BLOOMBERG
(Bloomberg) — Puma SE will end its sponsorship of Israel’s football federation after 2024 at a time when the German company is focusing on fewer and more higher-profile partnerships.
The decision is unrelated to the war in Gaza that began in October and was made late last year as part of Puma’s new “fewer-bigger-better” strategy, the company said in an emailed statement. The brand has faced calls for boycotts in some markets over its support for Israel’s team.
The Israel Football Association said in a statement that it had the option to extend the contract to 2026 but chose not to do so.
As part of the new approach, Puma is also letting its contract with Serbia’s football team expire next year and will introduce two newly signed sponsorships — including a “statement team” — later this year and in early 2024, it said.
Chief Executive Officer Arne Freundt took over leadership of Puma in November 2022 after his predecessor, Bjorn Gulden, became CEO of crosstown rival Adidas AG.
Freundt, who joined Puma in 2011, helped to develop the company’s strategy under Gulden. Since taking the top job, he has moved to reposition Puma as a higher-end brand, focusing on the US market. That includes introducing higher-priced soccer, basketball and running sportswear and phasing out cheaper products.
As part of its new strategy, Puma reviewed its roster of national football programs, considering metrics including sales and participation in major international tournaments. Israel hasn’t qualified for the World Cup competition in more than 50 years.
The timing of the decision is normal when it comes to designing and developing new team jerseys, Puma said.
The stock was little changed Tuesday afternoon in Frankfurt, having already dropped 5.4% this year.
The Financial Times earlier reported on Puma’s decision to end the Israel sponsorship.
(Updates with statement from the Israel Football Association)
©2023 Bloomberg L.P.
