Roger Federer’s dispute with Nike saw him become first billionaire in tennis
This is the story of how the 20-time Grand Slam champion Roger Federer and Nike's 24-year old deal came to an end and made the Swiss legend a billionaire in return.
Follow Us
Roger Federer and the Nike brand (Image Credit: Wallpaper.com)
Roger Federer is one of the greatest athletes in the world. He won numerous Grand Slam titles, ATP titles, and other tournaments. He is probably also the most loved athlete and tennis player of all time. But more than his successes on the court he was equally good at striking deals which made him the first tennis player to hit the $1 billion mark.
The Swiss Legend had a long association with Nike. The American apparel giant struck a deal with then 13-year old Roger Federer and hence became one of his initial sponsors.
“He was up-and-coming, one of the top juniors. We brought him on and I realized right off the bat that he’s naturally charismatic and speaks well. And I noticed that he knew he was going to be great,” Former Tennis director at Nike Mike Nakajima, who worked with Roger Federer for many years said.
As Roger Federer kept on winning Grand Slam tournaments, his clout increased. Soon, he became one of the richest tennis players in the world who at his prime was earning more than $100 million a year. By 2018, he was getting $10 million a year from his sponsor Nike alone every year. He asked Nike to double his remuneration in the annual sponsorship deal, however, they declined to increase it.
Keep Exploring: “Would love to play together,” Nick Kyrgios expresses his interest in playing doubles with Holger Rune
Roger Federer’s business brain was on display after the end of deal with Nike
Nike already had many tennis superstars in its contract which included- Serena Williams, Rafael Nadal, and Maria Sharapova. However, in the summer of 2018, he ended his deal with Nike and Japanese apparel giant Uniqlo closed a deal with him worth a whopping $300 million on a ten-year contract. This meant the 20-time Grand Slam singles title champion henceforth, earned $30 million every year.
But the two most important highlights of this deal were that the company would pay the Swiss maestro the same amount of money even though he may not play a single match in the entire tour. Also, he could retire at any time and still there would not be any dent in his earnings. Besides this, the contract explicitly suggests that the deal is done for only the apparel but not for shoes.
Hence, Roger Federer continued wearing Nike shoes and invested his money into a Swiss sports shoes manufacturer On and become its brand ambassador. On went public with a $10 billion valuation and the Swiss legend’s stake was worth $300 million. This means that he earned $600 million with both deals.
Roger Federer is one of the most marketable athletes in the world
Public trusts Roger Federer and the companies know this. He has a mass appeal that can help to appreciate any brand’s value. Hence, many companies associated with the Swiss Legend during his playing days. Rolex, Nike, Wilson, UniQlo, Credit Suisse, and Louis Vuitton are some of the popular names which take pride in being associated with the eight-time Wimbledon champion.
A career spanning more than 24 years came to an end in 2022 when he decided to retire from professional tennis. He played his last match with old rival Rafael Nadal in the Laver Cup 2022 as a doubles pair against Frances Tiafoe and Jack Sock in London. He did not play even a single match in the whole season. However, he still took a whopping $90 million home in pre-tax earnings last year.
Even after retirement, his public image and appeal is still strong in the minds of the people. Hence, after retirement he has been invited in many events to celebrate his achievements. Lately, he has also given interviews reminiscing his journey.
In case you missed it:
Emma Raducanu made the face of Dior’s iconic hand bag campaign
Stay Updated!
Abhar Indorkar
(451 Articles Published)