Why Tiafoe to Lululemon Is a Win for all Parties—Nike Included
Inside: How a little known Nike policy and a host of new sportswear brands revolutionised the athlete endorsement market. Plus, what I'm watching in sports culture and some news about my next steps.
Hi friends, and welcome back to another edition of SportsVerse. This newsletter has quickly become an actual thing and I’m loving it. I have some exciting news coming soon. Thanks for sharing your opinions, pitches and ideas for future newsletters.
Today, we’re here to talk about the rapid democratisation of the athlete endorsement market over the past couple of years. And here is a case that sums all of that up.
The big news heading into the Australian Open over the weekend was that US tennis star Frances Tiafoe is no longer a Nike athlete. He now reps Lululemon for apparel.
This situation is a rare win for all parties:
It’s certainly no loss for Nike. Sure, Big Foe is a charismatic, stylish guy and a solid top 20 player, but he simply wasn’t a priority. His departure frees up more marketing dollars for Nike to invest in two of its generational tennis talents: Carlos Alcaraz and Jannik Sinner.
As for Tiafoe, he now goes from being just one of hundreds of Nike athletes to being the face of Lululemon’s tennis category. He’ll get greater visibility and signature apparel collections. He also won’t have to compete for attention when it comes to the brand’s marketing efforts. No doubt that cheque was good too. It also means he’s free to cash in again by signing a shoe deal with another brand (for now, he’s wearing K-Swiss sneakers on court).
While losing Big Foe was no big deal for Nike, securing his services is a huge coup for Lululemon. The brand wants to be seen as a credible performance sportswear player by building out a roster of elite athlete ambassadors. It’s a strategy to refresh consumer interest, remain closer to the culture and diversify its product offering after interest in its activewear staples has waned since the pandemic.
Stick with me as I unpack all these points and more in today’s newsletter.
But first, here’s three things I’m watching in sports culture this week.
Sephora is following Glossier’s lead and going big on women’s basketball. It’s already the official beauty sponsor of Unrivaled, and just became the first ever partner of WNBA expansion team Toronto Tempo. Glam.
Jordan Rogers explains why Puma is suing Tiger Woods’ Sun Day Red brand… all while juggling a golf ball in the snow. Impressive.
Naomi Accardi has built a directory of the most exciting (and employable) creative talent across the world of sport. It’s a goldmine.
Finally, please don’t forget to refer your friends to SportsVerse for insights and good times they can’t get anywhere else. You can win some prizes while doing it.
Lululemon’s Athlete Strategy
Over the past couple of years, Lululemon’s game plan has hinged on signing exciting talent across myriad sports. Its roster now includes track-and-field (and TikTok) power couple Tara and Hunter Davis-Woodhall, Jordan Clarkson of the Utah Jazz, golfing sensation Lydia Ko, and the Seattle Seahawks’ DK Metcalf.
The Canadian activewear giant first entered tennis when it signed compatriot Leylah Fernandez in 2022.
At the Australian Open, Tiafoe is wearing a Lululemon shorts and t-shirt set in an eye-catching colourway the brand has called… “passionate pink”. (Yep, I just cringed too.) The set looks great, though. Fans got a good look at in action while Big Foe threw up on court on the way to a gruelling five set win in his first game Down Under. He is also sporting a bespoke jacket which pays homage to his native DMV.
A Fragmenting Endorsement Market
In recent years, Nike—by far the largest sportswear brand in the world—has been consolidating its athlete endorsement program, opting to focus its budgets on only the top tier of sporting greatness, rather than paying as many big athletes in each sport as possible.
That’s not to say Nike’s cutting people loose left, right and centre. Many athletes are happy to remain associated with the brand for lesser pay thanks to the obvious credibility and access that comes with it. Some don’t get paid at all and are contracted on what’s known as “product only” deals.
