Nike Lets Mbappé Walk; On Lands Its First Football Superstar

Nike chose not to renew its endorsement deal with Kylian Mbappé, clearing the way for the 27-year-old Real Madrid striker to sign with Swiss sportswear maker On, a person familiar with the matter told CNBC. The deal marks On's first signing in football and its boldest move yet beyond its core running business.

On announced the agreement Friday and paired it with a second hire: retired French star Thierry Henry joins as director of football. Together, the two appointments give the Zurich-based company an instant foothold in the world's most popular sport.

The split with Nike was a business calculation, not a fallout. Mbappé's contract expired in July, and Nike concluded it had already captured the prime years of his career, according to the person, who asked not to be named because the discussions were private. Nike decided to deploy its endorsement budget elsewhere. The timing matters: Mbappé will be 31 when the 2030 World Cup kicks off.

For Nike, the decision fits a broader reset under CEO Elliott Hill, who is trying to rebuild brand loyalty and restart product innovation. The company's sluggish sales, especially in China, have driven its stock down roughly 50% over the past year. Shedding one of soccer's most recognizable faces frees up capital at a moment when Nike is cutting elsewhere.

Mbappé's ties to the swoosh ran deep. He joined Nike in 2006, when he was still a child, and grew into one of sport's highest-profile stars. He is the all-time leading scorer for Paris Saint-Germain and the French national team, the all-time leading scorer in FIFA World Cup history, and he won the tournament with France in 2018.

In a statement, Mbappé said the chance to build something from scratch drew him to On.

"I want to bring my experience and perspective into what we create, push what's possible through innovation, and always stay true to the joy of football. We have a shared dream, and this is only the beginning," he said.

On framed the move as a challenge to the sport's established order. "Football doesn't need another sportswear brand to do more of the same," said David Allemann, founder and co-CEO of On, in a statement. "Football needs new ideas and a challenge to what is possible."

Nike, for its part, wished Mbappé well. "Over nearly two decades, we've shared moments that shaped the game and he has been an important part of Nike Football," the company said. "We are proud of what we achieved together on and off the pitch. As he moves into the next phase of his career, we wish him continued success for what comes next."

The Beaverton giant still fields a deep soccer roster, including Erling Haaland, Vinicius Junior, Alexia Putellas and Sam Kerr. Losing Mbappé dents that lineup but hardly empties it.

Wall Street is already skeptical of On's ambitions. Jefferies, in an analyst note assessing the company's move into football, warned that the category is among the most expensive to enter and that "performance credibility cannot simply be bought." The note drew an uncomfortable parallel: "We see parallels to [Under Armour's past partnership with Stephen Curry]: a star athlete who failed to establish the brand as a dominant player in the sport."

That comparison cuts both ways. Under Armour's Curry deal produced a signature franchise worth hundreds of millions annually, yet it never made the brand a basketball powerhouse. On faces the same test in soccer: converting one superstar's global reach into product credibility against Nike and Adidas, which have spent decades and billions locking down the sport's top clubs, federations and players.

The Mbappé bet also accelerates On's transformation from a niche running label into a full-line sportswear challenger. Henry's appointment as director of football suggests the company is building a management structure, not just a marketing face, around its new category.

For Mbappé, the deal offers something Nike could not: a seat at the founding table of a football division, with the chance to shape it. The next test arrives on the pitch, in retail, and in On's earnings — where investors will judge whether a running brand can score in football.