Four-time winner of the Grand Slam tournaments, called by herself “advocate for change”. Daughter of a Haitian man and a Japanese woman, growing up in the United States. Investor, fashion creator and face of the world’s largest corporations, actively involved in social and political life. Naomi Osaka, although she turned 24 on October 16, is now one of the most famous tennis players in the history of this sport. Even more importantly, the tennis icon is also the best-paid female athlete in the world. According to data presented by Sportico in May this year, Osaka earned as much as 55,2 million dollars in 12 months. A tennis player from Japan has recently proved more than once that she only plays by her own rules. And this is precisely her key to business success.
The beginnings of a career
Osaka was less than two years old when Serena Williams won her first Grand Slam title in 1999 by winning the US Open. Nineteen years later, history has come full circle and there has been a kind of handover of the stick. On the Flushing Meadows courts, the Japanese defeated the then dominator of women’s tennis in two sets. The generational change took place first in terms of sports, and then in terms of business. It was Williams who for many years was the queen of earnings in female sports. As you can see in the graphic below, professional tennis is the best strategy to generate record revenues for women.
Naomi Osaka turned professional in 2014, a month before her 16th birthday. In 2016, she was promoted to the top 40 of the WTA rankings and won her first title in March 2018 by winning Indian Wells. Over the next 12 months, she became the first Japanese player to win a Grand Slam tournament. Then, as the first Asian woman, she became the leader of the WTA ranking. However, since then, the new sports icon has experienced many ups and downs. Osaka’s impact on the world of sport and the wider community, as well as its public perception, have changed dramatically over the last several months. You can safely use the phrase that she has gone the way from a gifted to a respected athlete.
With the three Grand Slam titles won, Osaka began to struggle with public speaking. “I am not a natural public speaker and get huge waves of anxiety before I speak to the world’s media”, Osaka wrote after withdrawing from the French Open. She then referred to mental health problems. “I think the amount of attention I get is kind of ridiculous. No one prepares you for that. I always had this pressure to maintain this squeaky-clean image, but now, I don’t care what anyone has to say” – stated the tennis player in an episode of a recently released documentary about herself on Netflix.
The financial empire of the Japanese
Osaka’s cooperation with IMG
Only a little over 5 million dollars of the total earnings comes from cash prizes from winnings on the court. The rest is made up of lucrative sponsorship deals with companies from around the world. All Osaka’s business matters and contracts are handled by IMG – one of the largest tennis agencies in the world. In the past, IMG has already represented the interests of athletes such as Maria Sharapova, Kei Nishikori and Na Li. And it was these athletes who somehow paved the way for the marketing breakthrough and growth of the Japanese woman. “We were fortunate to have a very sophisticated office in Tokyo that already had the experience with Kei. The relationships in that region are important” – IMG tennis chief Max Eisenbud said last year.
Osaka’s agent, Stuart Duguid, found that a Japanese woman could be negotiated at a higher level than other athletes. During the talks, it is no longer just about money, which is undoubtedly a luxury that only a few players can afford. When Sharapova was 17 years old and defeated Williams in the Wimbledon final in 2004, the IMG agency quickly mobilized to concrete actions. They resulted in the signing of lucrative long-term contracts for the Russian woman. Thanks to this, she was the best-paid player in the world for 11 years. Later, however, injuries and suspension for taking banned substances significantly reduced her earnings. It was then that Williams took her place on the payroll.
In the following years, the portfolio of IMG expanded in the field of marketing through the representation of Na Li. It is worth emphasizing that Li was the first Asian Grand Slam champion, thanks to her victory in the French Open in 2011. The IMG agency quickly arranged for Chinese 7 contracts worth about 20 million dollars. The next step in the company’s development was attracting new sponsors for Kei Nishikori. The Japanese is the most successful Asian tennis player in history, with earnings of up to 30 million dollars a year.
Demographic changes in tennis
Tennis is the only sport in which women can find themselves next to the highest-earning male sports stars. The highest-paid athlete every year, since Forbes began analyzing data in 1990, has always been a tennis player. In the 90s, these were, among others, Steffi Graf and Martina Hingis. Tennis fan demographics make sponsoring top players attractive to brands. At the 2019 US Open, attendance tilted 56% to 44% in favour of women, which is rare at major sporting events. In addition, 78% of viewers had at least a bachelor’s degree, and the median household income was 216,000 dollars. It is undoubtedly a community with a stable financial situation, ready to buy luxury products from companies sponsoring tennis players.
The largest brands supporting Osaka
Naomi Osaka currently has over 15 sponsorship agreements with global companies operating in a variety of industries. The value of almost all of them reaches seven-figure amounts. The history of the first of them dates back to 2008. Naomi’s mother, Tamaki Osaka, sent a letter to president Yonex in Japan asking for support in the form of sports equipment. The company immediately saw the potential of the young player who uses Yonex rockets to this day. Some people believe that a partnership is a long-term contract. On the other hand, voices from other sources say that this is a career contract between the interested parties.
