Kylian Mbappe has ended his two-decade partnership with Nike and joined Swiss sportswear brand On, giving the fast-growing company a global football superstar as it prepares to enter a market dominated by Nike, Adidas and Puma.

The move is a major step for On, which built its reputation in running before expanding into tennis through its partnership with Roger Federer. The company plans to launch its first football boots in 2027, with former France star Thierry Henry serving as its director of football.

Mbappe, who has been associated with Nike since he was a child, will work with On's product teams on the development and testing of its football footwear and apparel. The deal includes cash and equity components, although On has not disclosed its value.

The partnership gives On an immediate presence in football through one of the sport's most recognizable players, but turning Mbappe's star power into sustained sales will be a far more difficult task.

Football is among the most fiercely contested categories in sportswear. Nike, Adidas and Puma have spent decades building relationships with clubs, national teams and players while investing heavily in product development and marketing. At the 2026 FIFA World Cup, Adidas sponsored 14 national teams, while Nike and Puma sponsored 12 and 11, respectively.

"Football is one of the most expensive categories to enter and performance credibility cannot simply be bought," Jefferies equity analyst Randy Konik said, arguing that the Mbappe deal shows On will need to increase spending to sustain its growth.

On's challenge comes as the company itself faces pressure to maintain the rapid expansion that has made it one of the sportswear industry's prominent challengers.

The company missed analysts' estimates for second-quarter net sales last month, raising concerns about slowing growth. Its Americas business, which accounts for more than half of its revenue, has also struggled amid uncertain consumer spending. On's shares have fallen more than 40% this year.

Still, On has continued to take market share from established rivals. Data from M Science showed the company gained share in the three months through August, while Nike continued to lose ground.

Its expansion into football therefore represents another attempt to find a new source of growth.

On has already used a similar strategy in tennis, where its partnership with Federer helped raise the brand's profile beyond running. Federer acquired an equity stake in On after joining the company in 2019, and the Swiss star has remained closely involved with its product development and marketing.

The Mbappe agreement similarly includes an equity component, creating a structure that goes beyond a conventional endorsement deal. The French forward will have a role in developing On's football products as the company builds its new category.

On says its LightSpray robotic manufacturing technology, already used in its running footwear, will be part of its approach to football boots. The company is positioning the technology and its engineering expertise as potential points of difference in a market where established brands have years of experience producing elite-level boots.

Yet industry analysts have warned that signing a superstar does not automatically create a successful football business.

Under Armour's partnership with NBA star Stephen Curry offers one example. The collaboration helped establish Under Armour in basketball, but the company did not replicate the cultural reach or commercial scale of Nike's Jordan Brand. Under Armour and Curry agreed to separate in 2025.

"The question is whether the deal is worth the cost, which is undoubtedly high," Morningstar analyst David Swartz said.

Nike, meanwhile, is losing one of its most prominent football ambassadors at a time when the company is attempting to revive its business.

Mbappe became a central figure in Nike's football marketing, particularly as Cristiano Ronaldo, another major Nike ambassador, moves into the later stages of his career. Nike has also recently lost Spain and Barcelona star Lamine Yamal to Adidas.

Nike said it was proud of its long relationship with Mbappe and wished him success in the next stage of his career.

Mbappe's departure is unlikely to transform Nike's fortunes by itself. Analysts said investors are more focused on the company's product innovation and broader turnaround strategy under CEO Elliott Hill, who has sought to refocus Nike on major sports including football and running.

Nike still retains significant strength in football. The company has extended its long-running agreement to supply France's national team kits through 2033-34 and remains one of the sport's dominant global brands.

For On, however, Mbappe represents something different: a chance to establish credibility in football before its first boots even reach the market.

The company has brought together Mbappe's global profile, Henry's football expertise and its product-development technology as it attempts to build a new category from scratch.

Whether that combination can challenge decades of Nike, Adidas and Puma dominance will depend on more than the visibility of one superstar. On must persuade players and consumers that its football products can perform at the highest level, while building the distribution, club relationships and cultural presence needed to turn a headline partnership into a lasting football business.