International tennis championship Wimbledon 2013 kicks off Monday, June 24, and is sure to have heads of sports fans everywhere whipping back and forth to see who will be the new Wimbledon champions.
In addition to a championship title, the Wimbledon winners will also receive fame, acclaim, endorsement opportunities — and huge savings opportunities with their share of the Wimbledon prize money, which totals a staggering 40 percent higher than last year’s winnings.
According to Wimbledon.com, Wimbledon will dole out £22,560,000 in prize money (equal to about $34.8 million), a £6.5 million ($10 million) increase over 2012’s total winnings (£16,060,000, or $25.1 million using July 2012 conversion rates, according to Currency.me.uk).
How Much Wimbledon Champs Serena Williams & Roger Federer Won in 2012
There are more riches to be claimed by Wimbledon champions this year — but what about those who won in 2012? Roger Federer and Serena Williams were the respective Gentlemen’s and Ladies’ Single Wimbledon Champions in 2012, the category that carried the biggest winnings.
Here is how their winnings broke down, after the 50% tax that applies to earnings for international athletes who compete in Britain, as reported by the BBC.
- £1,150,000 for winning Ladies’ Singles
- £130,000 for winning Ladies’ Doubles with sister Venus Williams (half of the £260,000 prize for the pair)
- Total: £1,280,000
- After taxes: £640,000 ($998,528 in July 2012 conversion rates)
- £1,150,000 for winning Gentlemen’s Singles
- After taxes: £575,000 ($897,115 in July 2012 conversion rates)
How Much Interest Would the Winners Have Earned on Wimbledon Prize Money?
We take a look at what singles champions Serena Williams and Roger Federer won last year, and which deposit product or investment choice would have given them the best ROI in the past year.
Admittedly, low savings rates today are not earning depositors a whole lot of interest on their savings accounts. Still, even a tiny annual percentage yield is better than nothing — especially with an initial balance in the six or seven figures!
Here is what each Wimbledon champion would have earned in savings account interest over the course of a year, comparing the best, “competitive” and average savings rates recorded in the GoBankingRates rates database for July 2012.
|Best Savings Rate||Competitive Savings Rate||Average Savings Rate|
|Serena Williams||Interest Earned*||$16,094.13||$7,514.76||$2,299.04|
|Initial Balance: $998,528||Final Savings Balance||$1,014,622.13||$1,006,042.76||$1,000,827.04|
|Roger Federer||Interest Earned*||$14,459.57||$6,751.54||$2,065.54|
|Initial Balance: $897,115||Final Savings Balance||$911,574.57||$903,866.54||$899,180.54|
1-Year Certificate of Deposit
Of course, if all the Wimbledon Champions planned to do with their winnings was put it on deposit and leave it, untouched, to earn interest all year — why not consider a certificate of deposit? A one-year CD will offer higher interest rates than a savings account, and though it will decrease the liquidity, it wouldn’t matter much in this scenario, as they are putting the entire amount on deposit for a year anyway.
Below, we’ve calculated what Roger Federer and Serena Williams could have earned in interest on a 1-year CD, again comparing the best, competitive and average CD rates of July 2012, according to the GoBankingRates rates database.
|Best 1-Year CD Rate||Competitive 1-Year CD Rate||Average 1-year CD Rate|
|Serena Williams||Interest Earned||$19,970.56||$11,982.34||$5,192.35|
|Initial Deposit: $998,528||Final Amount||$1,018,498.56||$1,010,510.34||$1,003,720.35|
|Roger Federer||Interest Earned||$17,942.30||$10,765.38||$4,665.00|
|Initial Deposit: $897,115||Final Amount||$915,057.30||$907,880.38||$901,780.00|
Series I Savings Bond
Next we look at bonds. A Series I savings bond can be issued and left to mature for up to 30 years, but in this case we are looking to cash out after just 12 months.
For an I bond* issued between May and November of 2012, US News says, “If you purchase I bonds before November, you are guaranteed an effective 1.56 percent APY if bonds are redeemed after 12 months (penalty already accounted for).”
Here’s what that rate would look like for our Wimbledon Winners:
|Series I Savings Bond after 12 months|
|Serena Williams||Interest Earned||$15,577.04|
|Initial Deposit: $998,528||Final Amount||$1,014,105.04|
|Roger Federer||Interest Earned||$13,994.99|
|Initial Deposit: $897,115||Final Amount||$911,109.99|
*Please note that one can only buy up to $10,000 Savings I Bonds per social security number — but this hypothetical gives a fair comparison of bonds against other interest-earning products.
Hot Stock: Amer Sports Oyj (AMEAS:FH)
Amer Sports Oyj is the parent Company of popular sports company Wilson Sporting Goods, which manufactures the tennis equipment used by both of last year’s Wimbledon Champions. If Serena Williams and Roger Federer had bought the stock in July 2012 with their winnings, how would they have faired?
Amer Sports Oyj stock is traded in euros, so first we’ll need to change the amount of their winnings for British pounds using the exchange rates of July 2012:
- Serena Williams: £640,000 = €815,488
- Roger Federer: £575,000 = €732,665
Amer Sports Oyj sold for €8.89/share on July 9, 2012. Since that time, the stock has risen more than 50 percent in value. Using a current stock value of €13.68 (from Bloomberg, as of June 20, 2012), here’s what Serena Williams and Roger Federer would have made had they invested in this stock a year ago and sold it today.
|Serena Williams||Roger Federer|
|Initial Investment||€ 815,488||€ 732,665|
|Amount of Shares Bought||91,730||82,414|
|Today’s Value of Shares||€ 1,254,866.40||€ 1,127,423.52|
|Total Gains||€ 439,378.40||€ 394,758.52|
Serena Williams would have made out with € 1,254,866.40 (about $1,649,000), and Roger Federer would have been close behind with € 1,127,423.52 (about $1,480,000).