Four-time Grand Slam Tennis Champion Naomi Osaka is growing her business off the court. The tennis star launched her own skincare brand KINLÒ in 2021, going on to co-found her own production company, Hana Kuma, and female athletic-centric talent agency, EVOLVE, alongside Stuart Duguid over the past year.
Osaka and Duguid joined Yahoo Finance's Alexandra Canal for the Yahoo Finance Invest event to discuss her new business ventures and her tennis career. "I'm always really curious about new paths. I've always gotten really good opportunities through being a tennis player and I've always felt like it would be great to expand on that. My career as an athlete isn't as long as I would want it to be. So it's good just to explore different avenues." Osaka explained.
On her return to the pro tennis circuit, Osaka said "I've just missed the competition. I'm a very competitive person. It's been so cool to see so many players doing really well and so many new faces. I wish to accomplish a lot when I get back on court. I hope I do well on grass and clay next year."
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Key video moments:
00:00:35 - What makes Osaka's business ventures different
00:03:13 - Osaka's biggest challenges as an entrepreneur
00:05:41 - Mental health in sports
00:07:41 - Osaka's return to pro tennis circuit
Video Transcript
ALEXANDRA CANAL: Four-time Grand Slam champion Naomi Osaka is known for her moves on the tennis court, but the 26-year-old athlete is also a budding entrepreneur, a new mom, and a fierce mental health advocate. Osaka will make her triumphant return to the game next year. She joins us now along with her business partner Stuart Duguid, who serves as the co-founder of talent agency EVOLVE and multimedia company Hana Kuma. Thank you both so much for being here.
And Naomi, I want to start with you. You've been able to cultivate such a unique career path. We mentioned Hana Kuma, EVOLVE. You also have a skincare line KINLO. So a lot of different businesses, but also core to who you are. So I'm curious what made you want to expand your influence beyond the tennis court and really embrace this role as business woman?
NAOMI OSAKA: I would say, for me, I'm always really curious about new paths. And I don't know, I've always gotten really good opportunities through being a tennis player. And I've always felt like it would be great to expand on that. And I know, like, my career as an athlete isn't as long as I would want it to be. So it's good just to explore different avenues. And also everything that we've created is things that I'm very, very into and excited about. So it's all coming from an organic place.
ALEXANDRA CANAL: And you've been able to develop your career on your own terms. So in what ways are these businesses like EVOLVE, for example, an extension of who you are, especially as a woman and a minority? What makes these businesses different than what's out there already?
NAOMI OSAKA: I mean, I think, for me, we've always been really lucky because I've always tried to come from a place of, like, whether it's my culture, like, being half-Japanese and half-Haitian and growing up in America. I feel like, you know Hana Kuma on that sense. It kind of sees things from my lens. So we've been really fortunate to have kind of guidance from Mav and Lebron and kind of see their input on things. And I don't know. I think it's been really important in kind of navigating through that world.
ALEXANDRA CANAL: And with navigating through that world, Stuart, I want to bring you into this conversation. What's been your advice to Naomi on how to navigate this business world and also balance it with tennis?
STUART DUGUID: Yeah, well, thanks for having us. It's great to be here.
You know, it's a good question. I tend not to actually dispense that much advice. Naomi, it's more-- she comes up with interesting and creative ideas, and I kind of see it as my job to help bring them to life, and maybe tell her the ones that are a no-goes. But for the most part, I'd say she drives more of the creative and the ideas.
ALEXANDRA CANAL: Yeah, and I'm curious to get your perspective as an agent. Are you seeing younger athletes wanting to launch their own businesses and expand beyond the sport that they play more so today than let's say a decade ago? And if so, why do you think that's the case?
STUART DUGUID: Yeah, definitely. I think it's twofold on one hand I think athletes are much more interested in taking portion of their deals in equity and starting businesses. And I think that's just come with athletes, having more access to financial information and better advice.
And I think that they've seen that-- you know, if you're going to spend a year, or two years giving yourself to a brand and helping it grow, you want to participate in some of the upside that's not just cash. So we've seen a real change in the guard, I've seen a lot more of that recently.
I would still say it feels a little bit top heavy, so I think the top tier of athletes are really getting presented with great opportunities and really able to grow their brands. But beneath that, it's kind of hard to break through. A lot of these deals tend to be with startups or younger companies, which can be very hit or miss obviously by nature of what they are.
