Roger Federer and Tiger Woods are behemoths of their respective sports. Their legacy and popularity transcend tennis and golf, respectively, making them two of the most globally marketable athletes. There have been rumors recently in the United States that Woods will be ending his association with Nike.
When asked to comment on the same, Woods did not comment much on it except that he is still wearing Nike apparel (via Golf Digest). The sporting giant has played the biggest role arguably in the golf legend’s career. Roger Federer too started his career with Nike. The Swiss star, however, switched to Japanese company Uniqlo in 2018.
Federer’s last Nike contract was the biggest-ever for a tennis player. The apparel giants are renowned for scouting high-potential athletes at a young age and tying them down to their stable early on. Following that blueprint, they signed Federer in 1994, when he was only 13. As he grew leaps and bounds on the court, so did his contract off it. Eventually, he put pen to paper on a bumper renewal in 2008.
Nike and Federer shook hands on a 10-year, $100 million deal, meaning the athlete would receive $10 million annually. He soon got his personal line under the now-famous RF logo. The deal ran out in 2018 and instead of renewing, the former World No.1 signed with Uniqlo on an agreement three times bigger. However, for the first two years of the $300 million, 10-year contract, Federer did not own his RF brand. He acquired it from Nike only in 2020.
Woods was also with Nike since turning pro in 1996 at 20. His initial contract was worth $40 million over five years. He renewed it in 2001 for $100 million over five years, the biggest sponsorship contract at that time. Nike stumped up a third renewal, twice as big, offering the golfer up to $40 million annually for the next eight years.
However, Woods’ off-field controversies and recurring fitness issues took a toll on the size of his fourth and the current extension. In 2013, he agreed to a 10-year, $200 million contract, which is set to expire at the end of this year.
Federer’s bumper deal with Nike, the biggest tennis has ever seen, was superseded by Woods’ second extension itself. Even the American’s current contract has bigger numbers than Federer’s deal, despite being on much reduced terms than his previous ones.
Eventually, Roger Federer earned on an estimate, anywhere between $200-250 million, considering other bonuses and stock holding options as well.
With new sponsors, Roger Federer potentially surpasses Tiger Woods’ Nike income
Overall, Tiger Woods is estimated to have minted over $500 million, accounting for all fulfilled and unfulfilled bonuses, from his lucrative association with Nike. While Roger Federer cannot hold a candle to Woods if only those earnings are considered, he can challenge him with his lavish post-Nike deals.
Federer was one of Nike’s faces for most of their 24-year partnership. The American brand also had superstars like Maria Sharapova, Rafael Nadal, and Serena Williams on its payroll. Accommodating their big-money contracts posed a problem for Federer’s renewal. As a rule of thumb, most companies cap their sponsorship spend at 10% of their total revenue. Extending the Swiss star’s agreement would have meant a breach of this standard. Hence, they decided to let him go.
Japanese company Uniqlo onboard him on a mega-deal worth $300 million over 10 years, thrice as much as Nike offered him. This contract did not have a retirement stipulation, meaning Federer would receive the money for the entire duration even if he hung up his boots. Additionally, it did not cover footwear.
After some time, the 20-time Grand Slam champion signed a deal with the upcoming Swiss brand On Running. Interestingly, this was no ordinary sponsorship agreement. Federer signed an equity deal and became the brand ambassador while owning about 3% of the company. Soon, On went public, valued at $10 billion. This meant his stake was worth $300 million.
With smart commercial deals, Federer signed two contracts that are worth over $600 million now. While the future of Woods association with Nike hangs in balance, the tennis star has guaranteed himself a bumper income for the next decade.
