How Messi Made Inter Miami the Richest Club in MLS š° š
Plus Nike is set to divorce one of its biggest clients and why did Amazon just lose its Premier League games?
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Imagine hiring one employee that single handedly doubles your earningsā¦.
Inter Miami is set to earn $120 million this season. Thatās more than double the $50 million the club earned last season and slightly more than last yearās MLS champions, LAFC.Ā
This impressive financial turnaround can be traced to one manā¦Lionel Messi.Ā
This shouldnāt come as a surprise. Just look at some of the ways Messi has had an impact:
The Messi jersey became the highest selling of the season after just three months.Ā
Inter Miami average attendance rose from 15k to 20k per game across all competitions.Ā
Ticket prices went from $110 on average to upwards of $750 per game that involved Messi/Inter Miami.Ā
But the Messi effect hasnāt stopped there. Inter Miami plans to make the most of its new money (and goal) machine.Ā
The club estimates a total revenue of more than $200 million next year. This would make it the highest revenue generating football club in the Americas and one of the 25 richest teams in world football.Ā
Step one has been to raise the season ticket prices. The lowest value option has risen from $485 to $884. Some fans claim they are being quoted $30k+ for two premium seats. Despite this, the season tickets have sold out and Inter Miami has increased its member base by 25%.
Step two will be negotiating new sponsorship contracts. Several deals are set to expire at the end of the 2023 season. The club is in a far better negotiation position with Messi. Even the existing deals should get more lucrative, with clauses in those contracts stating that the value will rise if the club gains a greater social media following.
Before Messi, Inter Miami had less than 1 million Instagram followers. Now, the club has more than 15 million. Thatās more than any NFL, NHL or MLB team.Ā
The Messi effect is undeniable, and itās not just Inter Miami that is feeling it. Apple has become the broadcast partner for MLS and is already seeing its subscriber count soar. You can learn more about Appleās strategy with Messi in our recent video:
ā³ļø The sports world could be about to have one of its biggest ever divorces.Ā
According to the āNo Laying Upā golf podcast, which has a history of breaking big golf news, the decades-long Tiger Woods and Nike relationship is set to be over within the next few weeks.Ā
This iconic duo has been around since 1996. Nike was one of the only brands that stayed with Tiger Woods in 2009 when his extramarital affairs came to light. Woods has earned hundreds of millions from the brand and become synonymous with the presence of the swoosh in the golfing world.Ā
So, why break up?Ā
Like any break-up, there are always hints.Ā
Nike stopped making golf clubs in 2016, and Woods has used Taylor Made products ever since. This has made the relationship between Nike and Woods slightly more distant. Taylor Made is reportedly looking at an expanded apparel line and may have offered Woods a lucrative deal to make the full switch from Nike.Ā
Woods has also stopped wearing Nike golf shoes since his ankle surgery in 2022. He has been recently spotted in FootJoy shoes and has publicly stated that this decision was based on getting the comfort and support he needs after the surgery.Ā
All that said, Nike probably would prefer to keep Woods. They had a similar situation with Federer. But, if a new brand has come in with a lucrative offer, Nike probably wonāt match it considering that Woods is near the end of his career.
If this comes to pass, it will truly be the end of an era.
ā½ļø Something that isnāt coming to an end is the Premier Leagueās dominance of the football money league.Ā
Englandās top league has just agreed a new broadcast deal worth Ā£6.7 Billion ($8.4B). The deal starts in 2025 and will see the league earn just under Ā£200 million ($250m) more per season than the current deal.
The Premier League now earns almost double the annual revenue of Serie A and three times more than Ligue 1.
The only surprise from this deal is the lack of streaming services. There were expectations that Disney or DAZN would make a move and push up the overall value. Instead, Sky and TNT retained their positions and Amazon actually lost their games.Ā
So, does this mean that the streaming companies will not take over football after all?
Not necessarily. Amazon only had Premier League games at Christmas and used them to drive subscriptions to Prime. The return on this strategy will have diminished over the years. Amazon has instead made a big play for Champions League rights, and will have first pick on major games for U.K. coverage in 2024. This will give people a reason to subscribe across the entire year.
Other streamers have been quiet this time around, but donāt be surprised if they return. There is a feeling that they are simply trying to improve their overall live features and waiting for the value of the major rights to level out before coming in.
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