The world of sports has always been a dazzling realm, filled with electrifying competition, unwavering fan devotion, and unforgettable moments steeped in national pride. It’s a world where Athletes have often been thrust into the spotlight, not only to excel on the field but also to bear the hopes and aspirations of entire nations. A testament to this transcendental power of sports is the story of Jesse Owens, who, in the face of racial adversity, triumphed at the 1936 Olympics in Munich, showing the world that excellence knows no racial boundaries.
Yet, it was the 1950s that introduced us to a young Brazilian sensation named Pele, the pioneer of a new era in sports. Pele led Brazil to a historic victory in the 1958 FIFA World Cup and emerged as the very first sports superstar. With his dazzling skills, prolific scoring record, and three World Cup wins, Pele captured the imagination of fans worldwide. Beyond his exploits on the pitch, his charismatic personality and humility off the field made him a global icon, proving that athletes could transcend their sport and inspire people across all walks of life. In the annals of sports history, Pele stands as the original sports superstar.
As time flowed onward, the realms of sports and commerce intertwined, creating opportunities for athletes and brands to forge mutually beneficial relationships. The 1980s saw the emergence of a transformative deal when a sportswear giant named Nike took a chance on a young basketball sensation named Michael Jordan. They offered him an extraordinary sum to wear their branded shoes, birthing the iconic “Air Jordan” brand. Little did they know that this bold venture would evolve into a subsidiary company of Nike, with staggering sales of $5 billion last year. Remarkably, Michael Jordan now reaps greater royalties and dividends from this brand than he did during his illustrious playing career, even after retiring nearly two decades ago.
In recent years, a fascinating shift has emerged – a growing number of sports icons have become investor/owners. This transition signifies a profound evolution in the world of sports, where athletes are not only stars on the field but also influential stakeholders off it. This transformation is set to gain even more momentum as the sports landscape evolves with the rise of social media, streaming services, and faster internet connections, providing athletes with unprecedented opportunities to shape their careers.
Consider David Beckham’s bold move to the LA Galaxy in 2007. At the time, many viewed it as a questionable decision, with the then 31-year-old accepting a substantial pay cut to join Major League Soccer (MLS). Little did we know that this would turn into a masterstroke in sports Business, potentially worth billions in the long run. Beckham’s contract, beyond the headlines, included groundbreaking clauses that allowed him to amass over $500 million during his five-year tenure in MLS. He negotiated a share of team revenue that encompassed everything from merchandise sales to concessions, catapulting his overall earnings and making him the world’s highest-paid player, raking in over $50 million annually. Furthermore, his contract contained a clause enabling him to purchase a new MLS franchise for a mere $25 million, a move that led to the birth of Inter Miami in 2018, which is currently valued at approximately $600 million and is poised to reach $1 billion following the signing of Lionel Messi.
On the tennis courts, Roger Federer has left an indelible mark as one of the greatest players in history, with an astonishing 82% career winning record. However, his genius extends far beyond the baseline. After departing from management company IMG in 2013, Federer founded TEAM8, a boutique sports agency that forged enduring brand partnerships with more than ten major companies, including Wilson, NetJets, Rolex, and Mercedes-Benz. In 2018, when Nike chose to end their sponsorship deal with the 36-year-old Federer, it paved the way for a game-changing partnership with Japanese sportswear manufacturer Uniqlo, inking a remarkable 10-year, $300 million deal. Notably, the agreement contained a non-retirement clause, ensuring Federer would continue to earn $30 million annually even after hanging up his racket. Remarkably, Uniqlo’s sponsorship covered only apparel, prompting Federer to sign with Swiss footwear company “On Running.” This decision, involving product design and promotion, handed Federer a 3% stake in the company, now valued at $10 billion, making Federer $300 million richer and marking him as the first tennis billionaire in history.
In the world of golf, Tiger Woods, with his legendary career, embarked on diverse business ventures that showcased his entrepreneurial acumen. He established a golf design company (TGR Design), an event production firm (TGR Live), and a restaurant (The Woods). Through TGR Ventures, Woods invested in a myriad of enterprises, from golf technology to hospitality software, contributing to a growing and thriving portfolio. Additionally, he became a partner in a Special Purpose Acquisition Company (SPAC) and participated in NEXUS Luxury Collection, a consortium of exclusive clubs and resorts. Woods, alongside fellow golfers like Ernie Els and Justin Timberlake, demonstrated that his prowess extended well beyond the fairways.
