The Next Tennis Superstars Will Come From China, Sharapova Agent Says
The Next Tennis Superstars Will Come From China, Sharapova Agent Says
(Bloomberg) -- The sports agency that helped make tennis champions Roger Federer to Maria Sharapova even richer on endorsements says China is poised to produce a wave of new stars.
IMG, which also has engineered millions of dollars in brand deals for legends including Rafael Nadal and Novak Djokovic, said global marques are increasingly seeking players to boost their profile in Asia’s fast-growing economies. The U.S.-based agency has already found success in the region with Li Na, the only Chinese player to win a Grand Slam tournament, and Naomi Osaka, the 2018 U.S. Open and 2019 Australian Open champion from Japan.
“In 10 years, you’re going to see the most ever Chinese players in the top 100, especially on the women’s side,” Max Eisenbud, IMG tennis vice president, said in an interview. “We’re really spending a lot of time, energy and money in Asia.”
While countries including Russia, Germany, Spain, France and those in the Balkans are likely to continue producing many superstars, when it comes to endorsements, many global brands prefer to target a region researcher Deloitte estimates will comprise two-thirds of the world’s middle class by 2030. For instance, Japan’s Kei Nishikori, who’s never won a Grand Slam, has been making more on endorsements than world No. 1, Djokovic, who’s clinched 15.
The stakes are also rising for agents, who typically take a commission on endorsements, as global brands sign bigger, longer contracts with top players that can keep earning beyond retirement. Last year, Switzerland’s Federer signed a contract ESPN reported as worth $300 million over 10 years with Uniqlo brand, with most of that money likely to arrive after the 37-year-old winner of a record 20 Grand Slam tournaments quits the tour.
IMG client Li retired in 2014, but earned as much as $18 million on endorsements last year, Eisenbud said. He signed Li in 2010, when she was ranked 25th in the world. A breakthrough victory at the 2011 French Open made her a superstar in China, a status underscored with a win at the Australian Open in 2014.
While making history on the court, Li also broke a path in endorsements as the first player Nike Inc. allowed to wear brand patches on her sleeve, a concession that helped the Chinese champion rack up more than $43 million in deals via IMG within two months after winning at Roland Garros.
That torrent of branding helped establish IMG’s global dominance, said Eisenbud, and has helped it lure top players in Asia. Nishikori’s Uniqlo-brand shirts carry patches from Nissin Foods Holdings Co. and Lixil Group Corp., while Osaka added Mastercard to the patches on her Nike apparel earlier this month.
To be sure, there’s still money to be made with top players from the U.S. and Europe as well, Eisenbud said. Along with Sharapova, IMG handles Serena Williams, Venus Williams, Garbine Muguruza, Petra Kvitova, Victoria Azarenka, Sloane Stephens, Madison Keys, a group that includes five of the top 15 players on the women’s professional tour as of May 13. Federer, who signed with IMG as a teenager, is now represented by Tony Godsick, who formed Team8 after leaving IMG.
“What keeps me up at night is that there’s the next Djokovic or the next Sharapova or the next Osaka somewhere and we don’t know about them,” Eisenbud said.
To rest a little easier, Eisenbud has scouts scouring tournaments in Asia for the next big star.
“This year I sent one of my scouts to India because I think that if a great player comes out of India, I think they can be very marketable and we can do a lot of business there,” said Eisenbud.
Tennis is only part of IMG’s sprawling sports and entertainment business. In 2014, IMG was acquired by global entertainment agency WME to form Endeavor.
While IMG and its rivals are looking for tennis players who can win regardless of nationality, when it comes to endorsements, being from a massive consumer market makes a big difference.
“If you look at our best clients who are bringing in the most money, it’s still Li Na and it’s Kei Nishikori and it’s Naomi Osaka.” said Eisenbud. “It’s human nature to realize that if you have a player from China that does pretty good, you can make a lot of money.”
To contact the reporter on this story: Dave McCombs in Tokyo at dmccombs@bloomberg.net
To contact the editors responsible for this story: Sam Nagarajan at samnagarajan@bloomberg.net, Dave McCombs
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