DASSLER

In the summer of 1936, at the Olympiastadion in Berlin, the newborn Germany was charming the entire world with its power and prowess—only three years after the economic and social disaster of the Weimar Republic and the fall of the century-long Hohenzollern dynasty.

During the economic boom under new political leader Adolf Hitler, a humble yet ingenious shoemaker from Bavaria—the same hometown as the Führer—seized a unique opportunity to showcase his athletic footwear on an international stage: Adi Dassler convinced American sprinter Jesse Owens to wear his “Dassler Spikes.” Little did he know, he was positioning his tiny workshop for international recognition and creating a global brand. Owens won four gold medals at the Berlin Olympic Games: it was a triumph not only for the American athlete but also for the Dassler company, proving the quality of their shoes and sparking global interest. A gigantic brand was born. Soon after, the company changed its name to Adidas.

The story of Adidas—one of the world’s most iconic athletic brands—begins in a small town: Rudolf Dassler was born in 1898 in Herzogenaurach, then part of the Prussian Empire, to a middle-class family. Two years later, a brother was born: Adolf, a name that would become fateful in the country’s history. This Adolf, however, was never called by his baptismal name - everyone nicknamed him “Adi.”

In 1919, Prussia—once their homeland and an empire for centuries—collapsed: Germany had lost World War I, the emperor went into exile, and a republic was established. The newborn German state was grappling with the punitive aftermath of the Treaty of Versailles, a severe economic depression, and widespread social unrest. In these turbulent times, the two brothers founded a shoe manufacturing company with the most unpronounceable name: Gebrüder Dassler Schuhfabrik—German for “Dassler Brothers Shoe Factory.” It was soon shortened to Geda. The dire post-war economic conditions created the fertile ground for a Bavarian politician's rise to power: Hitler. Both brothers joined the Nazi Party in 1933, the same year Hitler was appointed Chancellor.

In 1924, Rudi and Adi began crafting shoes in a washroom-turned-workshop inside their mother’s home. They would go on to revolutionize athletic footwear. Adi, fascinated by sports, dedicated himself to designing shoes that would enhance athletic performance. He was the creative genius in the family, while Rudolf, charismatic and commercially minded, focused on marketing and sales. It was the perfect duo.

As Hitler’s regime gained momentum, German industries faced increasing pressure to align with Nazi ideology. During the 1930s, the National Socialist Party emphasized physical fitness and athleticism as ideals of Aryan superiority. This national push for athletic excellence presented a unique opportunity for the Dasslers’ growing shoe company. The regime’s focus on sports made athletic equipment a priority, and the Dasslers secured government contracts to supply shoes to sports organizations across Germany.

They found early success, culminating in the 1936 Olympics. Yet this success was controversial: the image of a Black American athlete defeating Hitler’s ideal of Aryan supremacy stood in stark contrast to the nationalism that permeated Germany. The Reich and its secret police, the Gestapo, were not overly concerned—after all, both brothers were party members. Their sponsorship, one of the first in sports history, proved pivotal: it established Dassler footwear as a premium athletic brand, and demand for their shoes skyrocketed. By 1939, when Hitler invaded Poland—triggering World War II—the Dassler factory was producing thousands of shoes annually and had gained a reputation for quality and innovation.

Geda’s activity was put on hold throughout WWII, as Rudolf was drafted into the German army, and the factory itself was converted to weapons production. After the war ended—alongside another German defeat—Rudolf returned to work, and Geda resumed operations.

But things were no longer the same. Tensions between the Dassler brothers grew irreparably. The exact cause of their rift remains unclear, but many theories exist. During the war, both brothers had joined the Nazi Party—like many German businessmen, to ensure survival—but their allegiances eventually damaged their relationship. Family gossip points to strife between their wives, who didn’t get along yet were forced to live in the same villa. Rumor has it Rudolf grew increasingly suspicious that Adi had orchestrated his conscription and brief imprisonment by the Allied Forces—perhaps even reporting him to the Americans. This accusation created an unbridgeable divide. In 1948, the same year the UN adopted the Universal Declaration of Human Rights, the Dassler brothers cut all ties. The family was broken forever.

