Puma SE, a German sportswear giant, plans to conclude its sponsorship of the Israeli football federation by the end of 2024.
This move aligns with the company’s shift towards fewer but more high-profile partnerships.
Puma clarified that this decision, made in late 2022, is part of its new strategy, termed “fewer-bigger-better,” and is not influenced by the conflict in Gaza that started in October.
Despite facing boycott calls in some areas due to its association with Israel’s football team, Puma emphasized that the decision was strategically driven.
In line with its strategic overhaul, Puma is also allowing its contract with Serbia’s football team to lapse next year. Additionally, the company plans to announce two significant new sponsorships, including a “statement team,” later this year and in early 2024.
Arne Freundt, who became the company’s CEO in November 2022 following Bjorn Gulden’s move to Adidas AG, has been instrumental in shaping the company’s direction.
Freundt, a Puma veteran since 2011, has been steering the brand towards a more premium positioning, particularly in the U.S. market. This includes introducing higher-end soccer, basketball, and running apparel while gradually discontinuing lower-priced items.
Puma’s reassessment of its football sponsorships involved evaluating factors such as sales and participation in major international tournaments.
Notably, Israel’s football team has not qualified for the World Cup in over five decades. Puma also noted that the timing of this decision is typical for the design and development process of new team jerseys.
Following this announcement, Puma’s stock experienced an increase of up to 2.4%, although it has seen a 3.6% decline overall this year.
