Since Lionel Messi's blockbuster move to Inter Miami CF this summer, soccer fans can't seem to talk about much else. In fact, for a time, no one could avoid the subject. The Argentine legend has defined the global game for close to two decades. Join us for an examination of his groundbreaking deal, superstar agreements that foreshadowed it, and what this development means going forward.
The basics
After setting the world on fire with Barcelona, where he first honed his craft, Lionel Messi spent two somewhat underwhelming seasons with French powerhouse Paris Saint-Germain. Upon departing PSG, many believed a return to Camp Nou was in the cards. Instead, Messi chose not to return to his boyhood club and see out his career. Moving on from the team that helped form his superstardom allowed him to move to the States and join up with David Beckham's fledgling MLS team, Inter Miami. The news began to trickle in come July that Messi was headed to America, transforming overnight the future of professional soccer in North America.
Reports soon emerged detailing the revolutionary deal that tore Lionel Messi away from his legacy at Barcelona as well as the fortunes that Saudi Arabian teams were offering him. The seven-time Ballon D'Or winner will have quasi-stakeholder rights throughout his time with Miami. He'll have a minority ownership option for the club, a watered-down version of David Beckham's deal for a discounted price for a new MLS club. He'll receive shares of league-wide broadcasting operations by Apple TV. He'll get a piece of sales by Adidas, the official equipment supplier of the league. Some have even reported that he'll earn a portion of ticket sales. The entire MLS, as well as its corporate partners, have promised a lot to attract the generational attacker, but Messi's arrival could mark a monumental shift in the sport's North American landscape. Values and revenues will soar. ESPN reported that ticket prices to Inter Miami matches have more than quintupled. The average attendance of the club is up by almost 35%. Perhaps the novelty will wear off a tad, but MLS will reap these rewards for the foreseeable future.
Not only will immense resources come flooding in due to his popularity, his commitment to MLS could show that America is a legitimate destination for world-class football. Some will undoubtedly claim that it's simply a cushy landing spot for Messi's twilight years. Indeed, some aging superstars made late stops in the United States, including Leo's new boss David Beckham. No right-minded soccer fan would argue that Inter Miami is getting Messi's best years, but he's certainly not over the hill. He's the current favorite to win the Ballon D'Or as the world's best player at the end of October. This development and the agreement that marshalled it, for both Messi and MLS, has no exact precedent. However, there are crumbs to find over the last few years in sports business.
What came before
In 2018, tennis wonder Roger Federer chose not to extend his endorsement deal with Nike. The two had become synonymous with one another. Tennis fans could hardly walk ten feet at a tournament without seeing the iconic "RF" logo. To move on from such an established partnership seemed a shock to ordinary followers of the sport, but five years on, Federer clearly made the right business decision. Not only did his deal with Uniqlo secure him a reported $300 million, but it also allowed him the freedom to explore shoe manufacturers. Federer is now a shareholder in the Swiss company On and has helped transform it into a worldwide player. Reports estimate the tennis legend's stake in the company would have increased tenfold since his involvement began. Of course, Federer has retired and his business venture with On is not based on competition, but his inroads as a businessman laid some groundwork for Messi, a similarly renowned athlete, to make his Miami move.
One couldn't overstate the impact that celebrities of the status of Federer and Messi have had on these brands. Their fame garnered instant attention for the apparel company and the MLS team. However, this is no mere marketing gimmick. The Swiss athlete aligned himself with a company in which he believed and saw potential. He leveraged his substantial platform and kickstarted their profile. Yes, it's Roger Federer and his stardust brings the eyeballs. If On shoes fell apart after three wears, though, or pinched customers' pinky toes, he would have looked like a frivolous rich dude that made an ill-advised business move. Take the viral story of Wrexham FC for another example. The Welsh club has enjoyed the exposure of their Hollywood owners, without a doubt. However, fancy kit deals and twitter followers don't guarantee success or a sustainable business model. Its new owners can connect with a passionate and dedicated fanbase that prides itself on a profound sense of history. American soccer fans hope that Lionel Messi saw the same substantive potential in Inter Miami and MLS.
The results
Federer's deal with On has paid off big time. The apparel company has grown at staggering rates, and will continue their trajectory having signed endorsement deals with Iga Światek, a four-time grand slam champion, and Ben Shelton, one of tennis' most exciting young talents. Wrexham has begun their ascent back up through the tiers of English football and grabbed the sport's attention with a cinderella run into the late rounds of the FA Cup last year. Messi's start with his new team took over the internet to a unique degree. MLS hopes to see a continued competitive boost after Inter Miami won the Leagues Cup in August. The league also hopes and expects to see its business and reputation transformed in the coming years.
It's difficult to imagine that this contract structure for salaried athletes won't catch on to some extent, given the potential value to both MLS and Lionel Messi. However, there aren't many athletes whose inclusion in a team or league would have the same consequence. Indeed, he and Roger Federer have a rare kind of prestige that stems from more than just their long lists of tangible accomplishments. For one thing, both men have incredible reputations for their sportsmanship. Federer would call his own ball out and always spoke highly of his rivals in the press. Messi embellished fouls far less than his counterparts in soccer and carried himself with humility on and off the field. Ask hundreds of millions of fans why they consider either of these athletes the GOAT, and they'll respond by referencing their grace, the way they float around the court or field, and their magic touch. There exists some inescapable magnetism in their particular brands of athleticism and success. It's hard to imagine many others having the same case for such lucrative agreements, but the sports world is eager to learn whether the industry's brightest minds can find a way to scale back similar contracts for non-generational superstars.
Comments