Durban - Striking gold and breaking a world record at the Olympics is the stuff that dreams - and maybe bulging bank balances - are made of.
And now that South Africa’s new golden hero, Wayde van Niekerk, has done both, “he will be in the money”, the predictions go.
Although no financial details of Van Niekerk’s current sponsorships have been released, it is likely that the world record holder and the marketing team around him will be able to negotiate annual deals totalling almost R5m, a sports management expert has said.
And that depends on various factors, including Van Niekerk “coming out of his shell”.
The 24-year-old Van Niekerk, who scooped South Africa’s first gold medal at the Rio Olympics, made it into the sporting history books on Sunday when he slashed 0.15s off the 17-year-old world record that had been set by the legendary Michael Johnson, crossing the finishing line in the 400m track event to notch up an impressive 43.03 finish.
Praise and congratulations are being heaped on South Africa’s new sensational sporting superstar - and it will not be long before the financial rewards follow.
As it is, the individual South African Olympian winners can each expect to receive R500 000 for taking gold (R100 000 of that will go to their coaches), while the silver medallists will receive R200 000 (with R50 000 earmarked for the coaches) and the bronze medallists will receive R80 000 (with R20 000 for the coaches).
The SA Sports Confederation and Olympic Committee (Sascoc) unveiled its financial incentives last month, following a late cash injection from Telkom, with the main contributions from the Lotto.
But in addition to that, “sponsors will now go after” Van Niekerk, said Greg Tregoning, the principal of the Vega School of Brand Leadership in Durban.
“And if he already has sponsorship, it will make him even more valuable,” Tregoning added.
Van Niekerk is already sponsored by Adidas.
He was presented with two Mercedes-Benz cars at last year’s SA Sports Awards when he was named the sports star of the year.
He gave the cars to his parents, but said in the current issue of Sascoc’s Road to Rio magazine that he shares the one that his mother, Odessa, has.
“He is a hot brand. He has a lot of potential and he will be in the money,” Tregoning predicted.
Dr Michael Goldman, assistant professor of the sport management programme at the University of San Francisco and also an adjunct faculty at the Gordon Institute of Business Science (Gibs) at the University of Pretoria, and editor-in-chief of the Emerging Markets Case Studies, says that while Van Niekerk is likely to get a few more South African sponsors, “his commercial potential will be based on his ability to continue to compete and win in high-profile international races, as well as his ability to communicate his story in a compelling way in public”.
Goldman believes Van Niekerk’s title will fade as people return to their lives after the Olympics, and will possibly only pick up again as the world heads towards the next summer Olympics.
The talk of a possible race between Van Niekerk and Usain Bolt would be a great marketing platform.
“Wayde has been soft-spoken in his interviews thus far, although he comes across very authentically,” Goldman said, adding that the athlete’s marketing people would likely encourage him to come out of his shell and engage more confidently with public audiences, to take advantage of possible leverage opportunities for his current and potential sponsors.
His ability to deliver on sponsor expectations at events and appearances will be the key and will also open up fee-based inspirational conference speaking opportunities that can be lucrative.
While Van Niekerk and his marketing team could negotiate R5m deals, “two or three deals that may get to R1m a year will depend on Wayde’s image and name becoming much more well known and loved in the target markets most appealing to sponsoring brands”, Goldman said.
The Minister of Sport and Recreation, Fikile Mbalula, who returns from Rio today, said Van Niekerk’s historic win was a “proud moment” for the South African team.
Twitter was awash with comments in the wake of Van Niekerk’s win, with one coming from Michael Johnson himself, who wrote: “Congratulations to you and your coach! Well done and deserved. Olympic gold and world record. I know the feeling!”
Golfer Gary Player tweeted: “What a run! what a man! Congrats,” while cricketer Hashim Amla said: “Many congrats bro...Representing the immense potential of South Africa and its people.”
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