Here’s How Roger Federer Leaving Nike Was the Best Business Decision He Ever Made

Roger Federer, for most of his very illustrious tennis career, has been a name synonymous with the brand Nike as well as Wilson and Rolex. For the longest time, fans saw Federer on the court, cruising through his matches in his Nike gear, with his RF logo, always elegant and impressive.

But in 2018, he announced he would not be renewing his 24-year long contract with Nike. Instead, he signed a massive deal with Uniqlo, a Japanese fast-fashion brand. Soon he also signed a deal with On Running for his shoes. While rumors were afoot that Federer would shift from Nike, he confirmed them by appearing on the court at the 2018 Wimbledon wearing Uniqlo gear.

Shift to Uniqlo pays off for Roger Federer

Federer’s 10-year contract with Uniqlo, signed in 2018, will benefit the swiss with $30 million per year. It will extend well beyond his playing years. This deal also does not have a withdrawal clause, which means that even if he retires from professional tennis, with years left on his contract, Uniqlo will still pay him a whopping amount of money. 

While there were mixed reactions about this move, Uniqlo is quite positive that given Federer’s popularity in the sports world, and even otherwise, they will be able to leverage that image.

Signing with On Running brand

There was, however, only one problem with this shift. Uniqlo did not produce tennis shoes for the Swiss master to play in. As a result, Federer continued to wear Nike shoes for some time, without being paid for them.

Also read: ‘My World Collapsed’: Rafael Nadal Describes What It Was Like Facing Roger Federer in One of the Best Grand Slam Finals Ever Played

“I don’t have a shoe deal. For now, I will be wearing Nike,” he said. “They have shown interest to have a shoe deal with me, as well. Ties are not broken there. I have deep roots with Nike. I’ve had a great relationship over the last 20 years. But everything is open. It’s very exciting also again to see what’s out there, who wants to do something with me.”

What proved to be a masterstroke, however, was the deal he signed with the Swiss On Running brand.

Roger Federer invested in this brand and took a 3% equity. On Running underwent a process of development and expansion, and announced Federer as their world ambassador. Two years later, On Running announced a market value of 10 billion dollars.

Nike, as per their revised policies, will be paying Federer $10 million annually, but now, with shift rebranding, the former world No. 1 has managed to make annual profits of about $600 million each year. If that was not the smartest business decision he’s ever made, it will be hard to say what was!

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