Why Nadal turned down $150M contract with Nike

Tennis legend Rafael Nadal, in the final year of his career, turned down a US$150 million contract renewal from Nike and instead went for a partnership with a lesser-known brand

Nadal’s decision to partner with French sportswear company Hoka, which specializes in running shoes and offers no specific line for tennis, has taken many by surprise, given the lucrative deal he declined, according to Essentially Sports.

Before choosing Hoka, Nadal had a partnership with Nike for more than two decades, since he was 13 years old. The American sportswear company gave Nadal his first contract in 1998, worth $500,000, lasting for five years. This is one of the most successful investments in young talent, when Nadal quickly won prestigious titles as a teenager, Yahoo Sports reported.

 contract with Nike. In 2018, a similar contract was signed for another five years. In total, Nadal has pocketed nearly $200 million from Nike throughout his long and fruitful career.

Nadal’s contract with Nike is similar to Roger Federer’s. However, the Swiss legend ended his relationship with the American sportswear giant in 2018, when it was reported that Nike did not reach an agreement with Federer on some terms. Federer then signed a $30 million a year, 10-year contract with Japanese clothing brand Uniqlo. The contract will expire in 2028 when Federer is 46 years old. That means Uniqlo considers Federer as the face of the brand despite his retirement in 2022.

After choosing Uniqlo, Federer still had two more years in his prime, winning many major titles, including Grand Slams. After that, he suffered many injuries and officially retired in 2022. But Federer’s deal with Uniqlo was not related to shoes and he freely signed with a footwear brand, On. In the contract, the Swiss company gave Federer 3% of their shares. Those shares are currently worth no less than $300 million, Complex reported.

additional $600 million from new endorsements.

But what many people wonder is how a niche and lesser-known brand like Hoka could convince Nadal.

The answer was given by Nadal himself. He no longer needs a sponsor at that point in his career. What he needs is a brand to help him deal with health problems related to his feet. Nadal suffered from a rare degenerative foot condition called Muller-Weiss. After years of playing, his feet were severely damaged. Nike also created special products for Nadal, but that was no longer enough when Nadal retired, as he needed to start his normal life in a different way.