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0 The greatest marketing deal in sports history. The story of two rivals Adidas and Puma dated back to 1970 involving one of the greatest footballer Pele. A Twitter thread by Joe Pompliano about building a massive multi-billion dollar business.
The greatest marketing deal in sports history happened 50 years ago.
This is the story of how two brothers became bitter rivals, built multi-billion-dollar businesses, and why a $120,000 payment will be remembered forever.
Time for a thread 👇👇👇
— Joe Pompliano (@JoePompliano) February 19, 2021
1) First, some history…
In 1924, German brothers Adolf and Rudolf Dassler started a shoe company from their mom’s laundry room, Dassler Brothers Shoe Factory.
As the sole manufacturer of athletic shoes in Germany, the brothers knew they were onto something big. pic.twitter.com/VB5UZS6WtV
— Joe Pompliano (@JoePompliano) February 19, 2021
2) Shortly after launching the company, sales took off with Adolf’s invention of the screw-in spikes.
Even better?
Adolf convinced sprinter Jesse Owens to wear them at the 1936 Berlin Olympics.
Owens won 4 gold medals & sales exploded.
This is where it gets interesting… pic.twitter.com/6sQcuAzuML
— Joe Pompliano (@JoePompliano) February 19, 2021
3) As the company began to grow, the relationship between the Dassler brothers deteriorated.
In 1943, American soldiers picked up Rudolf, accusing him of being a Waffen SS member — the military branch of the Nazi Party.
Certain his brother turned him in, Rudolf was furious.
— Joe Pompliano (@JoePompliano) February 19, 2021
4) By 1948, the brothers had broken up Dassler Shoe Factory — each setting up their own shop on opposite sides of town.
Adolf named his new company “Adi-das” as a combination of his first and last name.
Rudolf tried a similar concept with ‘Ruda’ but eventually settled on Puma. pic.twitter.com/0rOFzIsZyG
— Joe Pompliano (@JoePompliano) February 19, 2021
5) Despite splitting up and each running their own successful business, the Dassler brothers became bitter rivals — refusing to ever do business together again.
But in the late 1960s, that all changed.
Why?
Pele, the most famous athlete in the world. pic.twitter.com/dva40SPnIs
— Joe Pompliano (@JoePompliano) February 19, 2021
6) As athlete endorsements became popular, Adidas & Puma created the “Pele Pact.”
Through the Pele Pact, both parties agreed not to sign Pele — believing a bidding war would bankrupt them both.
But in 1970, Puma brokered one of the smartest marketing plays of all time.
— Joe Pompliano (@JoePompliano) February 19, 2021
7) Before a 1970 World Cup quarter-final match between Brazil & Peru, Puma approached Pele with a $120,000 offer — or almost $1M once adjusted for inflation.
The kicker?
Puma requested Pele walk to midfield seconds before kick-off & ask the official for time to tie his shoes.
— Joe Pompliano (@JoePompliano) February 19, 2021
8) As Pele approached midfield to tie his shoes, cameras zoomed in, and millions of people realized all at once:
Pele was a Puma athlete.
The funniest part?
To ensure they got a close-up, Puma even paid the cameraman. pic.twitter.com/VnUxfU3O2q
— Joe Pompliano (@JoePompliano) February 19, 2021
9) While the structure of the deal technically circumvented the “Pele Pact,” Adolf Dassler & Adidas were pissed.
Pele went on to become one of the greatest footballers in history and Puma saw record annual sales.
In the end, the “sneaker war” between Adidas & Puma deepened. pic.twitter.com/z4UOy6Yq3E
— Joe Pompliano (@JoePompliano) February 19, 2021
10) Today, 50 years after Puma secretly signed Pele, the citizens of their hometown, Herzogenaurach, take brand loyalty to new levels.
Shopkeepers favor one brand and refuse to serve customers wearing the other, regardless of the circumstances.
As they say, people don’t forget.
— Joe Pompliano (@JoePompliano) February 19, 2021
11) In the end, I like this story for one simple reason:
It shows what ambition, determination, creativity, and a hint of insecurity can push people to accomplish.
The best part?
With Adidas and Puma now multi-billion-dollar companies, it ended up working out for everyone. pic.twitter.com/5AhagmJCEA
— Joe Pompliano (@JoePompliano) February 19, 2021