Thursday, 15 October 2020

Despite Rafael Nadal equalling Roger Federer’s record of 20 Grand Slams, he has earned half as much per win when taking into account both of their on and off-court earnings.

Data presented by Safe Betting Sites shows that Federer aged 39, earns $45 million per Grand Slam win as of October 2020. On the other hand, Nadal aged 34, has earned $22 million per Grand Slam win.

Federer Makes 3.5x more per Major Open Win than Djokovic

Federer’s earning also dwarfs number one seed, Novak Djokovic, by at least 3.5 times. Djokovic has earned $12 million per Grand Slam win. The 33-year-old number one seed has a total of 17 Grand Slams wins to his name.

Federer, Nadal earn more from endorsements unlike Djokovic

Compared to other top players, Federer has had more years as an active player, something that has reflected on his $900 million net worth. The player is on his way to becoming the first time tennis billionaire. For years, Federer has been the highest-paid tennis player in the world, from prize money and endorsements.

Most of Federer’s money is from sponsorship deals amounting to $771 million. He has received sponsorship from top brands like Uniqlo which earned him at least $300 million in a 10-year deal. The fourth seed also made about $15 million from the Rolex deal per year between 2004 to 2009. Other sponsorship deals include Credit Suisse, Mercedes Benz, and On.

Over the last decade, Federer has witnessed increased competition from Nadal and Djokovic. However, Federer is still the king in terms of earnings. Federer’s earnings generally have kept rising despite some up-and-down movement due to injuries and comebacks.  The Swiss tennis ace, who isn’t competing in the 2020 season is nursing a knee surgery but remains the highest-paid player.

For Rafael Nadal, his endorsements of $329 million emerge as his main source of income while his prize money stands at $121 million. The second-seeded Spanish national major deal was with Nike which paid him about $10 million a year. Other endorsement deals are from Emporio, Armani, Babolat, Telefonica, Banco Sabadell, Tommy Hilfiger, Cantabria Labs, and Mapfre.

Interestingly, Djokovic relies heavily on prize money for his $220 million net worth. The player has accumulated $144 million from prize money having won three less Grand Slams compared to Nadal and Federer. Additionally, the player earns less from wins compared to Federer and Nadal. He also earns the least from endorsements despite having partnerships with brands like NetJets, Seiko watches, Jacob’s Creek, Peugeot, Adidas, FitLine, and Ultimate Software Group. In 2017, Djokovic inked a five-year deal with Lacoste paying a premium to former sponsors.

Nadal, Djokovic unlikely to surpass Federer earnings

Although Nadal and Djokovic are likely to surpass Federer’s Grand Slam record, neither of them is ever likely to surpass his career earnings and sponsorship deals.

With Nadal and Federer relying mostly on endorsements, their earnings won’t be significantly affected even without taking part in major tournaments due to injuries. Most of their endorsement contracts attract huge guarantees and are immune to reductions.

Published in Business

The International Monetary Fund (IMF), in characteristically diplomatic language, has made its view clear on government's plan to bail out South African Airways (SAA) again.

The IMF has acknowledged the need for the South African government to weigh “subsidies to persistently loss making state-owned enterprises” like SAA, “against alternative uses of scarce public resources, including investments in alternative growth enhancing and/or poverty-reducing investments".

 This was the response  from the IMF Executive Director, Kristalina Georgieva’s to a letter the Democratic Alliance (DA) wrote to her in early October to draw the Fund’s attention to the government's decision to proceed with a further R10.4 billion bailout for SAA.

This decision to throw the defunct airline another lifeline is at odds with the commitments Finance Minister, Tito Mboweni made in his Letter of Intent (LOI) sent to the Fund to secure a $4.3 billion emergency loan. The LOI clearly commits the government to use the funding from the IMF to support health and frontline services, solve the balance of payments problems caused by the pandemic, protect the vulnerable, support economic reform, drive job creation and stabilise public debt.

This SAA bailout will likely be funded by cutting Covid stimulus expenditure earmarked for public employment programmes and for rail infrastructure, or by cutting basic services on which South Africans depend. This decision to prioritise SAA over all other urgent spending priorities is morally indefensible.

In her letter, Ms Georgieva reiterated the importance of IMF emergency funds to be used “in an inclusive way to protect people’s lives and livelihoods, and in particular those of the most affected and least prepared to weather the crisis.”

The Fund also underscored the South African government’s commitment “to transparently plan, use, monitor and report all [Covid-19] related spending to ensure it reaches the targeted objectives”.We are pleased that the IMF is keeping close tabs on the government’s spending of this emergency loan and trust that the Fund will trigger its funding requirement for ‘full transparency and accountability’ on the Rapid Financing Instrument (RFI) loan it extended to South Africa.

Published in Travel & Tourism
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