mbappe
Kylian Mbappé has signed with Swiss sportswear company On Holding, ending a relationship with Nike that began in 2006, when he was just 9 years old. Jose Jordan/AFP via Getty Images

Kylian Mbappé is leaving Nike after roughly two decades with the sportswear giant. Wall Street sent company shares lower while initially rewarding the company that lured away one of soccer's biggest stars.

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The Real Madrid forward and France captain has signed with Swiss sportswear company On Holding, ending a relationship with Nike that began in 2006, when Mbappé was just 9 years old. The agreement makes the 27-year-old superstar the centerpiece of On's expansion into soccer, a market long dominated by Nike, Adidas and Puma.

Mbappé told CNBC that he felt it was time to "change" after two decades with Nike. "I have to be part of the project, to be part of the journey with On and the football," he added. "As a player, you need to feel a special connection with your boot, with the ball, with the pitch, with the evolution of the game. Now you play 60 games in a season. You train every day. The intensity is high. You need to feel comfortable in your shoes."

"From the beginning, what drew me to On was the opportunity to build something entirely new together that will help shape tomorrow's game," Mbappé said Friday. The announcement weighed on Nike shares further. Stocks fell on Friday, compounding to the company's woes. They have plummeted more than 75% over the past 5 years.

Not all of Friday's decline can be attributed to Mbappé, however. Nike was already under pressure before the announcement, including news that it will be removed from the S&P 100 index on September 21. The company's has also been struggling through a much broader downturn after a dramatic sales drop in China, and investors wait for evidence that CEO Elliott Hill's turnaround strategy can restore stronger growth.

Still, losing Mbappé carries considerable symbolic weight. Nike had increasingly positioned him as one of the most recognizable faces of its global soccer business, particularly as longtime Nike ambassador Cristiano Ronaldo approaches retirement. Mbappé was also featured prominently in the company's soccer marketing and received signature versions of Nike's Mercurial boots.

On is preparing to enter soccer with its first football boots in 2027 and has appointed French legend Thierry Henry as director of football. Mbappé's agreement includes both cash and equity, although neither side disclosed the financial terms.

On shares jumped more than 4% at one point Friday following the announcement before giving back much of those gains.

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