 "Twitter thread reveals Pele's role in rise of sports brands Puma and Adidas"){kind=tracking}
Brazilian football legend Pele, also known as The King, breathed his last on Thursday night at the Albert Einstein hospital in Sao Paulo due to multiple organ failures. The footballer had been undergoing treatment for colon cancer since 2021. The disease eventually emerged to be the actual cause behind his death. The tragic news has shattered the world of sports marking it a massive unassailable loss. While the planet is paying tribute to the three-time World Cup champion, sports journalist Joe Pompliano revealed an interesting story. He shared a long thread on Twitter explaining how Pele turned out to be the breakthrough for multi-billion-dollar companies of sports accessories - Adidas and Puma.
Pelé passed away today at 82 years old.
— Joe Pompliano (@JoePompliano) December 30, 2022
He was one of the world's most famous athletes and the only man to win 3 World Cups.
But my favorite Pelé story involves two brothers that became bitter rivals and a $120,000 payment that will be remembered forever.
Here's the story 👇 pic.twitter.com/C88SQy4lAz
The story takes us back to the year 1924 when the Dassler brothers from Germany - Adolf and Rudolf started a shoe business in their mother’s laundry room. They named the startup Dassler Brothers Shoe Factory, the only manufacturer of athletic shoes in the country at that time. They witnessed a huge surge in sales after “Adolf invented screw-in spikes.”
1) The story starts in 1924.
— Joe Pompliano (@JoePompliano) December 30, 2022
German brothers Adolf and Rudolf Dassler started a shoe company from their mom's laundry room.
It was called the Dassler Brothers Shoe Factory.
And as the sole manufacturer of athletic shoes in Germany, the brothers were onto something big. pic.twitter.com/c8wg3k72lT
In the mean of promotion, they approached sprinter Jesse Owens to sport the newly-designed shoes in the 1936 Berlin Olympics. The speedster came out to be phenomenal in the event winning as many as four track-and-field gold medals, a record that was left unbroken for another 48 years. Owens’ monumental success unquestionably boosted the sales of the Dassler Brothers Shoe Factory.
2) The company experienced early success, but sales took off when Adolf invented screw-in spikes.
— Joe Pompliano (@JoePompliano) December 30, 2022
The brothers then convinced sprinter Jesse Owens to wear them at the 1936 Olympics in Berlin.
And when he won 4 gold medals, sales exploded.
This is where it gets interesting... pic.twitter.com/CPmnxNFML2
With the company starting to grow, the relationship between the two brothers turned bitter. In 1943, Adolf pulled off a controversy resulting in the arrest of Rudolf by American soldiers. He was accused of “being a Waffen SS member — the military branch of the Nazi Party.” Rudolf got furious after coming to know that his own brother was responsible for this, making the conflict more bitter.
3) As the company began to grow, the relationship between the Dassler brothers deteriorated.
— Joe Pompliano (@JoePompliano) December 30, 2022
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.
They parted their ways in 1948 and set up separate outlets on opposite sides of the town. While Adolf’s company got the name “Adi-das” combining the first and last name of the new owner, Rudolf followed a similar pattern but finally decided upon “Puma.” Following the separation, the two brothers ended up being the major rival of each other in the shoe market.
4) By 1948, the brothers had broken up Dassler Shoe Factory, and they each set up their own shop on opposite sides of town.
— Joe Pompliano (@JoePompliano) December 30, 2022
Adolf named his new company “Adi-das”(a combination of his first & last name).
Rudolf tried a similar concept with ‘Ruda’ but eventually settled on Puma. pic.twitter.com/3Bt29iksQT
Both companies were doing good but all changed in the late 1960s. “Why? Pele, the world’s most famous athlete,” Pompliano noted in one of his tweets. Since the Brazilian footballer became a big name and had already won two World Cups, a war transpired between Adolf and Rudolf about which company would sign him as their ambassador. They finally came to a solution by signing a peace treaty named the “Pele pact” - a deal “not” to sign the player.
5) Despite splitting up and each running their own successful business, the Dassler brothers became bitter rivals and refused to ever do business together again.
— Joe Pompliano (@JoePompliano) December 30, 2022
But in the late 1960s, that all changed.
Why?
Pelé, the world's most famous athlete. pic.twitter.com/V7BxA7P0j1
However, ahead of the 1970 World Cup quarter-final between Brazil and Peru, Puma made a lucrative offer of $120,000 to Pele. As stated by Pompliano, “Puma requested Pele walk to midfield seconds before kick-off and ask the official for time to tie his shoes. To ensure they got a close-up, Puma even paid the cameraman.” The telecast made it all clear that “Pele was a Puma athlete.” A clip of the occurrence has also been attached to the post.
6) Athlete endorsements were becoming popular, so Adidas & Puma created the "Pelé Pact."
— Joe Pompliano (@JoePompliano) December 30, 2022
The idea was simple: a bidding war would bankrupt both companies, so they agreed neither company would sign Pelé.
But in 1970, Puma brokered one of the smartest marketing plays of all time.
8) As Pele approached midfield to tie his shoes, cameras zoomed in, and millions of people realized all at once:
— Joe Pompliano (@JoePompliano) December 30, 2022
Pelé was a Puma athlete.
The funniest part?
To ensure they got a close-up, Puma even paid the cameraman. pic.twitter.com/W2Z5oOVdO8
Pele went on to lift the prestigious World Cup trophy for the third time in 1970. Thus, Puma recorded a record annual sale and garnered worldwide popularity. As Rudolf broke the “Pele pact”, Adolf and Adidas were no doubt annoyed, leading to a more solid “sneaker war” between the two businesses.
9) While the structure of the deal technically circumvented the "Pelé Pact," Adolf Dassler & Adidas were pissed.
— Joe Pompliano (@JoePompliano) December 30, 2022
Pelé became one of the greatest footballers in history, and Puma saw record annual sales.
But this only further deepened the "sneaker war" between Adidas & Puma. pic.twitter.com/8tx5CzL2ps
10) Today, 50 years after Puma secretly signed Pelé, the citizens of their hometown, Herzogenaurach, take brand loyalty to new levels.
— Joe Pompliano (@JoePompliano) December 30, 2022
Shopkeepers favor one brand and refuse to serve customers wearing the other, regardless of the circumstances.
As they say, people don't forget.
Pompliano referred to another interesting tale in the end. He wrote, “Today, 50 years after Puma secretly signed Pelé, the citizens of their hometown, Herzogenaurach, take brand loyalty to new levels. Shopkeepers favour one brand and refuse to serve customers wearing the other, regardless of the circumstances. As they say, people don’t forget.” In recent times, Adidas and Puma are the leading sponsors of major sports teams around the world. While Puma holds the sponsorship of European giants like Manchester City, Borussia Dortmund and AC Milan, Adidas has joined hands with Arsenal, Manchester United, FC Bayern Munich and Juventus.
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