Michael Phelps is the most famous and decorated swimmer in history. Heck, he鈥檚 the most decorated Olympian in history, with 22 medals to his name.
So when he decided to sign a six-year deal with relatively unknown Italian swimwear brand this week鈥攚hen he could鈥檝e re-upped with long-time sponsor Speedo or inked lucrative deals with just about anybody鈥攈e turned heads. The company . But his decision to go small may just make him one of the most powerful names in sports.
Phelps isn鈥檛 the first Olympian to shun big-name endorsements for boutique brands. As we reported in March, seven-year-old running company Oiselle stole Kara Goucher away from megabrand Nike by promising more flexibility in her sponsorship contract and more input in product design.
While she had to be covered head-to-toe in Nike in the past (shoes, clothes, watch, glasses), Goucher鈥檚 new setup let her negotiate a sponsorship package with a more diverse roster of brands. (For example, in addition to Oiselle, Skechers sponsors her, too.) Ultimately, that gives Goucher more control over her own image and schedule.
Just as appealing to Goucher was the opportunity to 鈥減articipate in clothing and design decisions, instead of just being told what to wear,鈥 we reported. Though the details of Phelps鈥檚 new contract weren鈥檛 released, it鈥檚 clear from that Phelps and his coach Bob Bowman will have a large role in product design. That gives Phelps not just the satisfaction of having created something for his beloved sport, but also the chance to build a legacy that lasts long after his final competition.
鈥淭his is similar to聽聽in basketball,鈥 Mark Sunderland, a textile engineer and strategist at Philadelphia聽University. In 1984, Jordan signed on with Nike, a sports brand that was pulling in less than $1 million annually in sales, the . Nike promised Jordan input into the design of the shoes that would bear his name and, eventually, the logo of his body flying through the air to a slam dunk.
Jordan鈥檚 image and expertise sold the shoes, and continues to sell them 10 years after he last laced them up to play an NBA game. 鈥淛ordan Brand sneaker business alone had $1.25 billion in wholesale revenue in 2012,鈥 .
Just like Nike did for Jordan 30 years ago, Aqua Sphere promises to do for Phelps. That is, give him control over products that will bear his name, and let him build a lasting empire from which both Aqua Sphere and Phelps will benefit (and, you know, fans and customers). 鈥淩oyalties now generate more than $60 million annually for MJ,鈥 Forbes says.
Looks like Phelps just took on a passion project that could set him up for long-term riches.聽