America's Interest in the Beautiful Game (2) [NFTW #46]

June 12, 2023

What’s good everyone? I hope we’re all doing well. This week I double back on America’s interest in the beautiful game. After the colossal news that Lionel Messi has decided to sign with Inter Miami—I wanted to spend some time looking at how this plays in well with the growing popularity of football amongst both American investors and sports viewers. However, to really understand the magnitude of this transfer we have to go a few years back and follow another legend’s entry into football (soccer—just making sure) in America. David Beckham.

Miami Gets Messi

I was speaking with a friend today and we were doing a post-mortem on the Messi-Inter Miami deal. I wanted to spend some time looking at how this plays in well with the growing popularity of football amongst both American investors and sports viewers. However, to really understand the magnitude of this transfer we have to go a few years back and follow another legend’s entry into football (soccer—just making sure) in America.

In 2007, when David Beckham joined the MLS, he signed a contract with the LA Galaxy that included an option to purchase an expansion team at a discounted rate of $25 million. This ownership opportunity was a part of his vision to develop the sport of soccer in the United States. Over the years, Beckham explored various potential locations for his MLS team, with Miami being a particular focus. In February 2014, Beckham exercised his option to purchase an MLS franchise and set his sights on Miami as the home for his team.

In 2018, Beckham's ownership group, known as Miami Beckham United, reached an agreement with MLS to officially grant them the expansion franchise rights. This paved the way for the creation of Inter Miami CF. Upon hearing this news, Messi filmed a video congratulating Beckham for the achievement and told him that he would be expecting a call from him in a few years.

As for the financial aspect, Beckham's group had to secure additional investors to meet the league's requirements. Beckham himself invested a substantial amount, estimated to be around $25 million, but he also brought in other partners to help fund the team's operations and infrastructure. The ownership group for Inter Miami CF consists of several prominent individuals, including Beckham's business partner Simon Fuller, Marcelo Claure (CEO of SoftBank Group International), Jorge and Jose Mas (Miami-based construction magnates), and Masayoshi Son (CEO of SoftBank Group). Together, this group of investors pooled their resources and expertise to finance the team's expansion fee, stadium construction, player acquisitions, and other operational expenses.

Maybe in a Few Years, You Can Give Me a Ring” – Lionel Messi Issued a Come-Get-Me-Plea to David Beckham, 5 Years Before Inter Miami Transfer - EssentiallySports

In 2023, MLS has 29 teams—including newcomers St Louis City SC. A 30th team is on the way in San Diego. That supercharged growth is largely thanks to Beckham. Speaking to the New York Times in November 2007, MLS commissioner Don Garber said the following about the impact David Beckham had on the MLS:

“Without doubt, MLS has more global awareness than at any other time in our history and has more legitimacy in the United States because of David. Every measure of our business has grown because of him. We have sold more than 300,000 Beckham Los Angeles Galaxy jerseys, which was 700 times the number of Galaxy jerseys sold in 2006. Merchandise sales overall have gone up two or three times. International TV sales have gone up from next to nothing to distribution in 100 countries, with live games in Asia and Mexico.”

On the 7th June 2023, news broke out that Lionel Messi had decided to join American side Inter Miami after his exit from French champions Paris St-Germain. The Miami deal will include collaboration from brands like Adidas and Apple—in which Messi will be provided respective revenue shares. There are also discussions that Messi may be provided with a purchase option for part of an MLS team once he retires.

Messi, similarly to Beckham, is a marketers’ dream. Not only could he significantly alter the brand equity of both Inter Miami and MLS, but it is clear he his likely to boost his personal interests also. With both the World Cup (2026) and the Olympics (2028) set to take place in the USA this decade this will provide an even greater impetus to the beautiful game. The group that put together North America’s 2026 World Cup hosting bid projects the newly expanded, 48-team event will make $14 billion in revenue for FIFA—a substantial increase on the $235 million in revenue generated by the last World Cup hosted in the US in 1994.

2023 marked the beginning of what the league is billing as a groundbreaking 10-year broadcast agreement with Apple. Every one of the league’s matches is broadcast on MLS Season Pass, a streaming service contained within Apple TV+. As part of his contract Messi will receive a revenue share generated from these games. Messi alone will no doubt get a sizeable amount of new subscribers into the Apple TV ecosystem. By establishing a substantial presence in the U.S., Messi seems set to become an even greater focus for sponsorship dollars.

Good thing David remembered to call him.

Listens This Week:

Until next week. Peace.

If I was to get all the way to the bottom I would personally share NFTW with a friend who would find it interesting. I think you should do also!