But the higher tier athletes are able to kind of align themselves. Both to start up companies that they believe in, but also companies that are on the rise, and perhaps pre-IPO or close to that kind of stage. So yeah, there's definitely a rise across the spectrum. And for an athlete like Naomi, it's been a great space to enter.
ALEXANDRA CANAL: Absolutely. And so Naomi, you have been able to break through, what's been the biggest challenge for you as an entrepreneur? And in what ways is it similar or different from your life as an athlete?
NAOMI OSAKA: Oh, I think I would say the ways that it's different is because I've been playing tennis since I was a really young kid, so it's kind of like breathing air to me, there's nothing new about it. Well, I mean, there are some new things about it. But every time I step on the court, it's like a very relaxing feeling.
But I would say like with business and everything like that, I feel like a child, like, I'm learning new things every day and it's very challenging. And I feel very lucky because I'm surrounded by people that know quite a lot, and they're able to guide me and give me really good information.
ALEXANDRA CANAL: So you said you're learning new things every day. What's something that sticks out that you've learned through this experience?
NAOMI OSAKA: I would say I don't remember who gave it this advice to me. It might have been Math. But basically-- and I'm putting his quote very short, but his basically like everything's not going to stick. So like every everything that you try to do isn't going to be perfect, but I don't know-- you just have to keep believing in your ideas.
ALEXANDRA CANAL: And that relates to the discourse surrounding mental health, which you've been very passionate about, especially mental health for athletes. Have you seen athletes have more resources when it comes to mental health? Has there been more of a discourse as of late?
NAOMI OSAKA: I think definitely there has been. I know a couple of years ago, it didn't really exist at all, so I'm really glad like tournaments are stepping up, organizations are stepping up, and it's becoming a bit more of a comfortable topic to talk about. Because I know with athletes, sometimes you can see it as a weakness. But I'm really glad that it's becoming a bit more open.
ALEXANDRA CANAL: And what do you think been the biggest change as of late that you've noticed?
NAOMI OSAKA: Honestly, I think just more people are talking about it, so I feel like the people that didn't feel as comfortable or the people that didn't really think that it was OK to talk about mental health are now talking about it and seeing that it's acceptable too.
ALEXANDRA CANAL: And Stuart, how do you think the conversation surrounding mental health for athletes has evolved over time?
STUART DUGUID: Yeah, I mean, considerably and I think Naomi's being modest and humble, but I think she deserves an enormous amount of credit for bringing that topic to the forefront. I think since Naomi spoke openly about the topic, we've seen real athletes at the top of their game, from like Simone Biles, other examples, which are I think inspired by what Naomi did.
I'll never forget when we were coming back from the Olympics in Tokyo and we were walking from our check-in to our flight, and the amount of other athletes, probably mostly amateur athletes that approached Naomi and just said thank you for everything you've done, was like really moving and a great experience.
So yeah, I think she really deserves an enormous amount of credit. I think since then things were kind of slowly bubbling, and then a real trajectory it ramped up and it's much more commonplace to hear athletes discuss topics like that.
ALEXANDRA CANAL: And want to pick up on that point. Naomi, what have you learned since stepping away from tennis, when it comes to really maintaining that mental agility, especially as you plan to return to the game next year?
NAOMI OSAKA: I mean, for me I feel like I've learned to really be grateful. I think since I've been playing tennis since I was three, I never really saw my life without tennis. So I've learned to be very grateful for the sport, and just take things one day at a time because I'm the type of person that kind of-- I guess lets things stir up in my head and I don't really take time to breathe.
So just being grateful for every day, and taking it one step and one day at a time.
ALEXANDRA CANAL: And part of that one step at a time is going to lead you to 2024-- the Australian Open. What have you missed so far since stepping away from tennis? And what are you excited about when you think about your return?
NAOMI OSAKA: I think I've just missed the competition. I'm a very competitive person, so it's been really cool to see so many players doing really well, and so many like new faces. And I think what I wish to accomplish a lot when I get back on court, so hopefully I do well on grass and clay next year.
ALEXANDRA CANAL: And Stuart, I want to get your opinion on how you're excited for Naomi entering this next stage?
STUART DUGUID: Yeah, I mean, I'm really excited for her because I can sense her enthusiasm, which is just awesome. On the WTA tour, we've seen quite a lot of mothers come back to tennis in the last six to 12 months and really fair pretty well. So I think it'll be really interesting to see how Naomi gets on.