There’s another reason why athletes used to stay even in the absence of a big endorsement deal: unless it was with Nike, Adidas, Puma or Under Armour, there were very few places you actually could go for sponsorship. But now, a plethora of new brands—like Lululemon—have entered the athlete endorsement market, targeting this exact tier of athletes who find themselves under-appreciated by the traditional sportswear giants.
These brands can offer athletes massive paydays, profit-sharing agreements and bespoke product lines, simply because they have the money and aren’t already committed to paying hundreds of other athletes. It has changed the face of the athlete endorsement market.
Skechers has Joel Embiid and Harry Kane. Alo Yoga works with Joe Burrow and Jimmy Butler. US tennis poster boy Taylor Fritz wears Hugo Boss on court. On changed the game with Roger Federer then Ben Shelton and Iga Świątek. Chinese brands are muscling in on the market too: Kyrie Irving is the signature athlete of Anta, while Li-Ning has become a credible name in basketball thanks to its work with Dwanye Wade.
Athlete Independence Is the Future
Athletes are realising that big brand endorsements just don’t make sense anymore.
Not only are they harder to come by because brands like Nike are paring back their rosters, but endorsement contracts can be highly restrictive, with marketing obligations and exclusivity clauses that restrict them from wearing other brands’ gear in public.
The most exciting moves are being made by athletes who are going it alone, either investing in fledgling start-ups or creating their own sneaker or apparel lines to play in.
Last year, Jaylen Brown launched his “741” line of performance sneakers and apparel which he wears on and off court, after years of criticising the tactics and product offering of big brands like Nike. Legendary American sprinter Allyson Felix walked away from her Nike deal and founded Saysh in 2019, a performance apparel and footwear brand aimed at empowering women.
Footwear specialist and former Yeezy designer Omar Bailey’s FCTRY Lab is helping NFL athletes like Jalen Ramsey create their own custom signature sneakers, without needing to be tied to a major brand. Athletes like WNBA player Syd Colson have made similar moves: last season the Aces star signed a deal to launch her own shoe with Creative Control, a company designed to offer athletes exactly what it says on the tin.
Meanwhile, smaller, purpose-driven sports footwear start-ups like Moolah Kicks and Holo Footwear (both basketball) and Sokito (soccer) are enticing young athletes to come on board, offering a blend of equity, autonomy and creative control they would never get at Nike or Adidas.
To me, and to many of the athletes and brand builders I speak to, this is the future of sportswear endorsement. Top athletes will always be tempted by mega signature deals at the biggest brands, but it’s getting harder and harder to ignore the benefits of going it alone with the right partner—especially for younger athletes wanting to go against the grain.
It breeds creativity and entrepreneurship, and it gives the megabrands a run for their money. I for one, am all for it.
That’s all for today team, thank you as always for sticking with me. The concept of athlete independence is one that will dominate our little corner of the world for years to come, and I’m excited to write about this more on SportsVerse.
Until next time!
DYM
My Next Moves
I left my role as Sports Correspondent at The Business of Fashion in December after three-and-a-half happy years. Many of you have asked what I planned to do next. Fittingly, the news of my new role was scooped by the Lauren Sherman—a legendary reporter and former colleague who I learned so much from in my early days at BoF—in her newsletter for Puck, Line Sheet. So here it is!
I start at Upland Workshop at the end of this month and cannot wait to get going. It’s one of a few exciting roles I will be taking on this year, and I’m looking forward to revealing the next one very soon!
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Very thorough piece! Will definitely be subscribing. One thing about the Tiafoe deal with Lululemon is that I wonder if the brand would tell him to hold off on a sneaker deal. Lulu has sneakers, albeit running, but who is to say that they won’t branch out? Lulu, while they are in its infancy, could go full on into tennis like they do with running now. And let’s not forget the fact that Tiafoe might be the biggest signing Lulu has done. Tiafoe has made it known he wants to bring more everyday people into Tennis. Might be a dream
congrats on your new role! very well-deserved :)