Background: On is the Swiss sneaker brand founded in 2010 by a former professional triathlete who wanted a shoe that felt like "running on clouds." On really took off after Roger Federer became an investor and ambassador in 2019, even helping design the shoes and taking equity in the company.

What happened: On's revenue has grown more than 11 times since 2019, reaching over US$3.8 billion. Now, On has nabbed a deal with Kylian Mbappé, the World Cup's all-time top scorer. The deal includes both cash and equity. But Mbappé had been in partnership with Nike... so this deal means Nike has officially lost its star striker.

What else: This is On's first real push into football, a market Nike and Adidas have dominated for decades. But with Mbappé's 136 million Instagram followers, On is betting his popularity can help take the brand well beyond running.  

What's the key learning?

💡 The best endorsement deal isn't a paycheck anymore... it's being on the cap table. Some of the biggest celebrity and sports deals now combine cash with equity, giving talent a stake in the company they're representing.  

💡 So this deal means Mbappé now has a reason to want On to win (not just collect a big cheque). On saw this model work with Federer, who received a 3% stake after investing $50 million in 2019. That stake is now believed to be worth around $500 million (which is more than he made from 18 years with Nike).

💡 The right celebrity can open an entirely new market. Mbappé is taking On into the world of soccer. And with around 270 million players worldwide... that's a lot of potential feet for On to fit.