What Roger Federer Got Right About Investing in On Running

  When Roger Federer announced a partnership with On Running in 2019, most headlines framed it as another celebrity collaboration. A Swiss legend backing a startup Swiss shoe brand truly meant that something was cooking behind the scenes. And in fact, that reading missed what was actually happening. Federer wasn't signing a sponsorship deal, he was taking equity in the startup.

Two years later, On Running was listed on the New York Stock Exchange at a valuation of around $11 billion. Federer's stake, reported at roughly 3%, was suddenly worth hundreds of millions. It became one of the most talked-about athlete investment deals of the decade. Not because of the numbers alone, but because of how the initial deal was structured.

Federer's acquisition in On Running was not a traditional athlete endorsement deal where: a brand pays you to wear their logo, you cash a cheque, and the relationship ends when your contract does. Federer completely flipped that. Rather than licensing his name, he bought into the company, exchanging some endorsement value for a considerable amount of ownership in the company.

At the time, On Running already had a loyal customer base and a distinguished product before Federer arrived. In other words, he wasn't rescuing a struggling brand. But he was betting on a company that was already executing. His involvement accelerated global visibility, but the actual company was not depending on him, which is a safer place to be as an investor.

The alignment between On Running and Federer is outstanding; Federer is Swiss. On is Swiss. He represents precision, longevity and elegance; values that map out naturally onto the brand. The partnership between both parties made plenty of sense, because it was an authentic joining of forces.

Federer's classy and low profile image was demonstrated once again during his featuring in campaigns and product collaborations. He insisted on the fact that he did not want to position himself as the person running the company. He only added value where he had genuine credibility. For example, the release of his own shoe model, "The Roger",a line that carried his name and reflected his input on design and positioning. On Running gained significant popularity with the release of that specific model, illustrating the powerful image and fanbase that Roger Federer has around the globe. Roger evidently left the operational decisions to the managers of the company.

Roger's first advertising campaign with On Running as an investor

Joining On Running in 2019, three years before Federer retired, was a clear strategic move. Most athletes start thinking about businesses at the final stretch of their careers, because when their name loses importance and the best deals are already taken. Federer moved early, while he was the most important figure of the sport. He then used that leverage to get into a company in beneficial conditions, and then let the business do the rest. By the time he had officially retired at the end of the 2022 season, the investment had already paid off many times over.