Only six players in the history of the world have earned Millions 1 billion in their careers. Roger Federer is the first to do that from tennis. However, Federer has not been able to win any Grand Slam since 2016. He has not played in all the Grand Slams in the last two years due to injury. But it did not have any effect on income. How?
Analyzing the business and financial aspects of the game world is the brainchild of Joe Pompliano. Every day, he presents some amazing financial stories of the game world on his own website. It was there that he wrote about Federer’s financial prudence as the first male player to win 20 singles Grand Slams. Let’s find out the story of how Federer managed to secure a guaranteed income of Crore 800 million when he couldn’t make a 10 million annual contract.
Federer had to make a decision in 2016
Federer had a 20-year contract with sportswear maker Nike. But when he went to renew his sponsorship contract in 2016, things got a little messy. Many big stars in the world of tennis had contracts with Nike. All the well-known names like Serena Williams, Rafael Nadal, Maria Sharapova and Nick Kirias were then under contract with Nike. And there is an unwritten rule in the world of sponsorship that no more than 10 percent of income can be spent on sponsoring players.
Nike themselves have not exceeded that limit. Nike ended its relationship with 36-year-old Federer. The fruit? Federer surprised everyone by signing a contract with clothing manufacturer Uniclo.300 million in 10-year contract. Nike paid one million dollars a year, three times that! But the rest of the story is still a lot.
The contract with Uniclo had two special conditions. One, there was no retirement condition here. This means that even if he retires, there is no problem, Federer will get 30 million dollars a year for 46 years. Two, the contract was only for clothes, there was no mention of shoes.
If there were no sponsors for the shoes
Federer would wear Nike. But one day in practice he got acquainted with the brand ‘On Running’. Federer made a big bet. Not only did he become a goodwill ambassador for his brand in Switzerland, but he also bought some of its ownership. All in all, Roger Federer became the owner of 3 percent of this brand. Funny thing? The brand entered the stock market two years later and currently has a market value of one trillion dollars.
This means that Federer’s stake in the company is now worth cores 300 million.
In other words, in 2016, Federer’s contract with Nike was 10 million dollars a year. Since he did not have a contract, Federer made two decisions, the current value of which is Crores 600 million. In Bangladeshi value which is 5 thousand 136 crore rupees. Considering a 40-year-old player is not bad!
Federer has created a unique brand in the player world. Federer played only one tournament last year, but has made Crores 90 million this year. Only six people in the world have earned more than him in all types of sports. Of this Crores 90 million, only Millions 3 million is income from tennis.
Federer’s financial foresight, of course, seems to benefit people. He has spent more than Crores 1.5 billion to open more than 80 schools in Africa. Corona spent ১০ 1 million to ensure that 84,000 African children did not go hungry.