Patrick Mahomes Signs $10 million Endorsement Contract with Logan Paul and KSI’s Prime Hydration

Patrick Mahomes is no stranger to signing lucrative endorsement contracts. It’s estimated that he earned $20 million in endorsements in 2022 alone, thanks to deals with brands like Adidas, Oakley, and State Farm, according to Forbes. 

In 2021 Trevor Lawrence signed a multi-year deal with Gatorade at an estimated $2 million per year, according to Front Office Sports. Lawrence was the first quarterback signed by Gatorade since Cam Newton in 2012. 

We can estimate that if Trevor Lawrence was paid $2 million per year by Gatorade in 2021, Prime is certainly paying a premium for one of the best players in the league. This also gives them the stamp of legitimacy in the United States with a slightly older demographic than they typically cater to. This could be an interesting deal structure that includes some profit sharing in addition to a guarantee.

Prime is making a huge push for market share and they seem to be executing perfectly by nabbing top athletes like Patrick Mahomes and being the official hydration drink of the UFC, Bayern Munich, Barcelona, and Arsenal. 

They’ve already grown to a run-rate of $1.44 billion in revenue (up from $1.2 billion that was quoted by Logan just a couple months ago). And that figure is revenue, not retail sales. I estimate their retail sales figure to be around $3.27 billion annualized. 

BodyArmous was acquired in 2021 by Coca-Cola for a 4.7x multiple on retail sales. Of course Prime’s explosive growth commands a higher multiple but even at a 5x multiple on retail sales, Prime is worth around $16 billion, making Logan Paul and KSI multi-billionaires just 2 years after launching the product.