Umbro to take first place

Umbro's shareholders were on a roller coaster ride when they saw millions of dollars slipping away after England's loss to Russia and then went on an uphill ride after getting the news that Nike wanted to buy the replica kit manufacturer.

Nike wants to become the leading football brand by the time the South African World Cup rolls around in 2010.

Nike, a US sportswear company, began putting its efforts into football when the US hosted the World Cup for the first time in 1994.

Adidas had been the strongest football brand because of its connection with FIFA but Nike began taking a share of the market.

Last year, Nike was believed to be in third place when the World Cup was held in Germany, home to adidas, which is number one, and followed second place Puma.

Nike was willing to pay GBP 300 million to put an end to the 50 year partnership between the German football team and adidas, but the deal was rejected and it now looks like Nike may attempt a deal with England.

Umbro owns the trademark rights until 2014 for the white shirt with the logo attached. If Nike buys Umbro it will then become the leader in football shirt manufacturing.

Competitors are buying into the stock, such as JJB Sports, which bought a 10 percent stake on Friday. Mike Ashley's Sports Direct already owns 15 percent of Umbro.

One analyst estimated that adidas' global market share is 35 percent, Nike's is 30 percent and Umbro approximately 5 percent.

"They would come very close to becoming number one," admits an adidas executive.

Source: euFootball.BIZ © Copyright 2006 - All rights reserved.