Roger Federer hit by $52m paper loss as On Holding shares tumble

Roger Federer has seen his estimated fortune fall below $1bn after a sharp decline in the value of his stake in Swiss sportswear company On Holding.

The former tennis player’s wealth has dropped from about $1.1bn to approximately $952m, according to Forbes, meaning he is no longer considered a billionaire.

Federer owns about 2.5% of On Holding, one of the most successful business investments made during his post-playing career. The company’s shares fell by 19% four days ago, reducing the value of his holding by more than $52m.

The fall came after On Holding published its financial results for the second quarter. Its net sales were below market expectations, prompting a significant drop in the company’s share price.

Federer’s interest in the business had previously been valued at more than $500m. However, the decline in the stock’s value has substantially reduced the worth of that investment and, in turn, his overall fortune.

The 20-time Grand Slam champion became involved with On Holding in 2019, acquiring shares while also playing an active role in the development of some of the company’s products. His involvement went beyond providing capital, with Federer contributing to the design of several items, including The Roger tennis shoe range.

The partnership was part of a wider effort by Federer to build a business portfolio during and after his career on the court. He became involved with fashion brands, established an agency to represent athletes and launched his own tennis competition, the Laver Cup.

Federer, widely regarded as one of the greatest tennis players in history, retired from professional tennis in 2022. Much of his wealth was accumulated through his playing career, endorsements and commercial ventures, which enabled him to diversify his income through a range of investments.

The report of his change in financial status was published by the newspaper Sport. Forbes’ revised estimate places his wealth at around $952m following the latest movement in On Holding’s share price.

The loss is described as a reduction in the value of Federer’s stake rather than a direct cash payment. His holding alone had lost at least $52m as a result of the 19% fall, with the wider decline in the company’s market value affecting the calculation of his total fortune.