How elite athletes, like Mohamed Salah, diversify their income streams through endorsements, personal branding, and strategic investments.
In the contemporary world of professional sports, elite athletes are not only icons on the field but also financial powerhouses off it. High-profile athletes leverage their sporting success to build extensive business portfolios, establishing themselves as global brands.
As announced on Monday, AliExpress, Alibaba’s international e-commerce platform, has signed soccer star David Beckham as its global brand ambassador. This partnership marks the platform’s most significant global ambassador deal to date. “AliExpress is helping fans get even closer to UEFA EURO 2024™ this summer, by offering them great prizes as the action takes place on the pitch,” David said in his only statement in the press release.
David’s involvement comes as AliExpress joins other Chinese companies in sponsoring the UEFA European Soccer Championship, which begins mid-June. AliExpress plans to invest millions of Euros in discounts, deals, and engagement activities during the championship, including opportunities for app users to win tickets to the games.
The Athlete as a Brand
One of the most significant transformations in the sports industry over the past few decades is the evolution of athletes into brands. Mohamed Salah, a prominent figure in international football, embodies this shift. His earnings extend far beyond his Liverpool salary, which itself is substantial. According to a detailed analysis by The Athletic, Salah’s off-field earnings are bolstered by various high-profile endorsements and commercial activities.
Mo’s primary income stream remains his football salary, estimated to be between £18 million and £21 million annually following his contract renegotiation with Liverpool in 2022. However, this is merely the foundation of his financial empire. The broader picture of Mo’s earnings reveals a sophisticated web of endorsements and commercial deals, orchestrated to maximize his brand value.
Endorsements and Sponsorships
Endorsements are a critical component of an athlete’s income. For Mo, deals with global brands such as Adidas, Pepsi, Vodafone, DHL, Uber, Oppo, the Bank of Alexandria and real estate company Mountain View play a pivotal role in his financial portfolio. Each partnership not only enhances his visibility but also brings in substantial revenue. For instance, The Athletic reports that his endorsement deals typically range between £3.5 million and £6 million annually per contract. These figures underscore the lucrative nature of such agreements, significantly supplementing his football income.
The appeal of Mo to these brands is multifaceted. His success with Liverpool, including winning the Champions League and the Premier League, cements his reputation as a top-tier athlete. Additionally, his cultural and linguistic connections to the Arab world provide brands with a unique opportunity to tap into a vast and growing market. Mo’s prominence in regions like North Africa and the Middle East positions him as a prime candidate for companies looking to expand their footprint in these areas.
Social Media and Digital Presence
In today’s digital age, social media plays an integral role in an athlete’s commercial appeal. Mo boasts a formidable social media presence, with close to 100 million followers across platforms like Instagram, Twitter, and Facebook. As well as more than 35million followers on X and Facebook, he can reach more than 63million on Instagram. That is a fraction of the 628million followers built up by Ronaldo but Mo comfortably boasts the biggest following of any Premier League player, with Erling Haaland next best on 39 million.
This massive following not only reflects his popularity but also provides brands with a direct line to his fanbase. Sponsored posts, advertisements, and brand collaborations on social media are lucrative avenues for additional revenue. Mo’s Instagram account, for instance, is a prime example of how athletes can monetize their online presence. A single post featuring a brand can garner hundreds of thousands of likes and significant engagement, translating into substantial advertising value.
Personal Ventures and Investments
Beyond endorsements and social media, elite athletes often venture into personal business endeavors and investments. Mo is no exception. His company, Salah UK Commercial Limited, handles a portion of his off-field income. This corporate structure allows for efficient management of his earnings and strategic investments, often benefiting from favorable tax conditions. The company’s recent filings, according The Athletic, revealed a balance sheet of over £25 million, up from the £19.8m 12 months earlier — a year-on-year bump of more than £5m after taxes.
It is a fraction of the wages earned by Salah at Liverpool but laid bare in those returns is a glimpse of the Egyptian’s enduring commercial appeal, his growing wealth and savvy financial management.
Yes, created by AI, of course.
Investments in real estate, technology startups, and other business ventures are common among elite athletes looking to diversify their portfolios. These investments not only provide financial returns but also secure long-term financial stability beyond their playing careers. For instance, NBA legend Shaquille O’Neal has successfully invested in various businesses, including franchises of popular food chains and technology companies, showcasing a blueprint that other athletes can follow.
The Global Impact of Athlete Brands
The global reach of athlete brands is another factor contributing to their financial success. Mo Salah, for example, is a household name not only in the UK but also in Egypt, the broader Middle East, and across the globe. His involvement in international campaigns, such as those with Pepsi and Adidas, amplifies his brand presence and ensures sustained commercial interest.
Marketing experts highlight Mo’s unique position as an icon in the Arab world, a market with significant potential. His cultural relevance and the ability to communicate directly with millions of fans in their native language make him an invaluable asset to brands aiming to penetrate these regions. This cultural connectivity is a powerful tool in creating authentic and impactful marketing campaigns, driving higher engagement and loyalty among consumers.
Future Prospects and Challenges
While the current landscape is favorable, the future for elite athlete brands is not without challenges. The evolving digital landscape, shifting consumer preferences, and increased competition from emerging athletes pose continuous challenges. However, athletes like Mo Salah, with robust brand management strategies and diversified income streams, are well-positioned to navigate these changes.
The ongoing discussions about Mo’s future beyond Liverpool highlight the dynamic nature of an athlete’s career and its impact on their commercial value. Whether he stays in the Premier League or moves to a different league, such as the lucrative Saudi Pro League, will significantly influence his marketability and earnings potential. These decisions are not just about the sport but also about maintaining and growing his brand value.
Bottom Line
Elite athletes today are more than just sports stars; they are global brands with diverse and substantial income streams.
Brand Mo Salah is thriving, bolstered by lucrative partnerships with Adidas, Pepsi, Vodafone, and more. His image rights and commercial activities top up Mo’s combined earnings to somewhere close to £1m a week, according to his advisor Ramy Abbas Issa. This positions Mo as one of the most marketable footballers globally, trailing only the likes of Ronaldo, Messi, and Neymar.
Mo’s influence extends beyond football, making him a beacon for brands seeking visibility in the Arab world. His huge social media following further cements his status. For Liverpool, Mo Salah’s commercial value complements his on-field prowess, ensuring a mutually beneficial relationship.
Mohamed Salah’s financial strategy exemplifies how modern athletes leverage their on-field success to build extensive business portfolios. Through endorsements, social media influence, strategic investments, and cultural connectivity, athletes like Mo continue to redefine the financial landscape of professional sports.
As Mo enters the final stretch of his contract, the question remains: where will this commercial powerhouse head next? The Premier League’s most valuable marketing asset continues to redefine success both on and off the pitch.
>> Back to Insights to find more articles.