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How Roger Federer Became The First Tennis Billionaire (#367)

From My First Million · Published Jul 5, 2023 · Watch on YouTube

TL;DR

The episode covers Roger Federer's path to becoming a billionaire athlete—90% of his wealth came off-court via a $300M Uniqlo deal and a 3% equity stake in On Running worth ~$300M at peak. It contrasts his delayed-gratification approach with other athletes (LeBron, Floyd Mayweather) who also bet on themselves via equity deals and vertical integration.

Key insights

  • Federer's earnings: ~$130M prize money; ~$90M/year in sponsorships during final year; $300M Uniqlo 10-year deal (pays even after retirement); 3% of On Running worth ~$300M at peak.
  • He deliberately went without a shoe deal for three years (wearing Nike for free) to wait for an equity-based offer from On Running.
  • Federer moved upmarket with sponsors (Mercedes, Rolex, Lindt) instead of mass-market (Coca-Cola, McDonald's).

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