Nike
A contract with a clothing company is usually the biggest source of revenue for tennis stars. Osaka was lucky that after winning two tournaments of the Grand Slam rank, there was a kind of bidding war between companies such as Nike and Adidas. The latter was the former sponsor of the Japanese, while Nike was more determined to start cooperation with Osaka. Ultimately, it was the American clothing company that turned out to be the winner, offering the tennis player over 10 million dollars a year under a contract that runs until 2025.
The details in this contract are also important, as Osaka has secured an extremely rare but lucrative contract clause. The sportswear giant always requires tennis players to wear Nike gear from head to toe, with no other logos on their shirts or caps. Even for stars such as Serena Williams, Maria Sharapova, John McEnroe and Andre Agassi, no exception was made. This fact only shows the market situation and the negotiating position in which Naomi Osaka is currently located.
Louis Vuitton
In January 2021, the French fashion house Louis Vuitton introduced Osaka as the new brand ambassador. Although the financial terms of the contract have not been made public, it is estimated that the contract is for a seven-figure amount each year of the contract. “Aside from tennis, my most treasured passion is fashion, and there is no brand more iconic than Louis Vuitton” – said Naomi Osaka in an interview with Vogue. “It is such an honour to work with Nicolas – he’s a designer I admire so much and we share a mutual love of Japanese culture and style. To become a global brand ambassador is truly a dream come true for me”. Shortly after signing with Louis Vuitton, Osaka added Tag Heuer to her list of advertising deals. In this way, the luxury Swiss watchmaking company increased its elite group of brand ambassadors. Currently, they include tennis player Petra Kvitova and golfer Tommy Fleetwood.
These brands are not the only international tycoons in their fields that fought fiercely for cooperation with Osaka. Mastercard announced that it had signed a contract with the Japanese star just before the 2019 French Open. Details of the deal are kept secret, but the main factor influencing the interest in the tennis player was the company’s expansion into the Asian market. In turn, All Nippon Airways is the largest airline in Japan, of which Osaka is also an ambassador. Yuki Hirako, president and CEO of ANA, said: “We are very pleased to partner with Naomi Osaka. She was born in Japan and raised in the U.S., echoing both ANA’s Japanese roots and its global ambitions”. Panasonic and Nissan are also well-known brands that have a sponsorship agreement with Osaka.
The essence of smaller sponsors
However, apart from the biggest players on the market, there are also smaller ones with ambitious development plans in the coming years. This is a very important target for Osaka from a marketing point of view. “I’m really interested in seeing a young business grow and adding value to that process. I tasked my team with finding brands that align with my personality and my interests” – the tennis player said in an interview for Forbes magazine. It is for this reason that brands are lining up to enter the business in partnership with Naomi Osaka.
Bodyarmor and Osaka’s investments
In 2019, Osaka signed a contract with Bodyarmor. The company’s primary goal is to stay ahead of Gatorade and be the world’s number one sports drink by 2025. The Japanese became involved in Bodyarmor through the persuasion of the late Kobe Bryant. He gave her considerable support after gaining huge media coverage. Founded in 2011, the company had just 0,2% of the market share in 2014, which had risen to around 10% before the signing of the Osaka deal. It is based on this data that Forbes expects the company to become a market leader by dethroning Gatorade. Bodyarmor Marketing Director Mike Fedele said Osaka was one of the inspirations behind the „Only You” advertising campaign. “Naomi is fiercely dedicated to perfecting her game on the court and a huge part of that is what she does off the court with her training, nutrition and hydration”. The indicated elements form a coherent whole, in the context of matching the brand to a tennis player.
In 2020, Osaka joined Soto as an investor and creative consultant. In addition, it has partnered with Strathberry to introduce a new line of handbags. He also works with Beats by Dre, Hyperice, Shiseido, Nissin, Wowow and Sweetgreen. But Osaka not only earns, but also invests just like in Soto. In January 2021, she became an investor in the North Carolina Courage of the NWSL, making her part of the team’s ownership group. She also holds equity stakes in Hyperice. Osaka has also created her line of Kinlò skincare products. They emphasize the protection of the skin of people of mixed origin. Interestingly, even the name of the cosmetics is not accidental. “Kin” means “gold” in Japanese, while “lò” means “gold” in Haitian.
The marketing value of Naomi Osaka
The first question addressed to a potential new business partner is what the brand represents and whether it is in line with the tennis player’s values. Osaka’s second priority is to work with the brand in which it can be directly involved. As Chris Thorne, Beats by Dre Marketing Director, where Osaka starred in one of the campaigns, said: “The fact that she’s described as a female athlete is a miss. She’s as big and impactful as anybody on the planet right now”.
Taking specific positions and social responsibility
The marketing phenomenon of the Japanese, however, did not come from anything. Osaka’s popularity grew considerably after she decided to speak out against social injustice more loudly. The athlete flew to Minneapolis to protest against George Floyd’s death in May 2020. She also boycotted her semi-final match at the Western & Southern Open, joining the athletes and teams against shooting Jacob Blake. These activities were, among others, the genesis of signing another contract with Workday. The company agreed to a new sponsorship deal with Osaka after a tumultuous 2020. Back then, the tennis player was widely praised for raising awareness of racial injustice. Mainly it should be mentioned supporting the Black Lives Matter (BLM) movement during the second time winning the US Open tournament. At that time, she put the names of victims of police brutality on her protective masks. Based on this, Workday named Osaka as “the leading voice of the social justice movement”.
