Goallasso! Brand Activations Just Got Messi-er

In an unprecedented move that has sent seismic waves through the world of soccer, Lionel Messi has inked a deal with Major League Soccer’s Inter Miami, shunning a colossal $1.6 billion offer from the Saudi league. His $54M per year contract makes him (by far) the highest-paid player in the league -- surpassing that of Xherdan Shaqiri, who currently earns the most in the league at $8.1M. His contract allows him to receive a revenue share from new MLS Season Pass subscribers on Apple TV+ as well as a percentage of all team shirts sold by Adidas. And he will have equity in the team he plays for.

With Copa America and World Cup competitions coming to the USA, the greatest active soccer player now has a big stake in the success of soccer in America. And this groundbreaking development has reshaped the landscape of sports marketing, advertising and brand activations.

Messi’s record contract doesn’t just make him the highest-paid player in the MLS; it presents a unique, once-in-a-lifetime opportunity for brands worldwide. His alignment with the league promises to redefine the way brands engage with soccer in the United States, potentially setting new standards for sports marketing and sponsorship. Brands have already begun capitalizing on Messi's transition.

Apple

Apple’s biggest announcement last month may not have been about the AR goggles. It also announced an epic $2.5 billion investment in securing exclusive rights to stream Major League Soccer (MLS) games over the next 10 years. Apple TV Plus subscribers will have access to a broad selection of MLS and Leagues Cup matches, with a limited number of matches available for free. Full-season ticket holders will also receive access to the streaming service. Notably, there will be no local blackouts or restrictions, offering widespread coverage for MLS games.

This represents a significant bet on the growing popularity of soccer in the US, amplified by Lionel Messi's recent move to Inter Miami. Tying their brand to Messi's extensive global appeal, Apple anticipates significant growth in new MLS Season Pass subscribers and expects a substantial return on investment.

Let's make some extrapolations using the available data. Messi's colossal global following, reflected in his 470 million Instagram followers, makes him a powerful attractor for new subscribers to Apple TV+. The cost of an annual MLS Season Pass on Apple TV+ is $49.99. As of March 2022, Apple TV+ reportedly had around 25 million subscribers. Even a conservative estimate, say a 5% increase in subscribers directly attributed to Messi's signing, would represent an additional 1.25 million subscribers. If all of these were to purchase an annual MLS Season Pass, this would equate to an additional $62 million in revenue in the first year alone.

And this is Messi we are talking about. The greatest (no argument from me) player on the planet. So it's likely that the Messi effect could lead to an increase in subscribers beyond this 5%. Moreover, $62 million doesn't account for the monthly subscribers ($19.99/month) or the increased viewership and advertising revenue Apple might generate from the heightened interest in the MLS matches.

Additionally, there's the added value of brand association. Having Messi linked to Apple TV+ boosts the platform's prestige and visibility, which may translate into benefits across Apple’s wider ecosystem, as subscribers drawn in by Messi may purchase other Apple products or services. The Messi Effect could prove a massive boon for Apple, as the company's TV contract with MLS is a global deal. Therefore, fans around the world, not just in the US, would be able to follow Messi's MLS career with a subscription.

With added eyeballs come added expectations. Apple will need to activate this partnership in innovative and immersive ways. From live events to digital products, the size, scale and creativity of the activations that are borne of the media largesse is truly exciting to consider.

Adidas

Messi has held a lifetime deal with the Three Stripes since 2017 and the sports giant has been the sponsor of the MLS since its inception in 1996. With Messi in the MLS, the brand now stands to experience a considerable surge in kit sales. Given that Adidas is also an MLS partner and provides kits to all 29 teams, including Inter Miami, Messi's transfer stands to boost their sales considerably.

If you are a global soccer fan, it is not uncommon to see millions of shirts to be sold when a high-profile player signs for a new club. Even if we assume that only 1% of Messi's Instagram followers (4.7 million people) buy an Adidas Inter Miami jersey at an average price of $90, this equates to over $420 million in revenue.

However, the true financial benefit to Adidas likely far surpasses the revenue from shirt sales alone. The brand visibility and association with Messi, one of the world's most recognized athletes, can significantly increase Adidas' overall sales in the United States. The American sports apparel market is valued at over $100 billion, and even a minor shift in market share due to Messi's influence can represent billions in revenue. The "Messi effect" could enhance the perceived quality of Adidas' products, increasing the brand's equity and providing a platform for further market penetration and expansion. This is a timely development for the brand as it recovers from its association with Kanye West and their Yeezy collaboration.

