Five years after his last singles match, Federer's brand is still among the strongest in sports, built on a Nike breakup, a $300 million Uniqlo deal and an early bet on On.
Roger Federer retired from singles play five years ago, but his commercial value has not faded. The 20-time Grand Slam champion, now 45, is still one of the most bankable names in sports, and the choices he and his team made during and after his career explain why.
 |
| Roger Federer, who retired from singles play five years ago, remains one of sports' most valuable brands. |
An emotional Hall of Fame night
Federer was inducted into the International Tennis Hall of Fame in August at a ceremony in Newport, Rhode Island. He was visibly emotional as he described his speech as a "love letter to tennis." He was introduced by his wife, Mirka, whom he called his "coach, hitting partner and stylist."
"My time as a player is done, but tennis will always stand at the intersection of everything I care most about," he said. He added that the future he is building with his family and friends means "this is not a goodbye."
The Laver Cup shows his continuing influence
This week's Laver Cup at the O2 Arena in London is a good example of that influence. Federer helped create the event through Team8, the management company he co-founded with his agent, Tony Godsick. Since its launch in 2018, it has become a regular part of the tennis calendar and a commercial success.
Federer's involvement has helped the event grow, even though he no longer plays. Its best-remembered moment is still the 2022 edition in London, his final event before retiring. He played doubles there and then held hands with longtime rival Rafael Nadal as both wept.
Some of Federer's long-time sponsors have also attached themselves to the Laver Cup. According to the source reporting, that has helped turn it into a profitable event that is increasingly popular with players on tour.
A strategy built before retirement
Forbes estimated last year that Federer had become a billionaire, making him only the seventh athlete to reach that mark. The report notes that investment performance has since put him slightly below that figure. He was also estimated to be the world's highest-paid athlete as recently as 2020, ahead of soccer stars Cristiano Ronaldo and Lionel Messi.
Misha Sher, founder of athlete marketing firm One Not Many, said Federer planned for retirement well before it arrived. "Federer built for life after tennis before tennis was over," Sher said. In his view, Federer's commercial appeal never depended entirely on winning, and he approached his career "like a business person" rather than an athlete looking to add endorsements to his income.
Leaving Nike, then landing Uniqlo and On
For 24 years, Federer wore Nike, including in all 20 of his major singles titles. His personal "RF" brand sat alongside the company's lines built around Michael Jordan and Tiger Woods.
That ended after about 12 months of talks over an extension. Godsick, speaking last year on Andy Roddick's "Served" podcast, said Federer did not walk away. "Nike kind of left him," Godsick said, adding that the two sides were trying to re-sign and that Federer would have stayed.
Federer then signed a 10-year apparel deal with Japanese retailer Uniqlo. Godsick said Nike declined to match it. The contract is reportedly worth $300 million, includes a role for Federer in the design process, and is scheduled to run through 2028.
The Uniqlo deal left footwear open, and Federer turned to On, the Zurich-based company founded in 2015. Mirka was a fan of the brand before he was. Rather than take a standard endorsement fee, Federer bought a 3 percent stake in the company.
On went public on the New York Stock Exchange in 2021. Federer's stake, which was bought for an estimated $50 million, is now worth roughly $273 million. That is nearly three times what he earned in prize money as a tennis professional and more than he received during his two decades with Nike, according to the source reporting.
On has continued to grow. It has signed tennis players such as six-time Grand Slam champion Iga Swiatek and Ben Shelton, this year's U.S. Open runner-up, to head-to-toe deals. French soccer star Kylian Mbappe is set to be the face of a new On soccer cleat line in 2027. The company also laid out financial targets to investors on Tuesday that project at least $6.83 billion in net sales through 2029.
Steve Martin, a founding partner at sponsorship agency MSQ Sport and Entertainment, said Federer showed younger athletes the value of thinking about equity instead of a fee. Other retired tennis players, including Serena Williams, Maria Sharapova and Andy Murray, have become investors too. But the source reporting says Federer's decision to make On a centerpiece of his portfolio is unusual. It also says On's success does not depend on his investment, though few would dismiss his influence on it.
Sponsors who stay
Federer's other partners include Mercedes-Benz, Rolex, UBS (which acquired Credit Suisse in 2023), Moet & Chandon and Lindt. Godsick said last year that Federer has 13 sponsors and that most have been with him for more than 20 years. "He outlives some of the management at these brands," he told Roddick.
Martin said this puts Federer in a different position than most stars. In his words, Federer can filter the offers that come to him, rather than a commercial team chasing brands to sign him. Martin also said Federer "transcended the game of tennis."
Why it matters
Sher said the Laver Cup could turn out to be one of the most important parts of Federer's legacy after his playing days. He said many athletes focus on trophies, while Federer understood he would eventually retire and built toward that while he still had huge cultural relevance.
Post a Comment