If you are not a tennis fan, the name Naomi Osaka may not immediately ring a bell. She is a professional tennis player who is currently the highest-paid female athlete on the planet.
This week, Forbes released its list of the World’s Highest-Paid Athletes of 2020. The measurement period runs from June 2019 through May 2020.
With her earnings pegged at $37.4 million, Naomi Osaka was ranked 29th among the hundred — male and female — players who made the list. In the process, she surpassed Serena Williams as the highest-paid female athlete in the world. She also dethroned Maria Sharapova, who until recently had held the all-time annual earnings record for a female athlete.
Surprised? Most people are.
As a late bloomer on the professional tennis scene, Naomi Osaka was a relative unknown until she upset Serena Williams in the controversial final match of the 2018 US Open tennis tournament. Osaka followed up her first grand slam victory with another win at the 2019 Australian Open, cementing her place among the elite tennis players of the decade.
At the time of writing, Naomi Osaka is 10th on the WTA rankings list.
As per the Forbes report, Osaka earned only $3.4 million in tournament winnings during the measurement period.
So how does Naomi Osaka become the highest-paid female athlete ever?
Sponsorships!
It comes down to how much the sponsors think Naomi Osaka is worth. And, the sponsors appear to think that she is worth a lot.
Ninety percent of Naomi Osaka’s income comes from sponsorships.
Osaka has accomplished what most other top-ranked female tennis players have not been able to do. Simona Halep and Angelique Kerber have more titles and career earnings than Naomi Osaka. Yet, they failed to make the World’s Highest-Paid Athletes List in 2019.
As a Marketer, here’s my take.
Marketability
Naomi Osaka is marketable. Sponsors recognize a golden goose when they see one. She has the game, appeal, intrigue, and reach.
Having an agency such as IMG helps.
The execs at IMG would have insight into the goings-on within the tennis sponsorship landscape. Novak Djokovic, Kei Nishikori, Maria Sharapova, Li Na, and other prominent players are IMG clients. Exposure to Asian athletes and their fanbase probably gives them an added advantage. Naomi Osaka, in the hands of a tennis-savvy agency such as IMG, is a win-win combination.
Fan appeal
Naomi Osaka has a broad fan appeal. That translates to a larger addressable market for the sponsors.
She was born in Japan but grew up in the US. Her mother is Japanese while her dad hails from Haiti. Her mix-race is evident in her physical appearance. She comes through as more Japanese than American in her demeanor and mannerisms.
It’s clear that she has a multi-racial appeal. It is not difficult for people from either race to see her as one of their own.
With a pleasing personality and a low-key approach to post-game interviews, Osaka is perhaps more relatable to fans than superstars like Serena Williams and Maria Sharapova, both of whom have been among the highest-paid athletes of the game.
Global reach
From a market reach perspective, more global fans mean more product exposure and potential sales.
It’s up to the fans to decide if she is Japanese, American, or Haitian.
As the first Japanese player to ever win a grand slam tennis tournament, the Japanese are squarely behind Naomi Osaka. Her sponsors include prominent Japanese brands such as Yonex, Nissan Motors, All Nippon Airways, Shiseido, and Nissin Foods.
The American fans view her as American; except, when she plays the likes of Serena Williams, Sloane Stephens, and Coco Gauff. With people from three countries rooting for her, Naomi Osaka’s fan base is as global as it can get even before her game is factored in.
Timing
From a timing perspective, it is a perfect storm for Naomi Osaka.
The female superstars of tennis are fading.
Maria Sharapova has retired. Serena Williams is thirty-eight; her best days are behind her. Angelique Kerber and Simona Halep are great players, but their stories have less intrigue for the fans. Up and comers like Bianca Andreescu and Sofia Kenin are prospects, but their momentum may have taken a hit due to COVID-19.
Apparel and equipment sponsorships are big business for both players and sponsors.
Roger Federer’s three-hundred million Uniqlo deal is still fresh in a lot of people’s minds.
Fortunately for Osaka, Nike considered her valuable enough to woo her away from Adidas and give her coveted non-exclusivity exemptions to take on “patch sponsorships.”
That is like having your cake and eating it too.
Olympics 2020
Naomi Osaka’s decision to represent Japan in the now-postponed Olympics 2020, was a brilliant move. While Osaka has maintained that it was not a calculated move, it has further enhanced her marketability in Japan. Osaka’s popularity was evident during my recent visit to Tokyo, where random stores that had nothing to do with tennis displayed her image on their storefronts.
Simply put, Naomi Osaka has gotten it right.
Sponsorships are a more secure way for players to ensure continued income. Think Michael Jordan.
At the ATP and WTA level, winning is hard. It is tough for players outside the top-ten to make a living on prize money alone.
Canada’s Bianca Andreescu could take a page out of Naomi Osaka’s negotiation playbook. Andreescu is young, witty, and has Canadian and Romanian fans cheering for her. Her prospects would improve if she won another grand slam tournament.
As for Naomi Osaka’s sponsors, the money spent on her sponsorship is likely just a drop in the bucket.
Even if Osaka does not fare well in her future matches, she is already in the history books.
It’s a win-win…
Naomi Osaka Photo Credit: Rob Prange on Flickr
Naomi Osaka Photo Credit: Peter Menzel on Flickr
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