Why Nadal turned down $150M contract with Nike

Rafael Nadal hits a backhand in the 2008 Wimbledon final against Roger Federer at the All England Club, London. Photo by Reuters

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.

In 2008, Nadal signed a $10 million a year, 10-year 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.

Both turned their backs on Nike, but while Nadal only earned very little, Federer was able to pocket an 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.

Rafael Nadal hits a forehand during his match against Alexander Zverev, in the first round of the 2024 Roland Garros at Philippe Chatrier Stadium, Paris, France. Photo by Reuters

The Spaniard player revealed that there was a time when he could not go up and down stairs like a normal person, and playing football with his children was also difficult due to chronic injuries in his feet. Hoka, a running footwear company founded in 2009, is very good at creating shoes that optimize foot health. Hoka even has a design philosophy that is opposite from other footwear companies. They launched lines of footwear with oversized midsoles, called "maximal shoes", while the minimalist trend was popular at the time.

Hoka has their own niche market, and they do not really need Nadal to expand their business. Hoka's customers are mainly professional runners and triathletes. What this company wants is to help Nadal move better in life. Hoka's products are unique in shape but very effective. With Hoka on his feet, Nadal can even climb mountains with comfort.

Hoka's series of super-soft and shock-absorbing technologies have impressed Nadal. For the "King of Clay", it is no longer about fashion or money, but how to manage the pain, which has reduced his quality of life for decades.

Nike's shares fell 11% after they failed to renew Nadal's contract. The company will continue to sell Nadal's famous products until August this year and has already reduced the prices of some lines. Nike said it was a tribute to Nadal and his fans. The world's leading footwear brand does not blame, justify, or criticize the tennis legend. Nike even changed their avatar to Nadal's famous bull logo to honor one of the greatest icons in sports history, Sports Illustrated reported.

When Nadal became the first tennis player to win 21 Grand Slams at the 2022 Australian Open, Nike put his image on the largest billboard in Times Square, New York, with the words: "Advantage, Nadal" to cheer him on in the Grand Slam race with Federer and Novak Djokovic.