From Brand Ambassador to Brand Owner – the implications of Mbappé moving ON from Nike

A spokesperson for On confirmed that Mbappé's contract includes an 'incentive structure…[with] equity components', although unsurprisingly, the detail of this incentive structure remains undisclosed. Other reports have gone on to mention performance-related bonuses in the event Mbappé wins the Champions League or World Cup.

In some ways, the deal feels reminiscent of a management incentivisation scheme in the more traditional sense. Management are often rewarded by way of equity or equity-related bonuses both as a way of keeping them at the company (usually involving both 'carrots' for good performance and 'sticks' in the event the manager resigns without what is considered a good reason) and aligning management's commercial interests with those of their company's shareholders. All of this is based on the premise that a manager's performance will directly affect the value of the share price.

Many of these factors will likely have played a similar role when negotiating Mbappe's sponsorship deal with On.

When structuring an arrangement of this kind, there are several questions that would need to be carefully considered. On the shareholder side: what does the path to liquidity actually look like? Would the athlete be free to sell their shareholding to a third-party buyer on the open market, or would any disposal be restricted (for example, a requirement to first offer the shares back to On or its major shareholders?) And on what terms and at what valuation would any such sale be conducted? From a contractual perspective, it would also be important to consider what happens to the athlete's equity position if they were to terminate the endorsement contract early. For example, are there early exit provisions and should there be provisions akin to 'bad leaver' clauses, designed to protect the brand in circumstances where the athlete's conduct causes reputational damage? For Mbappé, he will certainly be keen to avoid a red card from his new sponsors...

Mbappé's other endorsements illustrate the complexity of sponsorship arrangements. He plays for Real Madrid, which is partnered with Adidas at club level. He is also the captain of the French national team, which is partnered with Nike. This is not entirely unusual, and the player's personal endorsement agreements must operate alongside club and national team sponsorship obligations, image rights arrangements, and restrictions on when and where an athlete can promote a competing brand.

Precise contractual drafting is therefore essential. An athlete’s endorsement agreement should include carve-outs recognising occasions when they are required to wear another brand’s apparel. Separate provisions may even be needed for the team kit and for boots. 

Whatever the answer to the above questions, Federer's reported 3% stake in On impressively demonstrated the potential upside of these types of arrangements, and the opportunities for athletes to build wealth beyond their playing career. As of August 2026, Federer's stake in On had been reportedly valued at $310 million. By comparison, Federer's total prize money earnings in his professional career 'only' amounted to c. $131 million.

The idea isn't entirely new, and other athletes have explored similar arrangements in the past. Sir Andy Murray began wearing Castore apparel for the 2019 Australian Open. Two months later, he became a shareholder and board advisor. In 2023, Steph Curry's contract extension with Under Armour granted him an equity stake in the brand. Both illustrate how sponsorship agreements can evolve into a shareholder relationship, aligning an athlete's financial interests with the long-term growth of the brand value.

For now, these arrangements may be the preserve of elite athletes at the pinnacle of their sports but there is no structural reason why they cannot be adopted more widely. As awareness grows and the market matures, we may well see a broader cross-section of athletes exploring these models as a genuine mechanism for longer-term financial security. Of course, with greater commercial opportunity comes greater commercial exposure, and athletes entering this space will need to navigate the associated business risks. How this landscape evolves over the coming years, and whether these structures become a mainstream feature of athlete wealth management, will be well worth watching.

From equity-led sponsorship deals to angel investments, it is clear to see athletes are becoming far more sophisticated in terms of their commercial arrangements. Gone are the days of budding football players writing letters to a sportswear brand asking if they could provide them with a set of boots. The arrangements are becoming more complex and multi-faceted, and it will be interesting to see how athletes continue to capitalise on their commercial appeal and their own personal brand and image.