Magic Johnson, the basketball legend, turned down Nike’s offer of stock options in favor of a larger cash deal from Converse, ironically now owned by Nike. Magic has made a name for himself not only as an NBA superstar but also as a highly successful businessman and investor. Beyond his illustrious basketball career, Magic co-founded Magic Johnson Enterprises, a conglomerate with a vast array of holdings spanning entertainment, healthcare, and real estate. Through this entity, he played a pivotal role in revitalizing underserved urban communities, with a focus on job creation and economic development. Furthermore, Magic became a co-owner of the Los Angeles Lakers, highlighting his enduring connection to the world of sports. His strategic investments included partnerships with major brands such as Starbucks and 24-Hour Fitness, as well as forays into infrastructure development, including movie theaters and restaurants. Magic Johnson’s remarkable transition from sports stardom to thriving entrepreneurship and impactful investments underscores his enduring legacy as a multifaceted business mogul and community advocate.
In the world of football, Gerard Piqué, the celebrated FC Barcelona and Spanish player, has made significant inroads into the business arena. Through his investment company, Kosmos Holding, Piqué ventured into various successful businesses, most notably the acquisition and transformation of the Davis Cup in tennis. Piqué’s involvement in sports management extends to esports, where he co-owns a professional gaming team called “eFootball.Pro”. Additionally, he holds a stake in a Catalan media company, producing documentaries and content. In July 2022, Gerard Piqué and Oriol Querol co-founded the Kings League, an innovative football concept aiming to cater to a younger generation’s desire for fast-paced, action-packed matches. What sets the Kings League apart is its innovative distribution strategy, partnering with influential streamers on platforms like Twitch, YouTube, TikTok, and Instagram, amassing millions of followers and offering free live streaming of matches. The league aims for international expansion, capitalizing on football’s global popularity and focusing on language-based rather than location-based versions, potentially reshaping the future of football entertainment. Piqué’s entrepreneurial spirit, combined with his passion for sports and media, has allowed him to diversify his interests and establish himself as a multifaceted businessman beyond the football pitch.
In the realm of basketball, NBA superstar LeBron James has not only excelled on the court but has also cemented his status as a formidable businessman and investor. As the co-founder of SpringHill Company, a multimedia production company dedicated to amplifying underrepresented voices and stories in film, television, and digital content, LeBron is at the forefront of the entertainment industry. His endorsement deals with major brands like Nike have made him a driving force in their marketing campaigns. Moreover, LeBron has been actively engaged in philanthropy through his LeBron James Family Foundation, particularly in championing initiatives like the “I PROMISE School” for at-risk children in his hometown of Akron, Ohio.
Serena Williams, the tennis legend, is not only celebrated as one of the greatest athletes in history but also as a savvy investor. Beyond her numerous Grand Slam titles, Serena has ventured into entrepreneurship and venture capital through Serena Ventures, a firm that invests in early-stage companies across various sectors, with a particular focus on businesses led by women and minorities. Her investments range from tech startups to fashion brands, reflecting her diverse interests and commitment to empowering underrepresented entrepreneurs. Serena’s astute business acumen and dedication to promoting diversity in the business world have established her as a trailblazing investor-athlete making a lasting impact beyond the tennis court.
The transformation of athletes into investor/owners can be attributed to various factors, including their increased financial savvy and the realization of the importance of securing their post-playing careers. They recognize the potential for wealth generation and long-term financial security by owning stakes in sports franchises and exploring diverse investment opportunities beyond player contracts.
The impact of athlete-investor/owners on the sports industry has been undeniably positive. These athlete-owners bring a unique connection with fans, understanding the game from a player’s perspective and enhancing fan engagement. Their business acumen and financial literacy have improved the overall management and operations of sports franchises. Athlete-investor/owners have also played a vital role in promoting diversity and inclusion in sports leadership, challenging traditional ownership structures. Many of them invest in sports technology companies, driving innovation in areas such as sports analytics, performance optimization, and fan experiences.
However, this transition also presents challenges. Investing in sports franchises can be financially risky, as team performance can fluctuate, affecting the value of the investment. Balancing playing careers, business ventures, and ownership responsibilities can be demanding for athletes. Athlete-owners may also face ethical dilemmas, such as conflicts of interest, when their team competes against their former teammates or rivals.
In conclusion, the shift of athletes from players to investor/owners represents a captivating evolution in the world of sports. These athletes are not merely contributing to their respective sports on the field but are also shaping the future of the industry from the boardroom. With their financial acumen, passion, and influence, athlete-investor/owners are ensuring that their legacy extends far beyond their playing days, leaving an enduring impact on the sports world for generations to come. Their journey from sporting excellence to business brilliance is a testament to the boundless potential of human achievement, both on and off the field.
Mohammed Basah, a communications and business development consultant is the CEO of Brandswift Nexus.
The post The Remarkable Evolution of Sporting Icons From Players to Investor/Owners -By Mohammed Basah first appeared on Opinion Nigeria.
