On signs French football star Mbappé, delivering another knock for Nike

CNN — New York (CNN) — French football star Kylian Mbappé has signed a new sponsorship deal with sportswear brand On, following the end of his roughly 20-year relationship with Nike.

The Swiss-based company announced Friday that Mbappé will become a global ambassador for On and "work directly with On's product teams" on footwear and apparel. This marks a significant entry for the company into the growing football apparel space that has long been dominated by Adidas and Nike.

Mbappé, who at just 27 years old is the World Cup's all-time goal scorer, will bring his "elite perspective" into the development and testing of future football products, including On's Lightspray technology that makes shoes with the help of robots.

The length of the deal wasn't disclosed, but an On spokesperson told CNN that the financial agreement includes both cash and equity components.

On was founded in 2010, but grew in recognition when Swiss tennis star Roger Federer became an investor in 2019. The brand, initially known for its running and marathon shoes, then expanded into training and tennis shoes. The company represents Ben Shelton, who was a finalist at this year's US Open.

Signing Mbappé, who currently plays forward for Real Madrid, signals that On is looking to further encroach into its larger competitors' territory.

During the recent World Cup, Adidas outfitted Spain and Argentina, both finalists, as well as manufactured the tournament's balls. The German company recently reported record revenue, driven by sales of football jerseys during the month-long tournament.

Nike, however, has been less than fortunate: Its shares are hovering around a 12-year low as it deals with a series of problems that CEO Elliott Hill hasn't been able to fix, including customers shopping at trendier brands like On.

On is planning to shake up the football category, writing in a press release that it's "bringing a new energy to the culture that surrounds it."

To do that, On also signed Thierry Henry, another French legend, as its new cirector of Football. It also expanded its relationship with Sydney Schertenleib, a Swiss soccer player that plays for FC Barcelona's woman's team.