In 2019, Federer stood on a Basel, Switzerland, tennis court amidst a shower of golden confetti, tears streaming down his face. The emotion followed a dominant victory at the Swiss Indoors final, his hometown tournament where he once served as a ball boy. But the moment also seemed to underscore the growing reality that, at 38, such moments in his professional tennis career might be numbered.

Indeed, that trophy was Federer's last title. Injuries hampered the final three years of his career on Tour before he retired in September 2022.

Federer (in red) celebrates his 10th Swiss Indoors title on 28/10/2019. This was also his final career title. Photo: AP

Federer (in red) celebrates his 10th Swiss Indoors title on 28/10/2019. This was also his final career title. Photo: AP

Federer, now 44, didn't add to his collection of 20 Grand Slam singles titles and two Olympic medals. However, he remained the top earner in tennis until his retirement – and even beyond. According to an August update from Forbes, Federer is now a billionaire with a net worth of $1.1 billion USD, thanks largely to a significant stake in the Swiss shoe and apparel brand On, a publicly traded company.

Federer, whose Swiss father and South African mother worked for a pharmaceutical company, started playing tennis at the age of three and became the world's top-ranked junior player. After turning pro in 1998, he had his breakthrough in 2003, winning Wimbledon. During his 24-year ATP Tour career, Federer spent 310 weeks as the world's number 1 singles player, won 103 titles, and earned nearly $131 million USD in prize money alone – still the third-highest in tennis history, behind Novak Djokovic ($189 million USD) and Rafael Nadal ($135 million USD).

Federer's off-court success is even more impressive. He earned an estimated $1 billion USD (pre-tax and agent fees) from endorsements, appearances, and other business ventures during his playing career. This is double the amount earned by Djokovic or Nadal, according to Forbes. With an unmatched portfolio of sponsors, including many brands that have partnered with him for over a decade, Federer was the world's highest-paid tennis player for 16 consecutive years. In 2020, he led all athletes with estimated pre-tax earnings of $106.3 million USD.

Federer joined an exclusive group of seven athletes to reach $1 billion USD in career pre-tax earnings while still competing. This group includes Los Angeles Lakers basketball star LeBron James, golfers Tiger Woods and Phil Mickelson, soccer players Cristiano Ronaldo and Lionel Messi, and boxer Floyd Mayweather.

Federer is among a group of seven billionaire athletes, including Michael Jordan and Tiger Woods. Photo: Sunsport

Federer is among a group of seven billionaire athletes, including Michael Jordan and Tiger Woods. Photo: Sunsport

Now, nearly three years after retiring, Federer has entered another rare group: He's one of seven high-profile athletes to join the billionaire's club with a net worth, after taxes and debt, of at least $1 billion USD. The first in this group was also a tennis player, Ion Tiriac, the 1970 French Open men's doubles champion who also competed in ice hockey for Romania at the 1964 Winter Olympics. Tiriac began investing after the collapse of the Soviet Union, joined the billionaire ranks in 2007, and is now worth an estimated $2.3 billion USD, with investments in real estate, car dealerships, and financial services.

Basketball legend Michael Jordan followed in 2014 and is now worth an estimated $3.8 billion USD. Then came Lakers legend Magic Johnson, worth approximately $1.5 billion USD, and former Milwaukee Bucks reserve player Junior Bridgeman, who had a net worth of $1.4 billion USD when he passed away in March. LeBron James ($1.2 billion USD) and Tiger Woods ($1.3 billion USD) are the only other athletes to have joined the billionaire's club while still competing.

Federer’s business success stems from his marketing appeal. His carefully curated portfolio of sponsors, including long-term brands like Lindt, Mercedes-Benz, Rolex, and Moet & Chandon, has made him an icon of luxury, blending with his elegant tennis style and spotless reputation.

"Federer's personality and likeability are big pluses," said Lisa Delpy Neirotti, director of the sports management program at George Washington University. "You can be a great athlete on the court, but not everyone likes you. Federer has a graceful demeanor. He is good-looking, very polite, sophisticated, and his brands reflect that."

A handshake with Uniqlo in 2018 brought Federer 0 million USD and opened the door for him to invest in On. Photo: AP

A handshake with Uniqlo in 2018 brought Federer $300 million USD and opened the door for him to invest in On. Photo: AP

Federer leveraged that appeal in 2018 when he left Nike – which had paid him an estimated $150 million USD over two decades – to sign an apparel deal with Japanese brand Uniqlo reportedly worth $300 million USD over 10 years. While with Nike, due to exclusivity clauses, Federer could only endorse, use, and receive sponsorship from Nike for both apparel and shoes. Since Uniqlo doesn't make tennis shoes, this left an open category for Federer. He seized the opportunity, partnering with Zurich-based On.

Federer discovered On when his wife started wearing the brand’s shoes, and he soon connected with founders David Allemann, Olivier Bernhard, and Caspar Coppetti. In 2019, Federer took a stake in the growing company, then focused on running shoes. He agreed to help the brand develop tennis shoes and a lifestyle apparel line. The gamble paid off just two years later when On went public on the New York Stock Exchange in 2021, with Federer owning an estimated 3% stake. The company now has a market capitalization of nearly $15 billion USD, and the stock is up 86% from its IPO price, making Federer’s stake worth over $375 million USD.

Marc Maurer, then On's co-CEO, told Forbes in 2023: "Roger was the catalyst. We wanted to open that door, and obviously, tennis is the next sport. We were very fortunate that Roger joined us on that mission."

Federer invested in the Swiss shoe and apparel brand On in 2019. Photo: Tatler

Federer invested in the Swiss shoe and apparel brand On in 2019. Photo: Tatler

Federer has also seen impressive returns from other investments. In 2013, he co-founded the management company Team8 with his longtime agent, Tony Godsick. 4 years later, they created the Laver Cup, an annual team tennis competition between six European men and six players from the rest of the world. The event, now a recognized stop on the ATP Tour and attracting top players, has been consistently profitable – except in 2023 when infrastructure improvements were made – according to the Sports Business Journal. This year's Laver Cup, scheduled for San Francisco in September, is expected to surpass $20 million USD in both sponsorship and ticket/hospitality revenue.

Federer may soon have another success story. In 2021, he participated in a $235 million USD Series D funding round for NotCo, a Chilean company developing plant-based foods. The funding round, which included high-profile investors like F1 driver Lewis Hamilton and Roots drummer Questlove, valued the startup at $1.5 billion USD. A year later, NotCo raised an additional $70 million USD as it launched a unit licensing its artificial intelligence tool to other food manufacturers in a business-to-business model.

Federer has equity investments with over 10 partners from his playing days, including private jet company NetJets, eyewear brand Oliver Peoples, and UBS – which acquired his sponsor Credit Suisse in 2023. Among his endorsement strengths, he remains more popular than most other tennis players, with 43.5 million followers across Facebook, Instagram, and X – trailing only Rafael Nadal with 51.6 million, according to marketing agency Two Circles. Over the past three years, Federer has achieved a 2.3% engagement rate on social media platforms, nearly double that of Djokovic (1.2%) and more than four times that of Nadal (0.5%).

"I think this empire will last," concluded Professor Delpy Neirotti of George Washington University, regarding Federer's endorsement value. "I think he will be able to maintain this."

Hoang Thong (adapted from Forbes)