Soccer star Kylian Mbappé has ended his long-standing endorsement partnership with Nike, choosing to sign a new deal with Swiss sportswear company On. This marks On’s debut entry into the global football market, a significant move for the brand as it strives to expand beyond its traditional running segment. French football icon Thierry Henry has also joined On as director of football, adding further prestige to the company’s fresh foray into the sport.

Nike opted not to renew Mbappé’s contract after it expired in July, deciding to allocate its endorsement budget elsewhere. The decision reportedly reflects the company’s view that they had benefitted from Mbappé’s prime career years, as the 27-year-old will be 31 at the start of the 2030 World Cup. This shift comes amid Nike’s broader turnaround efforts under CEO Elliott Hill, with the brand facing sluggish sales, especially in China, contributing to a nearly 50% stock decline over the past year.

Mbappé, who has been with Nike since childhood, expressed enthusiasm for joining On, highlighting the opportunity to collaborate on innovation and to bring a new perspective to football gear. On co-CEO David Allemann emphasized the company’s aim to challenge existing norms and inject fresh ideas into football sportswear, contrasting it with Nike’s established dominance that includes endorsements from stars like Erling Haaland and Vinicius Junior.

Analysts at Jefferies cautioned that entering the football market demands substantial investment and credibility that cannot be bought solely through athlete endorsements, citing parallels with Under Armour’s unsuccessful endeavor with basketball star Stephen Curry. Meanwhile, Nike acknowledged Mbappé’s contributions over nearly two decades and wished him success as he embarks on this new chapter with On.