Why Kylian Mbappe Chose Ownership Over Cash…
When one of the world's highest-paid athletes turns down a larger guaranteed payment in favour of owning part of a business, it's worth paying attention.
Football superstar Kylian Mbappé recently ended his 20-year relationship with Nike and signed with Swiss sportswear company “On”. While the full details remain private, reports suggest a key part of the deal was equity ownership in the company rather than simply a bigger sponsorship cheque. Mbappé is already paid lots of money and now he has equity that might continue to pay him long after his footballing career does.
At first glance, this may seem like a story about elite sport. In reality, it highlights one of the most important concepts in investing: the difference between the ‘certainty’ of cash today or owning assets that can keep growing in value over time.
It's a topic that was recently discussed by our MD and James Bott on Sam's relaunched “Engaging People Pod” podcast. While not everyone has the opportunity to receive equity in a business, all investors face a similar choice with their money. Do they keep it in cash and earn interest, or do they own a share of the world's leading companies and participate in their future growth?
Why We Hold Cash
Given that investing has historically delivered higher returns than cash over the long term, clients sometimes ask why we hold cash at all.
The answer is simple. Cash and investments serve different purposes.
Cash provides security, flexibility and peace of mind. It helps cover short-term spending, emergency expenses and planned withdrawals. It can also prevent the need to sell investments during periods when markets are temporarily lower.
In many ways, cash acts as the foundation of a well-structured financial plan. It provides reassurance that money is available when it is needed most.
Why We Invest
The challenge is that cash is primarily designed to preserve value rather than grow wealth.
Even when savings accounts offer attractive interest rates, inflation means the cost of living tends to rise over time. As a result, money held entirely in cash can gradually lose purchasing power, which means it buys less in the future.
Investing is different because it provides ownership.
When you invest in a diversified portfolio, you become a part-owner of businesses around the world. These companies develop products, create services, innovate, generate profits and seek to increase their value over time.
As those businesses grow, investors have the opportunity to share in that success.
The story of Mbappé's decision reflects a principle that has driven wealth creation for generations. Ownership often creates more long-term value than accepting a fixed payment today.
The Importance of Balance
Successful financial planning is rarely about choosing between cash and investments.
Instead, it is about ensuring that each plays the right role.
Cash supports your short-term needs and provides financial resilience.
Investments help grow wealth, maintain purchasing power and support long-term objectives such as retirement, financial independence, helping family members and leaving a legacy.
This is why many of our clients retain sufficient cash reserves while investing the majority of their wealth for the future. The cash helps them sleep well at night. The investments help them pursue their goals.
Looking Beyond the Headlines
Markets will always experience periods of uncertainty, and short-term fluctuations are a normal part of investing.
However, history has shown that patient investors who remain diversified and focused on the long term have often been rewarded. While cash certainly has an important place, ownership of successful businesses has been one of the most powerful drivers of long-term wealth creation.
The lesson from the Mbappé story is not that everyone should take more risk. It's that ownership matters. By combining sensible cash reserves with long-term investment in global businesses, investors can benefit from both security today and opportunity tomorrow.