Wed Jun 28, 2006 09:31 AM BST
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By Ulf Laessing
FRANKFURT (Reuters) - German sports goods firm Adidas-Salomon AG is ahead of rivals as sponsor of successful nations at the football World Cup after the second round, giving a boost to sales prospects of replica shirts and other goods.
Adidas sponsors top teams Argentina, Germany and France qualifying for the quarter finals, whereas rivals Nike Inc and Puma AG sponsor two teams and one team respectively in this weekend’s matches.
The stakes are high in the competition with sports goods firms spending millions of euros sponsoring teams to bolster their brand and lift sales of products such as jerseys and footwear.
The longer a team stays in the tournament, the more fans see company logos and may be tempted to buy replica merchandise.
Nike saw sales of Brazil jerseys surging after its partner team beat Germany in the 2002 World Cup final, while Adidas’ Greek jerseys were sold out for days following the country’s win of the European Championships in 2004.
Puma was top supplier at the start of the Cup, but except for Italy all of its 12 teams, among them the Czech Republic, have dropped out. Out of its five African teams, only Ghana qualified for the second round, to be beaten by Brazil.
Adidas, which claims to be global market leader for football gear, has been the games’ top supplier for decades. Its three teams in the quarter finals include Argentina, a hot candidate to win the championship, though several of its teams, including European champions Greece, failed to qualify.
Adidas is also providing match balls and kitting out referees and other match officials.
Out of Nike’s teams, only Brazil and Portugal have survived so far, with the Netherlands, Mexico and Australia all failing in the second round.
Analysts say deals with key teams such as Germany, England and Brazil help boost sales.
Industry sources say a deal with a top team costs a double-digit million euro amount annually, while small teams such as Trinidad & Tobago are almost free.
Teams that underperform risk losing their sponsorship deals. Adidas terminated its cooperation with Saudi Arabia after it made an early exit at the 2002 World Cup and suffered an embarrassing 0-8 defeat to Germany.
Following is a list of teams being sponsored by sports goods firms at the World Cup in Germany after the second round:
ADIDAS
Germany Three-time World Champion
Argentina Twice World Champion
France 1998 World Champion
NIKE
Brazil Five-time World Champion
Portugal
PUMA
Italy Three-time World Champion
UMBRO
England 1966 World Champion
LOTTO
Ukraine
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