Sports brands are increasingly using equity, product development, and long-term collaboration alongside traditional sponsorship payments. On’s partnerships with Roger Federer and Kylian Mbappé offer a clear example of how the model is evolving.

Why You Should Care

For decades, the economics of athlete sponsorship were relatively straightforward: a brand paid an athlete to wear, use, or promote its products. However, a growing number of partnerships are adding another layer. Thus, giving athletes an ownership interest in the companies they represent and, in some cases, a role in developing the products themselves.

That changes what the relationship can mean for both sides. A sponsorship fee compensates an athlete for their commercial value over the term of a contract. Equity gives them an interest in the company’s future value. Meanwhile, a product development role can give the brand access to expertise that goes beyond an athlete’s audience and visibility.

Recent sports business analysis identifies athlete equity deals as an increasingly common structure. The value largely depends on how the structure of equity, responsibilities, and protections.

The Details

The traditional athlete endorsement model treats the athlete primarily as a marketing asset. The newer ownership model can make the athlete a participant in the business itself.

One structure is not necessarily replacing the other. Instead, brands can combine a conventional financial payment with shares or other forms of equity. Thus, creating a relationship in which the athlete has a direct economic interest in the company’s performance.

On provides one of the clearest examples. The Swiss sportswear company made Roger Federer a co-owner in 2019, involvinh him in product development, marketing and fan experiences. Seven years later, it has adopted a similar approach as it enters football, with Kylian Mbappé joining the company under an agreement that includes both cash and equity. The relationship was presented as an entrepreneurial partnership rather than a conventional sponsorship. 

The arrangement subsequently became closely connected to product development. On’s filings with the US Securities and Exchange Commission said Federer joined the company as an active co-entrepreneur and investor. This is alongside working with the company on its tennis products. The resulting Roger franchise became part of On’s broader product offering.

The model is now appearing again with Mbappé. On announced its entry into football in September 2026, with Mbappé joining as a global ambassador and product collaborator. Reuters reported that his agreement contains both cash and equity components. However, the financial value and size of his equity stake have not been disclosed. 

The reported structure goes beyond putting a famous athlete in advertising campaigns. Mbappé is expected to participate in the development and testing of On’s football footwear and apparel.

This makes the athlete relationship part of the product strategy itself. Mbappé brings football expertise, competitive experience and global recognition, while On brings its technology, manufacturing approach and existing brand platform.

The Ripple

The shift toward athlete ownership is broader than one company or one footballer.

For brands, equity can create a longer-term relationship with an athlete than a conventional endorsement contract. Instead of paying solely for access to an athlete’s audience, a company can structure the relationship around ownership, product input, or other forms of participation.

That distinction is particularly relevant when the athlete has expertise that can influence the product. On’s relationship with Federer illustrates this directly. The company says his involvement helped shape its tennis products, while its SEC filing describes his contribution to product development and marketing.

The same logic is visible beyond sportswear. Naomi Osaka’s partnership with Sweetgreen, for example, was structured as an equity deal rather than a conventional celebrity endorsement. Sweetgreen described the relationship as a partnership exploring product and impact initiatives, while contemporary reporting identified it as an equity arrangement. 

The economic attraction for athletes is different. Equity can potentially give an athlete exposure to the growth of a business beyond the period in which they are actively competing. But it also differs fundamentally from guaranteed sponsorship income because its eventual value depends on the company’s performance and on the terms attached to the ownership.

For brands, meanwhile, giving equity means sharing ownership rather than simply allocating a marketing budget. That can make the structure more complex, particularly around valuation, vesting, governance, liquidity, and the athlete’s responsibilities. Sports law analysis has highlighted these structuring questions as central to determining whether an equity partnership creates lasting value. 

On’s experience also shows why the distinction between endorsement and entrepreneurship matters.

Federer joined On when it was still building its position in sportswear and subsequently became involved in creating products. Mbappé is arriving as the company moves into a new category. In both cases, the athlete’s value is being connected to more than promotional reach.

Mbappé therefore works as a prominent case study within a broader commercial model: an athlete can become part of how a brand develops, enters or expands a market, rather than simply becoming the face of an existing product.

What to Watch

The next phase will show how far the model can extend beyond high-profile individual deals.

For athletes and brands more broadly, the details of these agreements will also matter. The public announcement of an equity component does not by itself reveal how much ownership an athlete receives, how that stake is structured, or how much of the relationship is tied to product development.

What is becoming clearer is the underlying shift in the commercial relationship. The athlete is no longer necessarily being paid only to promote the product. In some partnerships, the athlete is becoming part of the business building it.

That makes equity one of several tools brands can use to turn an endorsement relationship into a longer-term commercial partnership, with On’s Federer and Mbappé relationships providing two prominent examples across different stages of the company’s expansion.