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August 11, 2003
Alone At The Top
By Douglas Robson, Tennis Week
When
Roger Federer received a 1700-pound heifer from tournament organizers
at the Swiss Open the week after winning Wimbledon, no doubt agents far
and wide were grumbling, "See what you get without proper
representation?" To be fair, the cow, which Federer named Juliette, was
a gift — not the fruits of hard-fought negotiations with the farming
community in Gstaad.
The bovine bounty aside, Federer
has taken an unusual step in his business career. The young Swiss star is going
it alone in the complex world of professional management, marketing and sponsorship.
In short, he’s without an agent.
After several years with IMG, the
21-year-old split from the Cleveland-based mega-firm in mid June — just
prior to his Wimbledon victory. Instead, Federer is being represented by his
father, Robert, a chemical technician; his mother, Lynette, a homemaker; his
girlfriend and (currently injured) tennis pro, Mirka Vavrinec; and an assemblage
of outside lawyers, accountants and advisors. Team Federer is even incorporated.
The decision to circumvent traditional
agencies is hardly unprecedented in tennis. John McEnroe Sr. handled son John’s
business dealings for a number of years. Mario Widmer, the boyfriend of Martina
Hingis’s mother, took on much of the former No. 1’s deal-making responsibilities.
And Andre Agassi, after years with IMG, chose to turn over the bulk of his business
dealings to childhood friend Perry Rogers.
Not everyone thinks Federer’s
decision is one worthy of a Wimbledon champion — not least of all, other
agents. "I think it’s a relatively myopic approach," says Ken
Meyerson, a vice president with SFX Sports Group’s tennis division, adding
that navigating the crowded and competitive global marketplace is not for amateurs.
Meyerson, whose firm represents the likes of Paradorn Srichaphan and Fernando
Gonzalez, is equally blunt when he says that Federer could potentially lose
"tens of millions of dollars over the course of his career" by foregoing
more professional management.
Octagon’s Tom Ross, who represents
Lleyton Hewitt, among others, agrees. "Based seemingly on a less-than-productive
experience in the past, the Federers may not fully understand or appreciate
the benefits of full-service management and expertise," says Ross.
Agents also point out that Federer’s
marketability poses particular challenges because of his nationality. Switzerland
has a small population, is home to many languages and has distinct cultural
differences.
But Federer has a better chance than
most in making his new arrangement work. "Everyone in tennis has been waiting
for Roger to go the distance at a Grand Slam; so he’s not a flash in the
pan," says Ross. "He’s got a lot of upside."
Only time will tell if the move is
a good one. "Our game desperately needs stars," says Meyerson. "I
hope the decision of Federer to isolate himself will not hurt the game."
What does Team Federer have to say
about it all? Tennis Week caught up with Federer and his girlfriend Vavrinec,
once ranked as high as No. 76, at their home in Bottmingen at the end of July.
Here’s their take:
TW: Roger, you don’t
have an agent. Is this why you got a cow after Wimbledon and not a Ferrari?
RF: (Laughs) No, it was a
present from the tournament in Gstaad. It wasn’t something I bought. I
hope it’s going to be there when I go back.
TW: Why don’t you have
an agent?
RF: Well, it’s a long
story. I had a manager, Bill Ryan, through IMG. It’s complicated. Somehow
I wasn’t allowed to work with him anymore. So I said, “If I can’t
work with my manager, I don’t want to be with the company any longer.”
I don’t want to say that I lost trust, but I just wasn’t happy with
the way things went. I just decided that the best thing right now is to work
with people I trust. These are my parents and my girlfriend and my friends.
This is the situation. I just want to give it a try. Hopefully, it’s going
to work out.
MV: (Roger and IMG) were long
enough together and I think Roger just wanted to try something else. IMG is
very big. You are just one of many. Roger is a very sensitive person and it
was not always the way he wanted; so now he is trying something new. He is getting
older and he is making his own decisions.
TW: How long were you with
IMG?
RF: Since around 16 (years
old). Since I was a teenager.
TW: Mirka, how did you become
part of Roger’s management team?
MV: It started as a hobby.
It was around the time of my foot operation last year (in May). I began with
booking flights and hotels. Roger is not alone; so I did it for his whole team.
They were always late, you know, in booking. I loved to do it because I was
playing tennis myself before and I never had an agent. I did everything myself
from the beginning. The thing is, Peter (Lundgren, Federer’s coach) lives
in Sweden; Roger lives in Switzerland. You need a combination of teamwork and
lots of communication. You don’t have a business plan like a businessman.
They need somebody flexible and I am very flexible and Roger can call me anytime.
TW: How do you juggle it all:
the media demands, the product endorsement opportunities, contract negotiations,
etc.?
MV: We talk and we put the
heads together. The parents do the contract negotiations when it comes to (specific)
points. I do the press, the e-mail, the fan posts, the perfume (the new Roger
Federer Line), the hotels, the flights. Really, my days are sometimes too short
(laughs).
TW: Do you get a percentage
of the deals?
MV: No. For sure, later, maybe
I’ll get a salary or something. It’s a company. Everybody is working
for Roger but we don’t get a bonus or a percentage from deals.
TW: So you’re doing everything
for free?
MV: Well, at the moment, yes.
Of course, it is not a long time ago that Roger split from IMG. We had to wait
until the contract was finished and then we had to form a new company, which
was not very easy.
TW: You are now a company?
