What does Messi Mania Mean for the Future of Sports?
Now that the dust has started to settle on Messi Mania, it’s the perfect time for a recap on what happened, why it’s significant, and a look at what it means for the future of sports.
What happened?
On July 15, 2023, the Argentinian soccer star, Lionel Messi, inked a deal with Inter Miami CF, MLS’s South Florida Club. The deal is worth an estimated $150 million through 2025, with an option for 2026 (Sportico).
Why is it significant?
The deal, which makes Messi the highest-paid player in MLS history, is historic for that reason and because of the other aspects added to his contract.
As part of the agreement, Messi receives an undisclosed amount of equity in Inter Miami CF, which is unheard of for an active player in any league.
But just because it’s unheard of doesn’t mean people haven’t been speculating about player equity. Joe Pompliano, the author of the Huddle Up newsletter, wrote an article on August 9, 2021, about the same issue regarding NFL quarterback Tom Brady.
According to the Huddle Up, the New England Patriot’s valuation went from “$464 million when Brady joined the team in 2000, which was just slightly above the average NFL franchise valuation of $423 million” to $5 billion.
Based on these numbers, Pompliano asks, “But what happens when that [contract] model fails to adequately capture the true economic impact of a top-tier professional athlete?”
In this case, Messi knows his worth and is doing everything he can to capture it accurately.
His income doesn’t stop at contract and equity. It also includes “revenue-sharing agreements with league partners Apple, Adidas, and Fanatics [that] are still being negotiated and would be in addition to this total” (Sportico).
What does it mean for the future of sport?
This contract is a milestone for the MLS and is lauded as “another David Beckham moment for US soccer” (Insider).
It adds legitimacy to a league that, in its growth, has struggled with homegrown players leaving for European clubs and stars of European clubs not making the same migration.
Additionally, it removes the potential for sportswashing that Saudi Arabian club Al-Hilal, would have had if they had signed Messi with their monstrous contract of $505 million (Goal). Sportswashing, according to Greenpeace, is “the act of sponsoring a sports team or event in order to distract from bad practices elsewhere.”This tactic is often used by companies and governments with poor environmental or human rights records, exploiting people's love of sport to 'wash' their image clean.
Saudi Arabia is frequently in the headlines for the practice, and most recently, with LIV Golf. Read more about the argument over the nation and sportswashing in the Associated Press.
Lastly, Messi sets a precedent for superstar players receiving more than just their contract. Which player will foray into the world of sports equity next?