How 3% Of A Shoe Company Made Federer More Money Than 20 Grand Slam Wins

Tennis great Roger Federer's most lucrative financial move wasn't made on a tennis court — it came through a strategic investment in a Swiss sneaker company, On Holding AG (NYSE:ONON).

According to Bloomberg's Billionaire Index, Federer has amassed a net worth of $1.3 billion. While he earned $130.6 million in prize money during his 24-year career — including 20 Grand Slam titles — his wealth primarily stems from endorsements and investments.

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From Grand Slams To Billionaire Status

Federer joins the ranks of billionaire athletes, including Michael Jordan, LeBron James and Tiger Woods. His net worth reflects a combination of endorsements, equity stakes, and earnings, adjusted for Swiss tax rates and market performance, according to Bloomberg.

Many of his partnerships have spanned decades. Federer earns $8 million annually from Rolex and $5 million from Mercedes-Benz, and also received $20 million from Swiss chocolatier Lindt, Fortune reported. However, his biggest financial wins came in the later stages of his career.

The Uniqlo Deal That Led to a $500 Million Sneaker Bet

In 2018, Roger Federer ended his long-standing apparel partnership with Nike (NYSE:NKE) and signed a $300 million, 10-year deal with the Japanese clothing brand Uniqlo. Unlike Nike, Uniqlo doesn't produce footwear, giving Federer the freedom to explore new opportunities in the shoe market.

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That opening led to a pivotal investment in On Holding, then an emerging sneaker maker. Federer first came across the brand after his wife bought a pair and introduced him to its founders. Impressed by the product and vision, he met with the team and later collaborated on developing his own line of performance shoes, Bloomberg reported.

Federer ultimately purchased an estimated 3% stake in On. The brand's popularity has surged, particularly in the U.S., and it now has a market capitalization of more than $17 billion. Bloomberg estimates Federer's stake is worth at least $500 million—nearly four times his total tennis prize earnings over two decades.