MLS

Perhaps the biggest winner in the transfer saga, the MLS is celebrating a milestone moment in the arrival of Lionel Messi. The Messi Effect will undoubtedly raise the league's sponsorship revenue as well as its global profile, making it a more attractive property for both existing and prospective sponsors.

For current sponsors, the enhanced visibility and increased audience engagement that Messi brings can justify higher sponsorship fees when contracts are renewed. This is particularly the case for globally recognized brands that are looking to tap into Messi's massive international following.

Moreover, Messi's transfer can also attract new sponsors who want to associate their brands with one of the world's most popular athletes. This could open up opportunities for high-value partnerships with companies from industries that traditionally don't invest heavily in soccer, such as technology, automotive, and luxury goods. It can also attract more international sponsors, given Messi's strong global appeal.

The increase in sponsorship revenue is not limited to the league alone. Individual clubs can also expect to see a surge in interest from sponsors, given the increased media attention and fan engagement Messi's presence will generate. This is particularly true for Inter Miami, Messi's new club – real estate prices in Miami and South Beach jumped after the announcement.

With added sponsorship dollars flooding into the MLS ecosystem, brands would be wise to use this opportunity to innovate the soccer experience in the US. From AR watch parties to purpose-led community growth to digitized tokenization of loyalty programs, brands stand to be pioneers in a new era of US soccer. This is no time to settle on creativity, on panache, on fearlessness in the way brands create experiences -- just like the maestro himself.

The Messi Effect for Brands

Just how popular is Lionel Messi in the US? Three-tenths of soccer followers in the US – defined as those who watch or follow soccer on an active basis – pick Messi as one of their favorite soccer players (30%). This makes the Argentine World Cup winner the most popular soccer personality among fans in the US, with a lead over fellow GOAT contender Cristiano Ronaldo (26%).

The 'Messi Effect' has already shown its potential to revolutionize brand activation. Inter Miami’s Instagram profile experienced an influx of 1.3 million followers within four hours of Messi's announcement, swiftly increasing to 6.2 million, making it the most followed major US pro franchise. This social media explosion underscores how Messi’s global appeal can be harnessed by brands for visibility and reach.

Inter Miami has already seen massive growth in social media footprint since the news came out and ticket prices on the secondary market have skyrocketed for games that feature the famous footballer. The New York Red Bulls will host Miami on Aug. 26, and the cheapest ticket to get into the game was listed on SeatGeek at $438 at one point on Wednesday. The ticket-selling site TickPick reported that the cheapest ticket they sold for the game before the news was $30 and that prices ballooned to $401 after. And as ticket prices to an experience rise, so do the expectations of the people who buy them.

As the world's greatest active soccer player takes the stage, brands can leverage the attention to connect with American soccer fans and expand their consumer base, riding the wave of the 'Messi Effect' to update and up-level their sports marketing, advertising, and sponsorship approaches.

For instance, Audi’s sponsorship of MLS includes the "Audi Player Index," an innovative player-tracking technology that provides insights into the game, offering fans a deeper level of engagement. Imagine the influx of globally-engaged audiences to this platform who want to track Messi at every game he plays.

Heineken used to promote the "Heineken Rivalry Week" with the MLS, focusing on the league's fiercest rivalries between cities to drive promotional activities in each market. With Messi coming to every MLS city, every week becomes rivalry week at local bars, stadiums and grocery shelves.

MLS teamed up with the popular video game Fortnite so that game players could purchase outfits of their favorite MLS teams. Guess which jerseys are going to sell the most in Fortnite? AT&T is sponsoring the MLS All-Star Skills Challenge this year. Imagine if the greatest player in the world shows up to that!

You get my point.

The Messi Effect is bound to elevate everyone’s game in the MLS – from players and staff, sponsors, broadcasters, media owners, stadium operators, communities, fans and brands alike.

His arrival in the US just ahead of the Copa America and World Cup tournaments offers brands a golden opportunity. Brands associated with Messi and the league, like Apple TV+ and Adidas, are poised for significant market gains, which should prompt other brands to reassess their advertising strategies and consider sponsoring the MLS or supporting soccer in the US in general.

There will be more fans. More brands. More global attention and local fandom. As soccer continues to gain popularity in the US, brands now have an activation platform to connect with diverse, global and passionate audiences to (hopefully) Cruyff-turn their sports marketing approaches.