Federer's Business Portfolio

A story about how Roger Federer built his billion-dollar empire through strategic business decisions, particularly around sponsorship deals.

"Federer has made $130 million from official prize money from tournaments with 20 grand slam wins, but most of his money comes off the court. Early on, he wasn't getting paid much even when he was the best player. They would pay Andy Roddick more because he was American and they thought Federer, being Swiss, wasn't as marketable.

In 2018, when his Nike contract was up, instead of just renewing, he shopped around. Uniqlo offered him a 10-year deal worth $300 million that would pay him even after retirement. He went back to Nike, they wouldn't match it, so he left. But he knew Uniqlo doesn't make shoes, so he kept wearing Nike shoes for free for 3 years.

Then he did a shoe deal with On Running, a Swiss company. Instead of taking cash, he took equity - 3% of the company. When On Running went public, at its peak his stake was worth $300 million.

He then took matters into his own hands - started his own representation company, his own player management firm, and created his own tournament. He went upmarket with sponsors like Mercedes Benz, Rolex, and Lindt chocolate instead of mass market brands. Through all these moves, he's built an empire worth over a billion dollars, with 90% of it coming from off the court."