Real Madrid's French forward #10 Kylian Mbappe looks up at
Real Madrid's French forward #10 Kylian Mbappe looks up at the ball during the Spanish league football match between Real Madrid CF and Rayo Vallecano de Madrid at Santiago Bernabeu Stadium in Madrid on September 12, 2026.

Swiss sportswear brand On Holding (NYSE: ONON) announced on September 18 that French football star Kylian Mbappé had joined the company, ending his nearly 20-year partnership with Nike, which began in 2006. An On spokesperson told CNN that the financial terms of the deal include cash and equity, but the specific terms and contract duration have not been disclosed.

Under the agreement, 27-year-old Mbappé will serve as a global ambassador and be directly involved in the development and testing of future football boots and apparel, including On’s LightSpray technology, which uses robots to spray the upper of a shoe. Former France international Thierry Henry is serving as football chief, and On said he had been working with the company since the end of last year. On co-founder David Allemann told The Athletic that the first football boots would be launched at retail in 2027. The company also plans to raise the profile of women’s football ahead of next summer’s Women’s World Cup and extend its partnerships with Barcelona and Swiss player Sydney Schertenleib. The Athletic reported that Mbappé could wear On boots in a match within weeks.

For Nike, the deal marks another loss of a star athlete in a short period. Reuters noted that Spanish star Lamine Yamal had recently switched to Adidas. On shares rose more than 4 per cent at one point in early US trading on Friday, according to Stocktwits, before paring the gain to about 0.15 per cent in the afternoon. Nike shares were quoted at US$36.30 early in the session, down about 0.4 per cent, according to Schaeffer’s. Nike’s stock has fallen more than 40 per cent so far this year, putting it at its lowest level in more than a decade.

Analysts offered differing views on the signing. Jefferies maintained its “underperform” rating and a US$20 price target, saying that signing a star does not automatically make a company the leading brand in the sport. It also said football is one of the most expensive categories to enter. Evercore ISI maintained its “outperform” rating and a US$40 price target, describing the football business as a potential near-term catalyst.

On is not a loss-making company. Its net sales in 2025 were 3.014 billion Swiss francs, up 30.0 per cent year on year, while its gross margin was 62.8 per cent. In the second quarter of 2026, net sales rose 13.5 per cent year on year to 850.3 million Swiss francs, or 21.6 per cent at constant exchange rates. Net profit was 105 million Swiss francs and the gross margin was 65.4 per cent.

However, quarterly sales were below market expectations, and the share price plunged 22 per cent on August 11, when the results were announced, falling to about a two-year low. The Americas, which account for more than half of revenue, grew by only 13 per cent at constant exchange rates, slowing from 17 per cent in the first quarter. On expects full-year growth of just over 20 per cent at constant exchange rates and said it would deliberately control shipments through the wholesale channel.

The football boot market has long been dominated by Nike and Adidas, while On has yet to launch a product in the category. The proportion of equity held by Mbappé, the vesting period and the potential dilutive impact on On’s share capital have not been disclosed.

Mbappé reportedly also opted not to join Puma. Puma’s shareholder structure is set to change: Anta Sports (2020.HK) announced in January that it would acquire a 29.06 per cent stake for €1.5 billion, making it the company’s largest shareholder. China’s State Administration for Market Regulation announced on September 11 that it had unconditionally approved the deal following its antitrust review. Anta said the transaction was expected to be completed by the end of the year, subject to other closing conditions.

Information still to be disclosed or followed up:

  • Whether On will provide further details of the equity terms.
  • Sales of the first football boots after their launch in 2027.
  • The company’s performance in the Americas and wholesale channel during the second half of the year.