The split led to the creation of two separate companies. Adi Dassler founded “Adidas” (a portmanteau of his name), while Rudolf established a rival company across the river from Adidas’s headquarters. It was initially named “Ruda” (a shortening of Rudolf Dassler) but was soon rebranded as Puma.

The divorce was complete and deep. Geda’s workforce and assets were split: Adidas kept the factory near the train station and retained two-thirds of the employees—most of whom preferred Adi’s focus on product innovation over Rudolf’s sales-centric approach. Rudolf took the factory on Würzburger Street and the remaining staff. The town of Herzogenaurach itself became divided, with residents fiercely loyal to either Adidas or Puma—some even refusing to speak to those associated with the other brand.

This rivalry spurred fierce competition. Adidas came to dominate football, while Puma emerged as a leader in running shoes.

In 1954, Adi celebrated a major success: the West German national team wore Adidas boots in their stunning “Miracle of Bern” victory at the FIFA World Cup. The boots featured revolutionary screw-in studs that allowed players to adapt to varying field conditions—highlighting Adi’s inventive genius. Germany’s victory transformed Adidas into a household name, synonymous with football excellence.

Through the 1960s and 1970s, Adidas expanded its product range to include various athletic footwear and apparel. The iconic three-stripe design, initially created for shoe reinforcement, became a symbol of athleticism and style—firmly embedded in popular culture. Over the next three decades, the Dassler brothers’ brands grew into sportswear giants, signing deals with megastars like Muhammad Ali and Joe Frazier. Adidas led the race, with Puma close behind.

As Adidas expanded commercially, its financial success skyrocketed. By the time of Adi’s death in 1978, Adidas had become an empire. His son, Horst, inherited leadership in Europe, while his mother Käthe managed operations in Germany. Rudolf had died in 1974; the brothers were buried at opposite ends of Herzogenaurach’s cemetery. Not even death reconciled them.

Horst, a visionary like his father, created the swimwear brand Arena in 1973. But his business style was different: he understood the power of sports sponsorships, forming deep ties with athletes and organizations to ensure Adidas’s market dominance. This strategy led to lucrative partnerships—Adidas became the official supplier of both the FIFA World Cup and the Olympics. By the early ’80s, the Dassler family’s wealth was estimated in the hundreds of millions.

Yet Horst’s reign wasn’t without controversy. Known for his influence within the IOC and FIFA, he allegedly orchestrated exclusive contracts and backdoor sponsorship deals, raising ethical concerns. He was closely linked to FIFA president João Havelange, with whom he reportedly convinced Coca-Cola to become the first corporate sponsor of the World Cup—for 8 million dollars.

These rumours ended with Horst’s untimely death from cancer in 1987. At the time, Adidas was the world’s largest sportswear brand, with products in 40 countries. But his death left a power vacuum: Horst’s children, Suzanne and Adi Jr., were deemed unfit to take over. Meanwhile, a challenger from Seattle was emerging — Nike.

Following Horst’s death, Adidas lost its footing. Still owned by the Dassler family, it struggled against Nike’s aggressive marketing—especially through basketball star Michael Jordan and the new “Air” line. Adidas’s market share shrank. In 1989, the Dassler family surrendered.

French industrialist Bernard Tapie bought Adidas for $240 million, ending Dassler family ownership. Though he promised to revitalize the brand, legal troubles and scandals soon undermined Adidas’s image.

In 1993, Adidas was sold again—this time to French businessman Robert Louis-Dreyfus. As CEO, he restructured the company and quadrupled revenues to €5.84 billion by 2000, before stepping down due to illness.

Adidas thrived once more. In 2006, it acquired American brand Reebok. Today, Adidas boasts annual revenues exceeding $20 billion. The company’s HQ remains in Herzogenaurach, where it all began 100 years ago.

Even decades after the Dasslers' deaths, the town still reflects the rivalry—families work at Adidas or Puma factories, loyal to one brand or the other. That rivalry continues to fuel innovation. The Dassler family may be gone, but their legacy lives on: their descendant Horst Bente runs a Berlin-based sports accelerator that has helped 15 startups shape the future of sport.