Slam dunker for Stosur
PUBLISHED : 15 Sep 2011 12:56:00 | Andrew heathcote
Nine sportspeople make the 2011 Young Rich list, but Samantha Stosur isn’t one of them. That our latest grand slam champion will miss out on the 2011 list might surprise some people. Much has been made of the $US1.8 million ($1.73 million) pay cheque she recently received in New York. Although she’s rich, she’s not rich enough.
Why won’t Stosur ever make it? Here’s a few hard truths:
1) She’s 27: Something of a late bloomer, Stosur is only just realising her potential. Better late than never, as they say, but by not hitting top form until now, she has only a few short years left to capitalise on being one of the world’s best tennis players. Lleyton Hewitt (worth $40 million last year) was a gun at the age of 15.
2) Limited sponsorship appeal: Stosur has a solid band of sponsors (including sunglasses company Oakley and local airline JetStar). Although she’s in a better position to negotiate with sponsors now than she was two weeks ago, she doesn’t hold the same appeal for international sponsors as glamour girls like Maria Sharapova. Sad but true.
3) Rising cut-off: In 2009, the cut-off for making the Young Rich was $15 million. Last year, it was $19 million. The global economy may be in a mess but don’t be surprised if the cut-off keeps rising.
4) The US dollar: Stosur is unlikely to complain about her $US1.8 million cheque but well she might. The same amount was worth a lot more in Australian dollar terms a few years ago than it is now. The rising dollar strongly favours those who make their money at home.
5) Players are good at playing, not investing: Most sports stars are happy to take the advice of their highly-paid managers and put their money in low risk/low return ventures. And perhaps those that don’t follow this recommendation should. Motocross rider Chad Reed ($35 million net worth last year) has put a decent portion of his money into starting his own professional team. By his own admission, this is more a labour of love than a level-headed way of boosting his bank balance.
Stay tuned for more details, the full BRW Young Rich is on sale now.
BRW
Andrew Heathcote
Rich lists editorMelbourne
Andrew Heathcote began his career as a reporter at Fairfax in 2001. He has since gained considerable experience in business journalism and has tackled several key rounds including the energy and financial services sectors. Andrew has also worked for market-leaders in the commercial sector in the financial and professional services industries.
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