And I think the WTA is in a great situation on the court, they're having some real struggles off the court actually right now. But on the court, I think there's some really interesting tennis players from diverse backgrounds. You've got Coco, there's a player from China called Zheng, Naomi obviously, Sabalenka is the number one player who's European-Belarusian.
So I think there's so many different potential stars from different countries that I think that tour can really elevate and go to the next level. And I think it'll be amazing to see not only in the mix with all these great rivalries. So yeah, I'm very excited for the tennis fan but I'm also really excited for Naomi herself because I can sense how much she's missed it, and yeah, her enthusiasm to come back strong.
ALEXANDRA CANAL: Naomi, is there anyone you're looking forward to potentially playing or competing against?
NAOMI OSAKA: Honestly, there is someone I miss, but she stopped playing. But she's the person I consider my rival, Barty. She's Australian. So I'm hoping maybe she comes back too.
ALEXANDRA CANAL: OK, well there's definitely a lot to look forward to. And you're a new mom, I mean, how do you think that's going to change the way you approach the game? And also, the mental side of things too, because it's different when you welcome a child into the world.
NAOMI OSAKA: Yeah, definitely. Honestly, I feel a difference already. I used to kind of be able to afford-- I guess not lazing around, but every practice means a lot to me now because I feel like every minute is important. And I think like carrying that on into my matches is going to be something that is a new experience for me because I did sometimes used to waste a lot of time, but I don't know. I guess I'll answer your question when I get there.
ALEXANDRA CANAL: I'm excited about that. And I noticed in some other interviews, you've talked about this imposter syndrome of not being a good enough mother. And I'm sure you've gone through different points of your career where you felt that as well. What's your advice on tackling imposter syndrome? Because I think that's something that everyone can relate to at some point in their life.
NAOMI OSAKA: Yeah, I mean, I'm not sure if I'm the person that should be answering this question, but I don't know. You just have to work through it on your own. I don't feel like my answer is going to be able to help someone else in their specific situation.
But I think it really is taking it one day at a time. And knowing that-- if we're talking about specifically motherhood, knowing that you know your baby loves you and you know you love your baby too, and you're just getting through it together. And it's really a journey, and it's not going to be easy, but it's something that you're going to look back and you're going to be really fond of those memories. That's what I feel.
ALEXANDRA CANAL: And I want to bring the conversation back to entrepreneurship business. This is a question for both of you. But what do you need to sign on to a project to start a certain business? To commit to a sponsorship deal? What has to be there to get you excited? And Naomi, we can start with you.
NAOMI OSAKA: Honestly, most of the times with deals or brands, I've actually been the one to ask Stuart, hey, I really love this brand, can we do something with them? So for me it really starts with some something organic, like I really have to truly love them or want to do something with them. Because I feel if you're like a person with influence, you can't go around pushing stuff that you actually don't believe in or you actually don't use.
ALEXANDRA CANAL: And Stuart, how about you, especially as an agent, when you're looking for these sponsorship deals for athletes? Or even for yourself deciding what businesses and projects to align your own self with?
STUART DUGUID: Yeah, I think Naomi said it quite well, especially in terms of consumer products. We really start with products that she either uses or is curious to use or likes, something like Sweetgreen would be a great example, where I think Naomi came to me and just said, hey, I'm having these salads four times a week.
So we called Sweetgreen initially just to see if we could get a card for some free salads. And one thing led to another, and then we ended up with a great partnership with them. And of course, they launched their IPO a couple of years ago, which was very successful at the time. And those guys became great friends, the founders.
So yeah, I think it's a combination of products that Naomi either uses or believes in. And then we like to align with companies that share the same values and ethos.
And another thing which is important to Naomi which I always respect is she likes to have a direct line to the decision makers at these companies-- to the CEOs, to the presidents, if that's Phil knight at Nike or the founders of Sweetgreen. I think it's important to her to have a direct line to the top, which I think, if you're an athlete and you're responsible for endorsing a brand and getting behind the brand, I think it is important to be able to have those lines of communication.
So yeah, there's a few factors that we always consider. And I think for the most part, the portfolio that Naomi's built really reflects those values.
ALEXANDRA CANAL: Well, I love me some Sweetgreen, so I can totally get behind that one. But Naomi Osaka, Stuart Duguid, thank you both so much for being here. Really appreciate you guys taking the time.
NAOMI OSAKA: Thank you.
STUART DUGUID: Thank you. Thanks for having us.
