In our new fortnightly celebrity investor roundup, Reese Witherspoon dives into the world of cryptocurrencies and Kevin Durant scores big on and off the court. Dubai homeowner Roger Federer netted $90.6 million over the 12 months to August 2021, making him the highest-earning tennis player in the world.
However, less than $1m of that comes from playing tennis. His on-court earnings were lower than normal because the 20-time Grand Slam winner sat out this year’s US Open due to an injured knee. The bulk of Federer’s income comes from endorsements, according to Forbes. That trend is consistent across the top 10 tennis earners.
They collectively earned $320m over the past 12 months – a 6 per cent drop due to Covid-19-related cancellations. By contrast, the top 10 tennis earners made 4 per cent more from endorsements over the same period – a total of $281m, despite a reduced marketing expenditure by many brands.
Federer could be poised for an even bigger pay cheque soon, when shoemaker On Holding, in which he invested an undisclosed sum in 2019, completes an initial public offering in the US. According to regulatory filings, the Zurich-based company aims to raise $622m from the primary market, presaging a valuation of $6 billion.
On’s IPO will consist of 31.1 million shares priced at $18 to $20 each. Assuming conservative sales, the company will have an enterprise value of about four times 2023 sales – as compared to 4.5 times for Nike and 6.5 times for Lululemon, according to Yahoo! Finance estimates.
The offering comes as athletic shoes are selling well thanks to the Covid-19-induced gym closures, which have prompted people to find other ways to keep fit, Reuters reports. Federer teamed up with the company earlier this year to develop the Roger Pro tennis shoes, which sell for about $200 a pair.
