Formula One is no longer just about cars, drivers, and race tracks. It has become a global lifestyle phenomenon, drawing some of the biggest names in fashion and sportswear. Now another major player could be preparing to make its mark on the sport. 

The new player in question is Nike. According to reports put out by Adam Stern on Sports Business Journal, Nike executives reportedly held talks with Formula One management about the partnership during the Miami Grand Prix earlier this year. 

While nothing has been confirmed, the talks are said to cover both sponsorships and licensing, a combination that could open the doors for Nike to enter the sport after nearly 20 years. 

Stern further reported via Sports Business Journal that the deal with Nike could further complicate the existing deal they have with Puma, which already has a long-standing relationship with Ferrari. But Nike is no stranger to the Maranello-based team. 

Nike’s relationship with Ferrari started back in 1996 after they made the seven-time Formula One World Champion Michael Schumacher his racing boots when he first joined the team.

However, this partnership lasted only till 2002, when FILA took over making the boots for Schumacher.  

Ever since, Nike has been out of the sport, with rival brands like Puma and Adidas taking over. While Puma has a strong relationship with Ferrari, Adidas has partnerships with Mercedes and Audi. 

For now, Nike’s return to the sport remains speculative, as neither Formula One nor Nike has made any official statements confirming the news. 

What does the rumored deal with Formula One mean for Nike? 

For Nike, right now the deal with Formula One seems like a night in shining armour, as they are currently facing one of the toughest financial stretches in the brand's history. 

As per the reports put out by Stern in the same Sports Business article, Nike’s stock has dropped by 76% in the last five years. Whereas it has been a whole different story for Formula One. 

The sport has been enjoying a great amount of success over the last five years, as it has seen a surge in the liberty media/F1 stock by 111%.

Much of this growth has been credited to the Netflix series 'Drive to Survive ', which has helped boost the commercial success of the sport, particularly in the US. 

With Nike’s stock struggling and pressure mounting, this rumoured move to Formula One could be more than just a branding opportunity. This raises the question: is this a bold swing taken by Nike CEO Elliott Hill to turn around the brand's fortune? 

Written by

Chionia Libania Colaco