Adidas vs. Puma: The $20 Billion Argument

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Friends,

Outside of news, analysis, and personal opinion on the money and business behind sports, I also enjoy telling short summaries of some of the most unknown (and fascinating) stories in sports business history.

Today, we’ll do just that.

Here’s one of my favorites…

Adidas and Puma are two of the largest and most culturally relevant companies in sports, each worth over $10 billion today.

The part you didn't know?

An argument between two brothers led to the creation of two separate companies, each worth over $10 billion.

Let’s start in 1924…

German brothers Adolf and Rudolf Dassler started a shoe company from the laundry room in their mother’s basement.

They called it “Dassler Brothers Shoe Factory.”

Adolf (“Adi”) Dassler was a quiet craftsman who designed the shoes, complemented by his older brother Rudolph (“Rudi”), an extroverted salesman.

As the sole manufacturer of athletic shoes within Germany, the Dassler Brothers immediately saw strong sales.

Even better?

When Adolf invented the revolutionary screw-in spikes.

The brothers big break came at the 1936 Berlin Olympics when Adolf convinced American Sprinter Jesse Owens to run in their shoes.

Owens won 4 gold medals, and the brand became an international success with sales exploding to 200,000 pairs a year before the outbreak of WWII.

It was during WWII, and shortly after, that the relationship between the brothers and their wives began to falter. The exact cause is unknown but rumors range from stealing to resentment, and even affairs.

The most popular theory of this rift dates back to a 1943 Allied bomb attack.

Upon entering a shared bomb shelter with Rudolph and his family, Adolf yelled “Here are the bloody bastards again” referring to the warplanes.

Due to his insecurity, Rudolf took this personally.

After their argument, Rudolf was picked up by American Soldiers accusing him of being a member of the Waffen SS — the military branch of the Nazi Party organization.

Although impossible to prove, Rudolf was furious and certain that his brother had turned him in.

By 1948, the brothers had broken up Dassler Shoe Factory, and each set up their own shop on opposite sides of the Aurach river.

Adolf named his new company “Adi-das” as a combination of his first and last name. Rudolf tried a similar concept with ‘Ruda’, but settled on ‘Puma’.

The brothers rivalry deepened over time, fueling a fight for footwear supremacy.

Even citizens of their town, Herzogenaurach, took brand loyalty to new levels. Shopkeepers would favor one brand and not serve customers wearing the other - a tradition that still exists today.

Fast forward 70 years, Adidas and Puma are now both multi-billion dollar companies that are just as relevant and powerful as ever.

This little-known story just shows what ambition, determination, and a hint of insecurity can push people to accomplish.

Ps. If you enjoyed this short story, make sure you follow me on Twitter — I detailed this story via Twitter thread in August.

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