Kickoff is approaching for the FIFA World Cup in the United States, Mexico and Canada. It looks like a super event. For the first time in history, three nations are co-hosting the tournament. For the first time, 48 instead of 32 teams will compete. 104 matches are on the schedule, more than ever before. That means more fans, more jerseys and, in the best case, strong World Cup sales. At least that's what the big sportswear companies are hoping for. Adidas, Nike and Puma together kit out more than three quarters of all national teams. I'm looking at an underdog instead.

BasicNet is the fourth listed kit supplier at this tournament. Its brand Kappa is dressing the Tunisian national team. One team out of 48, and no contender for the title. Tunisia sits at 28th in the current betting odds. But if I had to pick one of the kit suppliers as an investor, my clear favorite would be BasicNet. Anyone who invested in BasicNet at the start of 2006 has since earned an average annual return from price gains and dividends of almost 15 percent. Nike delivered around 9 percent over the same period, Adidas just under 8 percent, and Puma a mere 2 percent. Past performance guarantees nothing. But it tells you that this company must have been doing something right. Which brings me to the business model, one that convinces me more than anything the big sportswear players have to offer.

BasicNet has built a licensing network spanning more than 130 markets. The licensees take care of production and distribution.The company itself focuses centrally on product development, marketing and an internet-based IT platform that runs the entire value chain. Revenue comes from licensing fees and its own direct business in Europe. Production costs and inventory risk stay with the licensees. BasicNet does not carry them.I see that as a structural advantage over the competition.

Then there is the brand strategy, which is fundamentally different. While Nike, Adidas and Puma are constantly chasing the next fashion trend, BasicNet bets on heritage brands. The brands have deep roots: Woolrich was founded in 1830, Superga in 1911, K-Way in 1965, Kappa in the 1960s. In an era where vintage and retro define the zeitgeist, that pays off.

Structurally, BasicNet benefits from its asset-light model and the heritage brands are less dependent on trends. BasicNet also deliberately spreads production across multiple suppliers in different regions, which reduces tariff exposure. But risks remain. Earnings are volatile. At the operating level, the company runs at a loss. Heavy investment in sponsoring, marketing and brand development is a constant drag.

BasicNet continuously invests in building brand value, which it monetizes over time. The partial sale of a 40 percent stake in K-Way to Permira in 2025 generated a book gain of around €140 million. The Italians are less a conventional licensor and more a brand developer, with a fundamentally different risk and return profile that depends heavily on brand disposals. Volatile moves are part of the nature of this stock. If you can live with that, BasicNet is an alternative to the big sportswear names. I think it's the better one.

Is BasicNet a buy? At current prices, I consider BasicNet the most attractive of the listed World Cup kit suppliers. The asset-light licensing model keeps inventory and production risk with its licensees, and the heritage brand portfolio is less trend-dependent than Nike, Adidas or Puma. The main risk is earnings volatility: BasicNet runs at an operating loss and depends heavily on brand disposals for profit. This is not a stock for investors who need stable earnings. It is a stock for investors who can sit with volatility.

Disclaimer: This newsletter is for informational purposes only and does not constitute investment advice. I am not a financial advisor. Always do your own research before making any investment decision.

Disclosure: I may hold direct or indirect positions (including options) in any securities mentioned in this newsletter. My opinions are my own and always honest.