MV: Yes, it’s called
Hippo In-house Management.
TW: Why Hippo?
MV: It’s just a name.
TW: Roger, how is it working
so far?
RF: It’s quite fresh,
quite new. Of course the Wimbledon victory didn’t help the cause because
right now (his parents and Mirka) have more pressure on them. Everybody wants
to know everything. That’s why I’m trying to keep it quiet around
the management because we’re trying to settle a few things. Not everything
is in place yet. My dad is already in negotiation with tournaments, with companies;
so we just need a little more time to settle everything.
TW: What’s your mom’s
role?
RF: She’s kind of like
a secretary, giving an overview, a little bit of everything. She’s writing
letters because her English is much better than my dad’s.
TW: How does Team Federer
work?
MV: Everyone has his role
and his job. We have a lawyer and a tax person who is watching everything and
making sure everything goes well like we had at IMG. But this is more private.
We know who the people are. We choose them. And they are not far away.
RF: We haven’t had time
yet (to figure it all out). We have had a few offers on the table. We talk about
it. When I’m home we have to do a lot of meetings, which is OK. Then we
decide what to do. Also they speak between themselves, especially my mom and
dad, and they decide what’s best for me and also ask for some advice once
in a while.
TW: Is this a “between
agents” strategy?
RF: No, this is something
for long-term.
TW: Do you feel qualified?
MV: Well, I think to deal
with the press, and especially now, this was really a big test for me because
if somebody wins Wimbledon — I think you know what it means. I had such
a tough time for one week (after Wimbledon). It was not hell, but terribly busy.
(The phone) was ringing non-stop. All the press, everyone was calling me, everybody
needed an interview and appointments and offers and TV and everything.
TW: Have you negotiated any
deals yet?
MV: Not really, no.
TW: How did you decide to
do it this way?
RF: Before, we had nothing
to decide. IMG made all the calls. I trusted in my manager with all the deals
he made. Of course in the end, I always decided which tournaments I’m going
to play and which sponsors I work for or present myself with. I always could
do it. I will get much more inside now, see how everything works. It’s
very interesting. Maybe I’ll be a little more involved in the beginning
to help out both of my parents. Then I want both of them to take more initiative
themselves. And I trust them also.
TW: Is it working so far?
RF: Obviously things have
changed if you become a Grand Slam champion, especially Wimbledon. Your market
value goes up, you’re more famous in the world. I showed signs before my
Wimbledon title, but now I made a really big step ahead by winning at my age.
Now we’ll see how many people will want to sponsor me (laughs). I hope
it will be a lot. I hope international people will want to sponsor me, not only
Swiss enterprises.
TW: Have other players asked
you how you do it without a management company or agent?
RF: Not really. Some have
asked more for advice, what they think they should do.
TW: Do you know any other
top players without agents?
RF: Well, Martina Hingis didn’t
have a manager for some time. She had the husband of her mom that was doing
a lot of her stuff. Otherwise, I don’t know too many. Some just don’t
have the management system because they don’t need one because they’re
not well ranked.
TW: Maybe it’s a Swiss
thing?
RF: Who knows (laughs)?
TW: Would you recommend other
players do this?
RF: Yes and no. It depends
on how much they want to be involved in their career. In the beginning I was
never interested in anything that happened around me. Now I really want to know.
You ought to do it with people you know and trust. IMG and other such big companies,
with them you don’t have the control anymore. You sign the paper and you
give them control. You just have to stand behind it.
TW: What are the advantages?
RF: I feel good about what
I’m doing. That’s most important so I can mentally relax when I go
on court. It’s just interesting to see and it’s important that I know
a little bit about what’s going on.
TW: What are the disadvantages?
RF: I don’t know how
IMG really worked sometimes, how they made their deals. I wasn’t sitting
at the table. It’s tough to say what is the disadvantage. They have a lot
of power being such a big company, which maybe we don’t have.
TW: Mirka, have you given
up your career to do this?
MV: I wouldn’t say I
gave up my career. After the operation (for chronic inflammation), I did everything
first for myself to get back and to come back on the tour.
TW: Then you’re not retired?
MV: No, I’m not retired
yet. I still have a protected ranking for one more year. But I’ll see.
The perfume is coming out (at the end of September) and Roger is playing very
well. At the moment I am really happy with my life and I’m enjoying what
I do.
TW: What happens if you break
up?
MV: I guess he has to find
another secretary or something or a lady (laughs). I don’t know. We said
if this ever affected our relationship he would find another person to do it
because our relationship is just too important.
TW: How long have you been
together?
MV: Three years, almost.
TW: Would you do the same
for Mirka?
RF: I think I would, if I
were injured.
TW: In sum, it’s like
a new family business venture, isn’t it?
MV: Yes, he is like a company.
For Roger, I think I’m a big help, and with the parents, too. They are
very involved in Roger’s life. I live with him. We are under one roof.
We are a great team!
TW: Anything else you want
to add?
RF: It’s new and we have
to wait and see a little bit. In (six months) or a year’s time it’s
going to be totally different, better organized. Ask me then and I can tell
you more details maybe about the situation!
Douglas Robson has written for
Business Week and USA Today. His last story for Tennis Week was “Next?
‘Brat Pack’ Might Struggle at Roland Garros” in the May 6 issue.
This interview appears in Tennis Week's annual agents issue. For more information
on players and their agents, please see the latest edition of Tennis Week.
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