Commenting on such topics by athletes was once a death sentence from a marketing point of view. But times change and Osaka experiences the opposite. Bob Dorfman, a sports marketing expert at Baker Street Advertising concluded that: “Now, everybody talks about brands taking a stand. Osaka stands up for what she believes in and comes across as very real”. The tennis player constantly uses her growing authority to help others and draw attention to relevant topics. Social justice and awareness of mental health are certainly among them. It was the latter that strongly influenced Osaka’s position in the world of sports.
Athlete’s mental health
French Open 2021
The dispute that led to Osaka’s withdrawal from the French Open 2021 began when she announced on social media that she would not attend press conferences during the tournament to protect her confidence and mental health. “I’m writing this to say that I’m not going to do any press during Roland Garros. I’ve often felt that people have no regard for athletes’ mental health and this rings true whenever I see a press conference or partake in one. We’re often sat there and asked questions that we’ve been asked multiple times before or asked questions that bring doubt into our minds and I am not going to subject myself to people who doubt me” – Naomi wrote on her Twitter profile.
After fulfilling her promise to “protect her mental health”, the tennis player was fined 15,000 dollars. As a result, she withdrew from the entire tournament. Sponsors choose to pay large sums of money to the top players expecting them to reach key phases of major tournaments. In this way, they advertise in the form of a huge exposure during the airtime during the games. This is another example of an attitude that would have undoubtedly resulted in renegotiation or even termination of sponsorship contracts in previous years. However, this is not the case with Naomi Osaka. Michael Lynch, former director of global marketing at Visa, notes that five years ago, companies might not have supported Osaka’s decision to withdraw from a tournament of this rank. He also states that: “Today more and more companies are liking the honesty and the openness of the athletes”.
Sponsor support
The Japanese tennis player thus creates various stories that the sponsors just want to be part of. This is why so many of them stood up for it, despite criticism from fans and other players. Nike quickly released a statement saying that: “Our thoughts are with Naomi. We support her and recognize her courage in sharing her own mental health experience”. On Twitter, Mastercard commented on the situation as follows: “Naomi Osaka’s decision reminds us all how important it is to prioritize personal health and well-being. We support her and admire her courage to address important issues, both on and off the court”.
In addition, brands such as Hyperice, Levi’s, Nissan, Nissin, TAG Heuer, Sweetgreen and Beats Electronics have offered their support through similar statements. Mental health issues have attracted more attention in the sports world in recent years. Even Michael Phelps was among the stars who shared their personal experiences.
Politics and the world of sport and business
“The sports world can teach the business world a valuable lesson because the business world has got to wake up on mental health too” – Lynch added. Recent changes in the political climate have also forced companies to take up social positions. In particular, consumers from Generation Z and younger Millennials want to know what a given organization identifies with and what it supports. As a result, the silence of sponsors may be counterproductive in the long run.
“I don’t think it is acceptable anymore. Consumers are less tolerant to companies that don’t take positions. It is just the changing behaviour of consumers. We expect more from companies today than we did 10 years ago” – said Ricardo Fort, former vice president, Coca-Cola’s Global Sports and Entertainment Partnerships. He also added that: “In this day and age when athletes are very vocal and have access to their fans through social media, companies know that when they sign a sponsorship and endorsement contract with any athlete, you are not signing up for the athletic parts of their lives. You’re signing up for who they are, what they believe”.
Summary
Naomi Osaka’s multicultural background has given her a strong bond with fans both in all three countries of her hometown and in other continents. “She really touches all continents, which very, very few, if any, athletes do, and she’s biracial and female at an interesting time in history” – said Duguid. “She’s very representative of people her age, in that she’s authentic – what you see is what you get with her. So, all those things together kind of add up and it’s been, I suppose, the perfect storm”. For people not related to tennis daily, Osaka is a relatively new face with an interesting background not only in terms of sports but also in social and cultural aspects. The result of these factors is the emergence of a new global sports marketing icon.
The Osaka phenomenon is also showing changes in the way brands approach athletes. However, it should be borne in mind that not all Osaka’s actions are accepted and endorsed by the majority of the public or athletes. While the involvement in the BLM movement was supported by players from other disciplines, the decision to boycott press conferences during the French Open was not approved by other players, such as Rafael Nadal, Iga Świątek or Ashleigh Barty.
The future of women’s tennis
Each of us has to answer for himself what in his opinion is right and what is not, but changes in behaviour in society are visible in today’s world with the naked eye, which directly affects the image and position of athletes such as Naomi Osaka, mainly through the huge involvement of the largest organizations in the world. For this reason, one may wonder what direction the career of another new, young star, Emma Raducanu, will take. She is a player born in Canada, representing Great Britain, whose father is from Romania and mother is from China. Like Serena Williams and Naomi Osaka, Raducanu also won her first Grand Slam title at the US Open (in 2021). She already has the foundations for achieving success in the form of mixed origins (just like Osaka). The only question is whether she will be also equally involved in social life and political events in the world.
