After the successes of sporting events in many countries as a tool to expand tourism, economic activities, cultural exchange, and importantly, sport development.
The expansion frenzy started with the foray of China into football and tennis. Japan joined the queue and then UAE, Bahrain upped the ante with Formula 1 races. Qatar broke the glass ceiling with the hosting of the FIFA World Cup. The Saudis quickly realized that oil and pilgrimage are not the only viable ways to be relevant in global affairs hence it’s big money move for Ronaldo, Benzema and others. It’s also creating a new city totally insulated from the strict Islamic laws. The new city is meant to rival Dubai, Qatar, Bahrain and Oman as a tourist and entertainment hub.
The Saudis turned the golfing world upside down with the Greg Norman led LIV Golf season. The 8 tournaments in 2022 have $255m in prize money. The PGA quickly realized it’s efforts to prevent players from playing in the LIV has been futile. The PGA and LIV merged early this year.
The US soccer league, favourably referred as MLS shocked the sporting world with the signing of Lionel Messi, arguably the best footballer ever by Inter Miami. Remember, Messi has been under the radar of a Saudi team in a deal projected to be around half a billion dollars.
Messi deal with Inter Miami is unprecedented in the anal of football. The negotiations took about 3 years right from his days at Barcelona before his sojourn to PSG. The deal is unique because Messi also signed contracts with all the league sponsors. The two-and-a-half-year deal includes an option for 2026.
The agreement is worth up to $150 million total from his salary, signing bonus and equity in the team. Messi is expected to exercise his ownership stake in the franchise after he is done playing with Inter Miami. Revenue-sharing agreements with league partners Apple, Adidas and Fanatics. This might bring in additional $80m – 120m per annum for Messi.
The signing of Messi has set off a flurry of ticking buying with prices on the secondary market jumping as much as 1,000% in some markets. Inter Miami season ticket demand had been 10 times what the team could fulfill. Inter Miami is expected to add 3,000 seats to its current stadium to help meet some of the demand.
Inter Miami had 1 million Instagram followers before the Messi announcement, but now has more than 8 million, which ranks fifth among American sports franchises; only a quartet of NBA teams are ahead. Messi has 473 million followers—second in the world behind Cristiano Ronaldo.
Messi, 35, has earned an estimated $1.2 billion in salary, bonuses and endorsements during his nearly two decades as a pro. The tally ranks fifth all time among athletes. Inter Miami MLS valuation of $585m which placed it in the 10th position will likely double by the end of the year and move it to the top of MLS valuation.
