Athletes Build Brand Equity

Steph Smith discusses how athletes and celebrities often miss opportunities for long-term wealth by focusing on immediate earnings rather than building equity. She uses Magnus Carlsen, the world chess champion, as an example of someone who successfully built a business empire alongside his competitive career.

Key Points:

• Business Strategy for Athletes/Celebrities:

  • Most focus on getting paid fees in the moment
  • Often struggle to build equity in products or brands
  • Real wealth accumulation comes through equity ownership

• Magnus Carlsen's Success Story:

  • Became a chess grandmaster at age 14
  • Currently 31 years old
  • Built business empire while still competing
  • Created Play Magnus company (play.magnus.com)
    • Offers $14/month membership
    • Publicly traded company
    • 250 employees
    • 4 million registered users
    • $115 million market cap
    • Owns 85% of the business

• Key Differentiators:

  • Started young while still at peak of career
  • Maintained competitive career while building business
  • Combined personal brand with scalable product
  • Retained significant ownership stake

• Business Model:

  • Subscription-based service
  • Leverages personal brand and expertise
  • Public company trading in European market (FRA)
  • Built sustainable revenue stream beyond competition earnings

This approach demonstrates how athletes/celebrities can transform their temporary fame and skills into lasting business value through equity ownership rather than just collecting fees.