Jump to content
  • Sign up for free and receive a month's subscription

    You are viewing this page as a guest. That means you are either a member who has not logged in, or you have not yet registered with us. Signing up for an account only takes a minute and it means you will no longer see this annoying box! It will also allow you to get involved with our friendly(ish!) community and take part in the discussions on our forums. And because we're feeling generous, if you sign up for a free account we will give you a month's free trial access to our subscriber only content with no obligation to commit. Register an account and then send a private message to @dave u and he'll hook you up with a subscription.

Messi leaving on a free


Ron B
 Share

Recommended Posts

The signing of Lionel Messi provides a huge commercial opportunity for Paris Saint-Germain, but it is quite delusional to suggest that the deal will pay for itself. This is especially the case when it comes to shirt sales, which is one of the great myths that is often repeated at the time of major transfers.

 

Many people do not understand the economics of shirt sales and how they really work. It should be noted that these deals, in this case between Nike and PSG, are not actually sponsorship arrangements. Nike are not paying PSG a reported £67 million per year for their tick to be shown on the front of the kit. This is a licensing agreement, whereby the clubs outsource the manufacturing, marketing and sales of their shirts to the experts.

 

As such, PSG will only be receiving a small proportion of the sale of each shirt. We do not know exactly what is in the French team’s commercial contracts but, generally speaking, the industry standard is that the club receives between five and 10 per cent of proceeds from each shirt sale. Football clubs are big brands but, compared to the sportswear giants, they are tiny businesses.

 

A PSG shirt with Messi’s name on the back costs, on average, around £100, so we can assume that they will be making around £10 for each of those. The club sell around one million shirts per year. It is, therefore, quite clearly the case that Messi’s shirt sales will not cover his salary over the two years, even if they sell hundreds of thousands more shirts now that he has joined. It is not even close: Messi’s deal is worth £53.8 million per season before tax.

 

There are other elements to consider when it comes to Messi’s impact on the club’s finances. PSG will now be focusing on their sponsorship deals and examining how to make the most of having Messi in their ranks. The first thing they will look at is their main shirt sponsor, hotel group Accor. It is reasonable to assume that PSG could make an additional £10 million or £15 million per year based on the expansion of the shirt sponsorship market, which is growing very quickly for the big clubs.

 

As for the rest of the sponsors, PSG will be saying: “Look, we have signed the biggest player in the world.” They will be trying to upsell those sponsors, as well as going after new partners.

 

Outside of sponsorships and shirt sales, it is less clear. They sell a high number of tickets for matches at the Parc des Princes, but could still sell more (and surely will, now that Messi is in Paris). And as for television contracts, there are opportunities for growth but I am sceptical about significant financial gains due to the uncompetitive nature of the French league. Also, PSG only take a share of those revenues.

 

There will also be talk about possible international tours or exhibition events, but these are only likely to bring in an additional £5 million or £10 million. Plus, you can only do those in the off-season, and the next campaign will be disrupted anyway because of the World Cup in Qatar. Finding time for such events will be complicated.

 

All things considered, and assuming that all of PSG’s boats rise at the same time, I can envisage this signing helping to drive additional commercial revenues of around £50 million over the course of Messi’s two-year contract, or around £25 million per year. It is a considerable impact, yes. But it does not even come close to covering the costs of his signing.

 

https://www.telegraph.co.uk/football/2021/08/12/myth-suggest-lionel-messi-will-pay-psg-especially-shirt-sales/

Link to comment
Share on other sites

Had a chuckle at this when I read this in a piece on Messi. Brutal phrasing for Pochettino, who is possibly the most out of his depth man in any job in the world right now. 

‘Messi was impressed that two of the most important people at PSG came straight to them. Messi also spoke to the manager, Mauricio Pochettino.’ 

  • Upvote 3
Link to comment
Share on other sites

1 minute ago, Strontium Dog™ said:

That Balague interview with Messi is quite interesting. Messi says he's been learning English for a year and a half. I wonder if that was for a move which never materialised.

 

I imagine his earning potential would increase if he also spoke English, he could hawk all kinds of crap for a tidy penny.

Link to comment
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

 Share


×
×
  • Create New...