Serena Williams Nike contract: How the American icon set herself up for life with a one-of-a-kind partnership deal
Despite her retirement from tennis in 2022, Serena Williams remains one of the highest-paid athletes in the world. The American superstar enjoyed unprecedented success on-court as well as off it during an illustrious career.
However, it turns out that the seeds for her financial success were sowed a long time ago by her father Richard Williams.
In 1997, 16-year-old Serena Williams was set to take over the tennis world by storm. Despite having won only one professional tournament at the time, she already looked like a potential future star. This was when her father Richard negotiated her first-ever professional contract with Puma.
Although Williams was ranked World No. 99 at the time, her father saw the potential in her and added a 'Top-10' clause in her contract. This clause included many bonuses and incentives when Williams eventually cracked the top 10 of the world rankings.
Soon the Serena Williams juggernaut started taking over and the American became the face of tennis. By 2002, Serena Williams was earning over $6 million from brand endorsement deals, which was the second-highest at the time, behind her sister, Venus Williams. However, it was Serena Williams' deal with Nike in 2003 that kickstarted her journey towards financial prowess.
Serena Williams and her mega deal with Nike
Serena Williams' contact with Puma ended in 2003 and there was a fight for her signature among all the sporting giants. Nike eventually won the battle for her signature and signed her on a then-record $60 million deal spread over six years.
While she had achieved great success on-court in the past, Puma had not quite utilized her full potential off-it. However, a deal with Nike brought glamour and stardom to Williams which was never seen before in women's tennis. This mega-deal with Nike, not only included incentives but also made her a household name across the world.
During her time with Nike, Williams went on to win 23 single Grand Slam titles, the most in the Open Era. Along with that, the American even added Olympic gold and WTA Finals trophies to her cabinet. She was the face of tennis for almost two decades and her partnership with Nike flourished.
In 2013, Nike extended the contract with Serena Williams with a deal worth $40 million over five years. This included sales royalties and incentives for every Grand Slam title and World No. 1 ranking.
In 2016, Williams became the world's highest-paid female athlete with an annual salary of $29 million, which further enhanced her stardom. However, the biggest Nike-Williams tie-up came in 2019, with their apprenticeship program.
How Serena Williams achieved financial stability through Nike and other start-up investments
To encourage diversity in design and develop a new generation of talent, Serena Williams and Nike came together in 2019 to launch the Serena Williams Design Crew (SWDC), a design apprenticeship program at Nike.
This program aims to help develop less privileged children and give them a stage to showcase their talent. This tie-up with Nike is still going strong even after Williams' retirement.
Along with the SWDC deal, Williams involved herself in various businesses and invested heavily throughout her playing career. The American ace started her investment journey by founding 'Serena Ventures' to invest in companies with diverse founders. Serena Ventures has invested in over 60 start-ups so far, getting a positive return on investment from most of them.
Williams then launched her clothing brand, S by Serena, in 2018 to further expand her brand in the market. Along with this, she has a stake in UFC, while also being a shareholder in sporting teams like the NWSL's Angel City FC and the NFL's Miami Dolphins.
Even after her retirement in 2022, Williams was ranked number 49 in the world's highest-paid athletes list by Forbes in 2023. She earned a record $94.6 million in prize money throughout her illustrious career, which has helped her with financial stability after retirement. Her hard work on-court and smart investments off-it have also enabled Williams to have a net worth of $250 million.
Williams' career flourished at the start of the brand marketing era and she took full advantage of it. She was the most sought-after athlete in the brand market for the majority of her career, and it still attracting interest from many brands.
Now, after her retirement, she has admitted that she wants to stay away from the limelight and concentrate on her family but the savvy entrepreneur in her is still often in the news.