Breaking News
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% Upgrade now

Roger Federer Retires: How Tennis Star Bet Against Nike And Won Big

Stock Markets Sep 15, 2022 18:10
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. Roger Federer Retires: How Tennis Star Bet Against Nike And Won Big
 
NKE
-3.41%
Add to/Remove from a Portfolio
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
NIKE34
-2.66%
Add to/Remove from a Portfolio
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
ONON
-3.41%
Add to/Remove from a Portfolio
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 

Tennis legend Roger Federer announced his retirement Thursday (Sept. 15). Federer leaves the sport ranking third for men in Grand Slam titles and as one of the top earnings athletes ever.

What Happened: At the age of 41 and after competing in more than 1,500 professional matches, Federer announced he was stepping away from playing professional tennis.

“Of all the gifts that tennis has given me over the years, the greatest, without a doubt has been the people I’ve met along the way: my friends, my competitors and most of all the fans who give the sport its life,” Federer said.

The tennis star said the upcoming Laver Cup where he will compete for Team Europe alongside Rafael Nadal, Andy Murray and Novak Djokovic will be his last professional tournament.

“As many of you know, the past three years have presented me with challenges in the form of injuries and surgeries. I’ve worked hard to return to full competitive form. But I also know my body’s capacities and limits, and its message to me lately has been clear.”

Federer said he considers himself fortunate to be able to compete for so long and at a high level.

Related Link: 5 Things You Might Not Know About Tennis Star Rafael Nadal

Federer’s Earnings: In his professional tennis career, Federer has a record of 1251-275. Federer has earned $130.59 million in earnings from his professional tennis playing career.

With limited matches completed over the last two years, Federer’s earnings on the court were $0 in 2022 and $647,655 in 2021.

Federer saw his highest earnings from tennis coming in 2017 with $13.05 million, his only season over $10 million.

While his earnings from tennis of more than $130 million are impressive, Federer has made significantly more off the court.

Big Decision Pays Off: Federer was endorsed by apparel and footwear company Nike Inc (NYSE: NYSE:NKE) from 1994 to 2018. After earning around $10 million per year in the last 10 years of the Nike deal, Federer parted ways with the leading brand.

Federer later signed with Japanese apparel company Uniqlo in a deal reported at $300 million for 10 years. The new $30 million in annual earnings were significantly higher than the Nike deal and also came with two important factors.

The Uniqlo deal did not have a retirement clause, which means the $30 million annual payments last up until 2028 whether Federer competes or not. The deal also didn’t include the rights to shoes, which means Federer could wear whatever shoes he wanted.

Federer wore Nike shoes after the Nike deal expired before eventually switching to shoes from Swiss company On Holding AG (NYSE: ONON). Federer became a brand ambassador for On Holding and also acquired an equity stake of around 3%.

On Holding went public in 2021 at $24 a share, valuing the company at over $6.5 billion. Shares of the company traded up significantly higher on their first day of trading and surged before eventually trading down. The company now trades with a share price of $19.44 and a market capitalization of around $6 billion.

Federer’s 3% stake in On Holding is valued at around $180 million.

The Uniqlo deal and investment in On Holding helped Federer become one of the top earning athletes. The deals also came after walking away from Nike, a well-established brand and signing with two companies that didn’t have large presences in professional sports or tennis.

Federer was named the highest paid athlete of 2020 by Forbes with earnings of $106.3 million on and off the tennis court. In 2021, Federer ranked seventh on the list and was the top-earning tennis player at $90 million.

Federer has been the top earnings tennis player for 17 straight years according to data from Forbes.

Other endorsement deals for Federer include Rolex, Barilla, LVMH (EPA:LVMH) Moët Hennessy Louis Vuitton (OTCMKTS: LVMUY)-owned Moët Chandon, Wilson, Lindt, Credit Suisse (SIX:CSGN) Group AG (NYSE: CS) and Berkshire Hathaway (NYSE:BRKa) Inc (NSYE: BRKA)(NYSE: BRKB)-owned NetJets.

Photo: Kate Tann via Flickr Creative Commons

© 2022 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

Read the original article on Benzinga

Roger Federer Retires: How Tennis Star Bet Against Nike And Won Big
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email